An Enterprise That Conducts Business Following a Merger or Consolidation

question 1

Multiple Choice

An enterprise that conducts business following a merger or consolidation succeeds to:

• A) all of the rights of the predecessor.
• B) all of the property of the predecessor.
• C) all of the debts and liabilities of the predecessor.
• D) all of the above.

---

Definitions:

Earned

Earned typically refers to income or revenue that has been generated from businesses activities or investments and is recognized upon the delivery of goods or services.

Clients

Individuals or entities that receive services or products from a business in exchange for payment.

Liability Insurance

Insurance that provides protection against claims resulting from injuries and damage to people and/or property, covering legal costs and payouts for which the insured party is responsible.

Prepaid

Expenses that are paid for in advance of receiving the benefit, often recorded as assets until the expense is incurred.