An example of a difference in types of business combination is: A. A statutory merger can only be effected by a capital stock acquisition while a statutory consolidation can only be effected by an asset acquisition. B. A statutory merger requires dissolution of the acquired company while a statutory consolidation does not require dissolution. C. A statutory merger can only be effected by an asset acquisition while a statutory consolidation can only be effected by a capital stock acquisition. D. A statutory consolidation requires dissolution of the acquired company while a statutory merger does not require dissolution.

B. A Statutory merger requires dissolution of the acquired company while a statutory consolidation does not require dissolution.

Explanation:

A statutory merger refers to collaboration between two entities wherein one entity i.e the acquiring firm gets entitled to continue it's legal existence while the weak company or the acquired company's identity is lost.

In case of statutory consolidation, it is a kind of merger wherein, the merged entities lose their identity and an altogether new entity is formed to take over the assets and liabilities.

In case of statutory merger, the acquiring company takes over the business and assets and liabilities of the acquired company whereas under consolidation, the assets and liabilities of both the entities are pooled together and taken over by a new entity which is created.

Federal and state governments may oppose and disallow any of the two mergers if they believe, such mergers would lead to anti competitive practices and creation of monopolies.

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