Final Exam Name 18. In a surviving corporation. Date shares in the disappearing

Question

Final Exam Name 18. In a surviving corporation. Date shares in the disappearing corporation are automatically converted into shares in the a. cash out b. noncash c. freeze out d. liquidation leral s ro andar a join 19. In a(n)a stock purchase is financed by debt. a. cash out merger b. freeze out acquisition c. leveraged buyout d. illegal purchase requ ns i rp 20. In most jurisdictions, there is no quorum unless the holders of at leastof person or by proxy ass the outstanding a. 25% b. 33% ?. 50% d. 75% fo oI 21. Which of the following is true regarding taxation of losses of a C corporation? a. The operating loss is passed on to shareholders, but the corporation itself does not realize any benefit. b. The operating loss is recognized at the corporate level, and shareholders also receive a tax benefit. c. The operating loss will be recognized at the corporate level, shareholders receive no tax benefit, and the corporation receives no benefit until it has operating income against which its prior losses can be deducted they must wait until they receive some amount of profit from the corporation at which point they can deduct up to 10% of the losses per year. d. The operating loss is not recognized at the corporate level; and although shareholders may receive a deduction,

Explanation / Answer

(a). non cash merger

Explanation: When a company merges with another company, its shareholders can convert their shares into the merged entity. These are called merger securities which are non cash assets. This consist of options, bonds, warrants and others.

(b). leveraged buyout

Explanation: The advantage of using a leveraged buyout is that it allows company to make huge acquisition without committing a lot of money. In this acquisition most of the financing is done by borrowing money and the company use the assets of the company being acquired as collateral for the loans.

(c). 50%

Explanation: Quorum is minimum number of members to be present at the meeting of any community or corporation, in order to take any action or make proceedings in the meeting. The quorum requirement is set by state's corporate statute. But usually, no quorum is required if holders of atleast 50% of outstanding shares are present by person or by proxy.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.