Fact Pattern 41-1B (Questions B5-B7 apply)
DIY Fasteners Company decides to consolidate its operations with Evergrip Studs, Inc., to form Fit-Rite Bolts & Screws Inc.
-Refer to Fact Pattern 41-1B. Evergrip owed money to Guaranty Bank and other creditors. After the consolidation, Fit-Rite must pay
A) all of Evergrip's debts.
B) half of Evergrip's debts.
C) none of Evergrip's debts.
D) only debts that Evergrip incurred after consolidation was proposed.

Question

Quizplus · Accepted Answer

After a consolidation, the new entity (Fit-Rite Bolts & Screws Inc.) assumes all the liabilities and debts of the consolidating companies, including those of Evergrip.

Fact Pattern 41-1B (Questions B5-B7 Apply)