1. When a merger of two firms is achieved by one firm automatically assuming all the assets and all the liabilities of the other firm; such a merger requires:

a. no shareholder meeting to vote is necessary.

b. the approval of at least 50% of the stockholders (or as specified by corporate charters or state laws) of each firm.

c. that the management of the two firms be tossed out.

d. none of the above.

2. A tax-paying corporation interested in liquidity would prefer to invest short-term money in:

a. Preferred stock

b. Floating-rate preferred stock

c. Common stock

d. Long-term bonds