Question

Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation. Through a certain transaction, Mall Stores combines with Niche Retail, but only Mall Stores continues to exist. This is______________.a. a consolidation.b. a share exchange.c. a short-form merger.d. a termination.

Answer 1

Answer:

c. a short-form merger

Explanation:

A short-form merger -

It refers to the type of merger , where , the parent company and its subsidiary is merged together , is referred to as a short - form merger .

In this type of merger , the parent company need to have minimum of 90% of the subsidiary before a short - form merger .

The method is adapted to maintain the shareholders of the subsidiary from getting approve the arrangement .

Hence , from the given information of the question,

The correct option is c. a short-form merger .