Directors May Become Personally Liable to the Corporation for Deficiencies

question 30

Multiple Choice

Directors may become personally liable to the corporation for deficiencies if,when they pay out dividends,the corporation cannot meet

• A)a shortage of working capital.
• B)the test of bankruptcy.
• C)a scheduled bond redemption.
• D)current corporate indebtedness.
• E)the solvency test.

Explore the relationship between education level and civic engagement.

Analyze the impact of work-life balance and support networks on personal and professional success.

Understand the legal implications of practicing law without a license.

Identify and explain key legal concepts and agreements, such as nondisclosure agreements, usury, and agreements to escape liability.

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Definitions:

Inventory

Raw materials, work-in-progress, and finished goods that are considered assets and intended for sale in the ordinary course of business.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations and growth.

Accounts Receivable

Amounts payable to a firm by its buyers for items or services that have been supplied but are still unpaid.

Capital Structure

Capital Structure is the mix of debt and equity financing a company uses to fund its operations and growth.