A statutory merger is a(n)

A) Business combination in which only one of the two companies continues to exist as a legal corporation.

B) Business combination in which both companies continue to exist.

C) Acquisition of a competitor.

D) Acquisition of a supplier or a customer.

E) Legal proposal to acquire outstanding shares of the target’s stock.

Answer: A

Learning Objective: 02-03

Topic: Business combination―Differentiate across forms

Difficulty: 2 Medium

Blooms: Remember

AACSB: Reflective Thinking

AICPA: BB Critical Thinking

AICPA: FN Measurement