When It Is Unlawful to Declare Dividends Because of a Deficiency

question 7

Multiple Choice

When it is unlawful to declare dividends because of a deficiency in the capital fund and yet the shareholders want a quick pay-out,then

• A)Revenue Canada can issue "not withstanding" tax credits.
• B)the corporation needs to earn enough profits to restore the deficiency.
• C)shareholders can lend money to the corporation and receive interest payments in return.
• D)the corporation can re-capitalize at a lower amount.
• E)wages can be paid to officers instead of dividends.

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Definitions:

Negotiate

To attempt to reach an agreement or compromise through discussion with others, particularly in the context of business, politics, or international relations.

Equal Military

The principle of providing all members of the armed forces with equal opportunities, treatment, and conditions, regardless of their background.

Military Surge

A strategy that involves the rapid deployment of additional forces to accomplish a specific military objective.

Violent Insurgency

Armed rebellion against an existing government or authority, often characterized by acts of violence and terrorism to achieve political goals.