Kudos Corporation combines its assets and liabilities with those of Livestream Company to form MedOnline Inc. Kudos and Livestream cease to exist. The agreement between Kudos and Livestream that sets out the capital structure and other features of MedOnline
A)amends the articles of Kudos and Livestream.
B)disappears once the combination is complete.
C)combines with the articles of Kudos and Livestream.
D)takes the place of the articles of Kudos and Livestream.

Question

Quizplus · Accepted Answer

When two companies combine assets and liabilities to form a new entity, and the original companies cease to exist, the agreement that outlines the new entity's capital structure and other features essentially replaces the articles of incorporation of the original companies. This is because the original entities are dissolved, and their legal and operational frameworks are no longer relevant or applicable.

Kudos Corporation Combines Its Assets and Liabilities with Those of Livestream