A ________ is a situation in which one corporation acquires all the shares of another corporation, and both corporations retain their separate legal existence.

Question

Quizplus · Accepted Answer

A share exchange is a transaction where one company acquires all the shares of another company, but both companies continue to exist as separate legal entities. This is distinct from a merger, where two companies combine to form a new entity, or a spin-off, where a portion of a company is separated to form a new company. A reverse takeover typically involves a smaller company acquiring a larger one.

A ________ Is a Situation in Which One Corporation Acquires