Asked by Priya Puppala on Jul 07, 2024
Verified
A share exchange can be used to create a holding company.
Share Exchange
A process in which some or all of the shares of one corporation are exchanged for some or all of the shares of another corporation, and both corporations continue to exist.
Holding Company
A company whose business activity is holding shares in another company.
- Gain insight into the core contrasts between mergers, consolidations, takeovers, and share exchanges.
Verified Answer
CC
carolina chaverriaJul 14, 2024
Final Answer :
True
Explanation :
A share exchange, where shareholders exchange their shares for shares in a new company, can be used to restructure a business into a holding company structure, with the new company serving as the holding company for the original entity.
Learning Objectives
- Gain insight into the core contrasts between mergers, consolidations, takeovers, and share exchanges.
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