Through a certain transaction, Corporate Properties, Inc., acquires all of the shares of Downtown Realty Corporation for some of Corporate Properties's shares. Both Corporate Properties and Downtown Realty continue to exist. This is
A) a consolidation.
B) a share exchange.
C) a short-form merger.
D) a termination.

Question

Quizplus · Accepted Answer

This is a share exchange, where one company acquires another by offering its own shares in exchange for the target company's shares. Both companies continue to exist after the transaction. A consolidation would involve the merging of both companies into a new entity, a short-form merger would involve the acquisition of a subsidiary by its parent company without the need for shareholder approval, and a termination would involve the dissolution of one or both companies.

Through a Certain Transaction, Corporate Properties, Inc