Which of the Following Is Generally False When a Consolidation

question 51

Multiple Choice

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

• A) The new corporation has independent legal status.
• B) The shareholders of the new corporation create new articles of incorporation.
• C) The consolidated entity assumes the debts of the original corporations.
• D) The consolidated entity obtains the original corporations' assets.
• E) The consolidated entity does not obtain the original corporations' rights, powers, and privileges.

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Definitions:

Compliance

The tendency to agree to do things requested by others.

Obedience

The act of following the directions or commands of an authority figure.

Bystander Intervention Effect

The failure to offer help to people in need.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.