When a Consolidation Occurs, What Happens to the Original Corporations

question 65

Multiple Choice

When a consolidation occurs, what happens to the original corporations?

• A) Nothing, they all continue to exist, the consolidation is for debt purposes only.
• B) The original corporations continue to exist legally, but only the profits are shared.
• C) The original corporations do not continue to exist.
• D) The consolidated entity obtains all the original corporations' assets and assumes the larger of the corporation's name.
• E) The consolidated entity takes on the rights and responsibilities of the original companies.

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Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, serving as a broad measure of economic activity.

Economy's Production

The total value of all goods and services produced within an economy over a specific time period.

Goods and Services

The physical items (goods) and activities (services) that satisfy human wants and needs and are offered in the marketplace for purchase.

GDP

Gross Domestic Product signifies the total monetary value of all goods and services produced within a country's boundaries over a predetermined time frame, reflecting the nation's economic health.