Which of the following is not true of mergers? Liabilities and assets transfer automatically May be...
- Which of the following is not true of mergers?
- Liabilities and assets transfer automatically
- May be subject to transfer taxes.
- No minority shareholders remain.
- May be time consuming due to need for shareholder approvals.
- May have to pay dissenting shareholders appraised value of stock
Homework Answers
Minority shareholder will be remaining in case of merger because when mergers will be done minority shareholders are to be taken appropriate care and they should be provided with appropriate stake in another company and there should be appropriate management of their protection of interest so this statement is false.
Correct answer is option ( C) no minority shareholder remain
Add Answer to:
Which of the following is not true of mergers?
Liabilities and assets transfer automatically
May be...
Which of the following is not true of mergers? Liabilities and assets transfer automatically May be...
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On May 1, Donovan Company reported the following account balances: Current assets Buildings & equipment (net) $ 130,000 260,000 Total assets $390,000 Llabilities Common stock Retained earnings $ 98,500 150,000 141,500 Total liabilities and equities $390,000 On May 1, Beasley paid $465,200 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $15,900 in accounts payable for legal and accounting fees....
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