In Spite of the Fact That a Corporation Does Not

question 6

Multiple Choice

In spite of the fact that a corporation does not meet the solvency test,it can

• A)buy back shares.
• B)pay wages to employees.
• C)pay dividends.
• D)make loans to directors.
• E)none of the above

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Definitions:

Executive Pay

Compensation awarded to top-level management and executives, including salaries, bonuses, stock options, and other benefits.

Tax Advantages

Financial benefits derived from tax laws that lessen the tax burden on individuals or businesses in certain situations.

Retirement Plans

Financial arrangements designed to replace employment income upon retirement, which may include pensions, savings plans, and government benefits.

Bonuses

Additional financial compensation awarded to employees as an incentive for superior performance, achievement of targets, or as part of profit-sharing arrangements.