A Successor Enterprise Is Not Subject to the Contract Obligations

question 14

Multiple Choice

A successor enterprise is not subject to the contract obligations of the former business if:

• A) one corporation is absorbed by another through merger.
• B) a corporation merely purchases the assets of another business.
• C) two or more corporations consolidate.
• D) none of the above.

---

Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Record Date

The specific date set by a company on which the investors must own shares to be entitled to dividends.

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares.