Which of the Following Is Generally False When a Consolidation

question 21

Multiple Choice

Which of the following is generally false when a consolidation occurs?

• A) The new corporation has independent legal status.
• B) The original corporations continue to exist legally.
• C) The consolidated entity assumes the debts of the original corporations.
• D) The consolidated entity obtains the original corporations' assets.
• E) The consolidated entity takes on the rights of the original companies.

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Definitions:

Vitamin A

An essential fat-soluble vitamin important for vision, growth, cell division, reproduction, and immunity.

Carotenoid

Pigments found in plants and some microorganisms, responsible for vibrant yellow, red, and orange colors and playing a role in photosynthesis.

Insoluble

A characteristic of substances that cannot dissolve in a specified solvent, such as water.

Double Bonds

Chemical bonds between two atoms involving four bonding electrons instead of the usual two, making compounds more reactive.