Rock Quarry Inc. merges with Stonework Inc. Only Stonework remains. Rock Quarry held rights in certain real property. With respect to these assets, in the merger Stonework assumes
A)none.
B)only those acquired after the merger was proposed.
C)an amount equal to the ratio of the firms' pre-merger market values.
D)all.

Question

Quizplus · Accepted Answer

In a merger where one company absorbs another, the surviving entity (in this case, Stonework Inc.) assumes all assets and liabilities of the company being absorbed (Rock Quarry Inc.). This includes rights in real property held by Rock Quarry Inc. prior to the merger.