Which of the Following Is Generally False Regarding the Surviving

question 41

Multiple Choice

Which of the following is generally false regarding the surviving entity in a merger situation?

• A) The surviving entity remains a single corporation.
• B) The shareholders of the surviving entity must amend its articles of incorporation according to the specific conditions of the merger.
• C) The surviving entity does not become liable for debts of the absorbed corporation.
• D) The surviving entity obtains the absorbed corporation's assets.
• E) The surviving entity obtains the absorbed corporation's rights, powers, and privileges.

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Definitions:

Machine Lubrication

The process of applying lubricants to machinery to reduce friction, prevent wear, and extend the life of the equipment.

Tires

Tires are rubber-based, circular components that fit around wheels to provide vehicles with traction, support, and a smooth ride over various surfaces.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, rent, and maintenance of equipment, which are not directly tied to production.

Direct Labor

The labor costs directly associated with the production of goods or services, typically including wages of workers directly involved in manufacturing.