In a consolidation, which of the following is true regarding the property of the original corporations?
A) It must be sold and distributed to the respective shareholders.
B) It must be held in trust for at least one year to satisfy claims of creditors.
C) It must be held in trust for at least six months to satisfy claims of creditors.
D) It must be placed within the jurisdiction of the secretary of state for at least one year in order to satisfy claims of creditors.
E) It is acquired by the new corporation.

Question

Quizplus · Accepted Answer

In a consolidation, the property of the original corporations is acquired by the new corporation that emerges from the consolidation process. This allows the new entity to continue operations and fulfill obligations without the need to liquidate assets and distribute them to shareholders or hold them in trust for creditor claims.

In a Consolidation, Which of the Following Is True Regarding