1. Like other corporations, Langden Homes Inc. can extend its operations through

a. liquidating and distributing its assets.

b. buying the assets of, or a controlling interest in, another corporation.

c. filing articles of dissolution with the state.

d. appointing a receiver to wind up the corporate affairs.

2. Bonded Paper Corporation merges with Carfen Cards Corporation, with Bonded Paper Flavor absorbing Carfen Cards. After the merger

a. a different, new entity is the surviving corporation.

b. Bonded Paper and Carfen Cards are both surviving corporations.

c. Bonded Paper is the surviving corporation.

d. Carfen Cards is the surviving corporation.

3. A merger between Beatrice Tea Corporation and Camden Tea Inc. can be expressed as Beatrice Tea plus Camden Tea equals

a. Camden Tea Inc.

b. Beatrice Tea Corporation.

c. Camden Tea Inc. and Beatrice Corporation

d. Beatrice Corporation and Camden Tea Inc.

4. Gilbert Electric Corporation (GEC) has a right of action against Wire World, Inc.

a. Gilbert Electric.

b. Southern Michigan.

c. Wire World.

d. no one.

Fact Pattern 41-1 (Questions 5-7 apply)

Drako's Cakes Fasteners Company decides to consolidate its operations with Everett's Flour, Inc., to form Flora's Baking, Inc.

5. Refer to Fact Pattern 41-1. Everett had rights in certain property. After the consolidation, Flora acquires the rights

a. automatically.

b. only after completing certain additional statutory procedures.

c. only if Everett's former shareholders expressly approve.

d. only if the acquisition is a specified result of the consolidation.

6. Refer to Fact Pattern 41-1. Everett owed money to Grand Bank and other creditors. After the consolidation, Flora must pay

a. all of Everett's debts.

b. half of Everett's debts.

c. none of Everett's debts.

d. only debts that Everett incurred after consolidation was proposed.

7. Refer to Fact Pattern 41-1. The articles of consolidation differ from Drako's articles of incorporation. The articles

a. are replaced by Everett's articles of incorporation.

b. are replaced by the articles of consolidation.