Asked by Diksha Panwar on Jul 28, 2024
Verified
In a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.
Surviving Corporation
The remaining, or continuing, corporation following a merger.
Assets and Liabilities
Elements of a financial statement; assets represent resources owned, while liabilities represent obligations owed.
Disappearing Corporation
A scenario where a corporation intentionally vanishes or dissolves, often to evade legal responsibilities or liabilities.
- Understand the legal variance between entities that persist and those that dissolve following mergers and consolidations.
- Acquire knowledge on how mergers and the assumption of responsibilities affect creditors financially.
Verified Answer
KA
keliza alvarezJul 28, 2024
Final Answer :
True
Explanation :
In a merger, the surviving corporation automatically assumes all the assets and liabilities of the disappearing corporation, effectively continuing its business operations and obligations.
Learning Objectives
- Understand the legal variance between entities that persist and those that dissolve following mergers and consolidations.
- Acquire knowledge on how mergers and the assumption of responsibilities affect creditors financially.