The corporation that __________ the other in a merger also inherits the other corporations preexisting legal rights.

Fill in the blank(s) with the appropriate word(s).

Ans: absorbs

Business

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The difference between the issue price per share of common stock and the par value per share of the stock is credited to:

A) Retained Earnings. B) Common Stock. C) Paid-in Capital in Excess of Par—Common. D) Goodwill.

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Which of the following terms designates the legal ability of a party to enter into a contract?

A)Consent B)Affirmation C)Materiality D)Capacity

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