Fact Pattern 40-1B
Shrimp Boat Company decides to consolidate its operations with Trawlers, Inc., to form Unique Fishers Corporation .
-Refer to Fact Pattern 40-1B. Trawlers owed money to View Harbor Storage and other creditors. After the consolidation, UFC must pay
A) all of Trawlers' debts.
B) half of Trawlers' debts.
C) none of Trawlers' debts.
D) only debts that Trawlers incurred after consolidation was proposed.

Question

Fact Pattern 40-1B 
Shrimp Boat Company decides to consolidate its operations with Trawlers, Inc., to form Unique Fishers Corporation .
-Refer to Fact Pattern 40-1B. Trawlers owed money to View Harbor Storage and other creditors. After the consolidation, UFC must pay
A) all of Trawlers' debts.
B) half of Trawlers' debts.
C) none of Trawlers' debts.
D) only debts that Trawlers incurred after consolidation was proposed.

Quizplus · Accepted Answer

When two companies consolidate, the surviving company takes on all the assets and liabilities of the combining companies. Therefore, Unique Fishers Corporation (UFC) must pay all of Trawlers' debts, including those owed to View Harbor Storage and other creditors.