In a Consolidation, Which of the Following Is True Regarding

question 76

Multiple Choice

In a consolidation, which of the following is true regarding the property of the original corporations?

• A) It must be sold and distributed to the respective shareholders.
• B) It must be held in trust for at least one year to satisfy claims of creditors.
• C) It must be held in trust for at least six months to satisfy claims of creditors.
• D) It must be placed within the jurisdiction of the secretary of state for at least one year in order to satisfy claims of creditors.
• E) It is acquired by the new corporation.

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Definitions:

Ceramic Plates

Durable dishes made from clay that are hardened by heat, commonly used for eating, serving, and decoration purposes.

Flawed Units

items that have defects or do not meet the quality standards set by the manufacturer or industry, rendering them less valuable or unsellable.

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.