Xanadu Company Wants to Acquire Yazoo Corporation

Question 115
Multiple Choice

Xanadu Company wants to acquire Yazoo Corporation.Xanadu gives some of its own Xanadu stock to each of the shareholders of Yazoo in exchange for the Yazoo stock.Once this is done,Xanadu owns all of the Yazoo stock,but the company does nothing further with the Yazoo stock.This transaction is called a: A) merger. B) consolidation. C) purchase of assets. D) share exchange. E) hostile takeover.