The Surviving Entity in a Merger Situation Is ________

question 2

Multiple Choice

The surviving entity in a merger situation is ________

• A) not liable for any of the debts of the absorbed corporations.
• B) liable for all debts and obligations of any absorbed corporation.
• C) liable for only half of the debts and obligations of any absorbed corporation.
• D) liable only for the debts and obligations that are known to the absorbing corporation.
• E) liable for the debts that the shareholders agree to pay of the absorbing corporation.

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Definitions:

Negative Externalities

Unintended and unfavourable outcomes or costs imposed on a third party not involved in a transaction or activity.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often leading to underproduction of the good or service in absence of intervention.

Education

The systematic process of facilitating learning, acquiring knowledge, skills, values, and attitudes.