Question 1

The major constitutional limitation on long-arm statutes is the Due Process Clause.

Accepted Answer

A) True 
 B)False

Question 2

A takeover requires an affirmative vote by the target company's board of directors.

Accepted Answer

A) True 
 B)False

Question 3

The tender offer is an invitation to shareholders to sell their shares at a stipulated price.

Accepted Answer

A) True 
 B)False

Question 4

The process of winding up is known as amalgamation.

Accepted Answer

A) True 
 B)False

Question 5

_____ is the process of paying the creditors and distributing the assets of a corporation.

Accepted Answer

A)   Dissolution
B)   Vertical integration
C)   Amalgamation
D)   Liquidation
E)   Horizontal integrationF) C) and D)
G) D) and E)

Question 6

In a merger, the acquired company goes out of existence by being absorbed into the acquiring company.

Accepted Answer

A) True 
 B)False  True

Question 7

Which of the following expansion strategies results in the formation of an entity that is an entirely new corporation?

Accepted Answer

A)   A cash merger
B)   A takeover
C)   A consolidation
D)   An asset purchase
E)   A noncash mergerF) A) and D)
G) D) and E)

Question 8

Dissolution of a corporation is the same as corporate death.

Accepted Answer

A) True 
 B)False

Question 9

A consolidation between two firms differs from a merger between two firms in that the consolidation between two firms:

Accepted Answer

A)   is a backward vertical expansion strategy.
B)   is a forward vertical expansion strategy.
C)   leads to the formation of a new corporation.
D)   leads to an entity free from successor's liability.
E)   is a horizontal integration strategy.F) C) and D)
G) A) and B)

Question 10

A foreign corporation may not sue in the state courts to enforce its rights until it obtains an)  _____.

Accepted Answer

A)   no-objection certificate
B)   stay order
C)   certificate of authority
D)   promissory note
E)   letter of creditF) A) and E)
G) A) and D)

Question 11

In an) _____, the acquiring company appeals directly to the target's shareholders, offering either money or other securities, often at a premium over market value, in exchange for their shares.

Accepted Answer

A)   merger
B)   takeover
C)   consolidation
D)   asset purchase
E)   codicilF) C) and E)
G) All of the above

Question 12

Differentiate between a merger and a takeover.

Accepted Answer

Merger occurs when an acquired company g...

Question 13

In order to completely acquire Write Well Inc., Delta Inc. paid the shareholders of Write Well Inc. money in exchange for their shares. This is an example of a _____.

Accepted Answer

A)   freeze-out merger
B)   non cash merger
C)   horizontal divestiture
D)   leveraged buyout
E)   vertical divestitureF) A) and E)
G) A) and D)

Question 14

Dissolution differs from liquidation in that dissolution is:

Accepted Answer

A)   the end of the legal existence of a corporation.
B)   the end of the physical existence of a corporation.
C)   the distribution of a corporation's assets.
D)   the distribution of a corporation's liabilities.
E)   a process independent from the judicial system.F) B) and D)
G) None of the above

Question 15

Even when a tender offer has not been made, the Williams Act requires any person who acquires more than 5 percent ownership of a corporation to file a statement with the Securities and Exchange Commission SEC) within ten days.

Accepted Answer

A) True 
 B)False

Question 16

Sequestration of a corporation's assets at the hands of a receiver will terminate the corporation's being.

Accepted Answer

A) True 
 B)False

Question 17

Ending the legal existence of a corporation by unanimous written consent of its shareholders is known as _____.

Accepted Answer

A)   voluntary dissolution
B)   involuntary dissolution
C)   forward vertical integration
D)   backward vertical integration
E)   amalgamationF) B) and E)
G) D) and E) A

Question 18

If one company acquires 90 percent or more of the stock of another company, it can merge with the target company without the consent of the target company's shareholders. The resultant merger is known as the _____ merger

Accepted Answer

A)   ademption
B)   runaway shop
C)   codicil
D)   short-form
E)   closed shopF) A) and B)
G) C) and E)

Question 19

Liquidation is the same as involuntary dissolution.

Accepted Answer

A) True 
 B)False  False

Question 20

Successor's liability has the least adverse effect on an)  ____.

Accepted Answer

A)   cash merger
B)   takeover
C)   consolidation
D)   asset purchase
E)   noncash mergerF) B) and D)
G) A) and E)

Exam 29: Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

The major constitutional limitation on long-arm statutes is the Due Process Clause.

Correct AnswerverifiedShow Answer

A takeover requires an affirmative vote by the target company's board of directors.

Correct AnswerverifiedShow Answer

The tender offer is an invitation to shareholders to sell their shares at a stipulated price.

Correct AnswerverifiedShow Answer

The process of winding up is known as amalgamation.

Correct AnswerverifiedShow Answer

_____ is the process of paying the creditors and distributing the assets of a corporation.

Correct AnswerverifiedShow Answer

In a merger, the acquired company goes out of existence by being absorbed into the acquiring company.

Correct AnswerverifiedTrue

Which of the following expansion strategies results in the formation of an entity that is an entirely new corporation?

Correct AnswerverifiedShow Answer

Dissolution of a corporation is the same as corporate death.

Correct AnswerverifiedShow Answer

A consolidation between two firms differs from a merger between two firms in that the consolidation between two firms:

Correct AnswerverifiedShow Answer

A foreign corporation may not sue in the state courts to enforce its rights until it obtains an) _____.

Correct AnswerverifiedShow Answer

In an) _____, the acquiring company appeals directly to the target's shareholders, offering either money or other securities, often at a premium over market value, in exchange for their shares.

Correct AnswerverifiedShow Answer

Differentiate between a merger and a takeover.

Correct AnswerverifiedMerger occurs when an acquired company g...View AnswerShow Answer

In order to completely acquire Write Well Inc., Delta Inc. paid the shareholders of Write Well Inc. money in exchange for their shares. This is an example of a _____.

Correct AnswerverifiedShow Answer

Dissolution differs from liquidation in that dissolution is:

Correct AnswerverifiedShow Answer

Even when a tender offer has not been made, the Williams Act requires any person who acquires more than 5 percent ownership of a corporation to file a statement with the Securities and Exchange Commission SEC) within ten days.

Correct AnswerverifiedShow Answer

Sequestration of a corporation's assets at the hands of a receiver will terminate the corporation's being.

Correct AnswerverifiedShow Answer

Ending the legal existence of a corporation by unanimous written consent of its shareholders is known as _____.

Correct AnswerverifiedA

If one company acquires 90 percent or more of the stock of another company, it can merge with the target company without the consent of the target company's shareholders. The resultant merger is known as the _____ merger

Correct AnswerverifiedShow Answer

Liquidation is the same as involuntary dissolution.

Correct AnswerverifiedFalse

Successor's liability has the least adverse effect on an) ____.

Correct AnswerverifiedShow Answer

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True

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Merger occurs when an acquired company g...
View Answer

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A

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