Fact Pattern 31-4 Carrier Company Exchanges Some of Its Shares

Multiple Choice

Fact Pattern 31-4 Carrier Company exchanges some of its shares for some of the shares of Distribution Corporation. The exchange is used to create Equity Inc., whose business activity is to hold the shares of the two companies.
Refer to Fact Pattern 31-4. The plan for the exchange of shares between Carrier and Distribution must be approved by each corporation's

A) directors only.
B) shareholders only.
C) directors and shareholders.
D) none of the choices.