When a consolidation occurs, what happens to the original corporations?
A) Nothing, they all continue to exist, the consolidation is for debt purposes only.
B) The original corporations continue to exist legally, but only the profits are shared.
C) The original corporations do not continue to exist.
D) The consolidated entity obtains all the original corporations' assets and assumes the larger of the corporation's name.
E) The consolidated entity takes on the rights and responsibilities of the original companies.

Question

Quizplus · Accepted Answer

In a consolidation, the original corporations cease to exist and a new entity is formed, which takes over the assets and liabilities of the original corporations.

When a Consolidation Occurs, What Happens to the Original Corporations