Carrier Company exchanges some of its shares for some of the shares of Dispatch Corporation. The plan for this exchange must be approved by each corporation's

A) directors only.
B) shareholders only.
C) directors and shareholders.
D) none of the choices.

In most jurisdictions, both the directors and the shareholders of a corporation must approve significant corporate actions such as exchanging shares with another corporation. The directors typically approve the proposal first, and then the shareholders vote on the directors' recommendation.