Market Company exchanges some of its shares for some of the shares of Niche Corporation. On the exchange of shares between Market and Niche
A)both companies continue to exist.
B)both companies cease to exist.
C)only Market survives.
D)only Niche survives.

Question

Quizplus · Accepted Answer

When companies exchange shares, they both continue to exist as separate legal entities. This exchange does not dissolve either company.

Market Company Exchanges Some of Its Shares for Some of the Shares