Ample Corporation combines its assets and debts near those of Xantha Corporation to form AXCorp. The formation
a consolidation.
a dissolution.
a liquidation.
a merger.
Answers:
Assuming that the sound out concerns US ruling:
(1) The combination, which is described, is a "consolidation", which is defined as the joining together of two corporations, where two corporations verbs their assets and liability to create a different corporation.
(2) The combination is not a "dissolution", which is defined as the termination of a corporation any (a) voluntarily by resolution of the shareholders, the reward of adjectives corporate debts, the distribution of adjectives remaining assets, and the file of dissolution documents beside the Secretary of State; or (b) involuntarily, by state suspension for the failure to pay of tariff, by liquidation, or by other trial bustle.
(3) The combination is not a "liquidation", which is defined as the mart of corporate assets, the pay-out of its debts, and the distribution of its remaining assets among the shareholders. The difference between a corporate dissolution and a corporate liquidation is that, in the latter shield, the corporation continues to exist as a "shell" corporation, in need assets, liabities or means.
(4) The combination is not a "merger", which is defined as the joining together of two corporations, where one corporation transfers adjectives of its assets to the other, which continues to exist. In effect one corporation "swallows" the other, but the shareholders of the swallowed company receive shares of the surviving corporation. The difference between a corporate consolidation and a corporate merger is that, in the latter shield, one of the two corporations survives while, contained by the former casing, neither of the two corporations survives.
Hope this is clear.
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a dissolution.
a liquidation.
a merger.
Answers:
Assuming that the sound out concerns US ruling:
(1) The combination, which is described, is a "consolidation", which is defined as the joining together of two corporations, where two corporations verbs their assets and liability to create a different corporation.
(2) The combination is not a "dissolution", which is defined as the termination of a corporation any (a) voluntarily by resolution of the shareholders, the reward of adjectives corporate debts, the distribution of adjectives remaining assets, and the file of dissolution documents beside the Secretary of State; or (b) involuntarily, by state suspension for the failure to pay of tariff, by liquidation, or by other trial bustle.
(3) The combination is not a "liquidation", which is defined as the mart of corporate assets, the pay-out of its debts, and the distribution of its remaining assets among the shareholders. The difference between a corporate dissolution and a corporate liquidation is that, in the latter shield, the corporation continues to exist as a "shell" corporation, in need assets, liabities or means.
(4) The combination is not a "merger", which is defined as the joining together of two corporations, where one corporation transfers adjectives of its assets to the other, which continues to exist. In effect one corporation "swallows" the other, but the shareholders of the swallowed company receive shares of the surviving corporation. The difference between a corporate consolidation and a corporate merger is that, in the latter shield, one of the two corporations survives while, contained by the former casing, neither of the two corporations survives.
Hope this is clear.