What is the consequence of a corporate consolidation?

When two or more corporations consolidate, they combine to form a completely new entity. This process involves the merging of assets, liabilities, and operations from the original companies into a single corporate structure. The resulting corporation typically takes on a new name and legal identity, which distinguishes it from the previously existing ones.

This new entity will have its own governing documents and will be recognized by the state as an independent corporation. The original corporations cease to exist as separate entities once the consolidation is completed, making this option the most accurate representation of the consequences of corporate consolidation.

In contrast, the other options misrepresent the nature of consolidation. For instance, if the original corporations were to continue to exist, that would not accurately reflect the outcome of a consolidation. Similarly, dividing assets would imply a separation rather than a combination, and suggesting that management remains unchanged overlooks the structural changes that typically accompany the creation of a new corporate entity.