Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist.
Refer to Fact Pattern 31-2. The agreement between Dynamo and Energy that sets out the capital structure and other features of Fuel Inc.
A) amends the articles of Dynamo and Energy.
B) disappears once the combination is complete.
C) combines with the articles of Dynamo and Energy.
D) takes the place of the articles of Dynamo and Energy.

Question

Quizplus · Accepted Answer

The agreement to form Fuel Inc. replaces the articles of incorporation of Dynamo and Energy, as both companies cease to exist and are succeeded by the new entity, Fuel Inc.

Fact Pattern 31-2 Dynamo Corporation Combines Its Assets and Liabilities