Which of the Following Is NOT a Basis for Involuntary

question 30

Multiple Choice

Which of the following is NOT a basis for involuntary dissolution?

• A) By the Secretary of State,if it is established that the corporation failed to pay its franchise tax
• B) By a shareholder,if the directors are deadlocked and the shareholders cannot break the deadlock
• C) By the shareholders,if they dissent to a merger and are asserting their appraisal rights
• D) None of these

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Definitions:

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for any depreciation, amortization, or impairment costs.

Gain

The financial profit obtained from a transaction or investment, exceeding the initial cost.

Loss

Occurs when a company's expenses exceed its revenues, resulting in a negative profit.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.