Question
Fact Pattern: Drako's Cakes Fasteners Company decides to consolidate its operations with Everett's Flour, Inc., to form Flora's Baking, Inc. 6. Refer to Fact Pattern
Fact Pattern: Drako's Cakes Fasteners Company decides to consolidate its operations with Everett's Flour, Inc., to form Flora's Baking, Inc.
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.
c. effectively prevent the consolidation.
d. prevail.
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