2. What is the final relationship between two corporations that were parties to a share exchange?

7. If the sole shareholder of Diane's Auto Parts, Inc., which holds the stock of 95 percent of the D.G. Auto Parts Corporation, decides to merge the two corporations together, with Diane's Auto Parts, Inc., being the surviving corporation, what type of merger would it be? Why are the requirements for shareholder approval different for this type of merger? Why are approval requirements different for upstream mergers?

10. Suppose that the shareholders of Kate's Household Products, Inc., are interested in acquiring one of their biggest suppliers, Nixon Chemical Corporation, but they are concerned about past problems that Nixon Chemical has had with toxic waste disposal. What type of acquisition might be the most beneficial to Kate's Household Products, Inc.?

11. What are some possible disadvantages of acquiring an auto dealer, or a corporation that owns several pieces of real estate, through an asset acquisition rather than a stock acquisition transaction?