Consolidation requires the approval of both corporations' board of directors and shareholders, similar to mergers, to proceed. This ensures that the interests of both companies and their stakeholders are considered before the consolidation is finalized.

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A Consolidation

Question 58

Multiple Choice

A consolidation:

A) has precisely the same result as a merger.
B) is the most typical form of business combination used today.
C) is always illegal (in contrast to mergers, which are legal under some state laws) .
D) requires the assent of both corporations' board of directors and shareholders.

Correct Answer: