When one firm merges with another, the:
A)Boards of directors will merge also
B)Merger must be approved by 75% of the shareholders of the target firm
C)Merger must be approved by at least 50% of the shareholders of the target firm
D)Target firm will cease to exist

Question

Quizplus · Accepted Answer

When one firm merges with another, the target firm will cease to exist and its assets, liabilities, and obligations will be transferred to the surviving firm. The boards of directors may also change, but it is not guaranteed. The approval by shareholders depends on the terms of the merger agreement and may vary.

When One Firm Merges with Another, The