Cloud Inc. merges with Data Corporation. Cloud, the surviving corporation, issues shares or pays fair consideration to
A)Cloud's shareholders.
B)Data's shareholders.
C)the state.
D)no one.

Question

Quizplus · Accepted Answer

In a merger where one corporation (Cloud Inc.) is the surviving entity, it typically issues shares or pays fair consideration to the shareholders of the non-surviving corporation (Data Corporation) as compensation for their shares being absorbed into the surviving entity.

Cloud Inc Merges with Data Corporation