Farm Inc Combines Its Assets and Liabilities with Those of Grain

question 29

Multiple Choice

Farm Inc. combines its assets and liabilities with those of Grain Company to form Harvest Corporation. Farm and Grain cease to exist. With respect to the liabilities of Farm and Grain, Harvest acquires

• A)none.
• B)only those acquired after the combination was proposed.
• C)an amount equal to the ratio of the firms' pre-merger market values.
• D)all.

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Definitions:

Human Rights Legislation

Laws enacted to protect individuals and groups against discrimination and to guarantee fundamental freedoms and rights, such as freedom of speech and equal treatment.

Discrimination

Unfair or unjust treatment of people based on characteristics such as race, age, sex, or disability.

Corporate Culture

The shared values, behaviors, ethics, and organizational ethos that characterizes members of a corporation or business.

Wrongful Hiring

A legal claim that arises when an employer negligently hires an employee who is unfit or dangerous, leading to harm or damage.