John and George Are the Shareholders of a Private Provincial

question 5

Multiple Choice

John and George are the shareholders of a private provincial company,which has capital assets of $250 000.00.Lately,due to the recession,the company has not been doing well financially,but it is going to issue dividends of $50 000.00 each to John and George.A few days later the company declares bankruptcy.In this case the creditors of the company

• A)can recover the value of the dividends from John and George as shareholders.
• B)can look to the assets of the company.
• C)can recover the value of the dividends from John and George as directors.
• D)can look to the assets of the company and receive the value of the dividends issued to John and George.
• E)all of the above

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Definitions:

Top Managers

Individuals at the highest level of an organization's management who are responsible for setting strategic goals and making key decisions.

Staff Managers

are individuals who advise and support line managers by providing expert knowledge, services, and advice in their area of specialization.

Technical Expertise

Specialized knowledge or skills in a specific field or area of technology, acquired through education, training, or professional experience.

Line Managers

Supervisors or managers who are directly responsible for overseeing the day-to-day work of other employees.