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An Example of a Difference in Types of Business Combination

Question 2

Multiple Choice

An example of a difference in types of business combination is:

A) A statutory merger can only be effected by an asset acquisition while a statutory consolidation can only be effected by a capital stock acquisition.
B) A statutory merger can only be effected by a capital stock acquisition while a statutory consolidation can only be effected by an asset acquisition.
C) Both a statutory merger and a statutory consolidation requires dissolution of at least one company.
D) A statutory consolidation requires dissolution of the acquired company while a statutory merger does not require dissolution.
E) Both a statutory merger and a statutory consolidation can only be effected by an asset acquisition but only a statutory consolidation requires dissolution of the acquired company.

Correct Answer: