Fact Pattern 41-2
Shale Oil Corporation combines its assets and debts with those of Tierra Frakking Company to form Unified Resources, Inc. Shale and Tierra cease to exist.
-Refer to Fact Pattern 41-2. The formation of Unified Resources is
A) a consolidation.
B) a merger.
C) a purchase of assets.
D) a share exchange.

Question

Fact Pattern 41-2​
Shale Oil Corporation combines its assets and debts with those of Tierra Frakking Company to form Unified Resources, Inc. Shale and Tierra cease to exist.
-Refer to Fact Pattern 41-2. The formation of Unified Resources is​
A) ​a consolidation.
B) ​a merger.
C) ​a purchase of assets.
D) ​a share exchange.

Quizplus · Accepted Answer

A consolidation occurs when two or more companies combine to form a new entity, and the original companies cease to exist, as is the case with Shale Oil Corporation and Tierra Frakking Company forming Unified Resources, Inc.

Fact Pattern 41-2​ Shale Oil Corporation Combines Its Assets and Debts with Those

Fact Pattern 41-2 Shale Oil Corporation Combines Its Assets and Debts with Those