Which of the following statements is true regarding a statutory consolidation?
A) The original companies dissolve while remaining as separate divisions of a newly created company.
B) Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company.
C) The acquired company dissolves as a separate corporation and becomes a division of the acquiring company.
D) The acquiring company acquires the stock of the acquired company as an investment.
E) A statutory consolidation is no longer a legal option.

Question

Quizplus · Accepted Answer

In a statutory consolidation, the original companies dissolve and combine to form a new entity, with the original companies becoming divisions of this newly created company.

Which of the Following Statements Is True Regarding a Statutory