The surviving entity in a merger situation is ________
A) not liable for any of the debts of the absorbed corporations.
B) liable for all debts and obligations of any absorbed corporation.
C) liable for only half of the debts and obligations of any absorbed corporation.
D) liable only for the debts and obligations that are known to the absorbing corporation.
E) liable for the debts that the shareholders agree to pay of the absorbing corporation.

Question

Quizplus · Accepted Answer

In a merger, the surviving entity assumes all the liabilities and obligations of the absorbed corporation(s), making it responsible for all debts and obligations regardless of their nature or the extent of knowledge the surviving entity has about them.

The Surviving Entity in a Merger Situation Is ________