When a Corporation Liquidates, It Performs Three Activities

question 19

Multiple Choice

When a corporation liquidates, it performs three activities. What is the general order of these activities in a plan of liquidation?

• A)pay debts, distribute property to shareholders, and wind up its affairs
• B)wind up its affairs, distribute property to shareholders, pay debts
• C)pay debts, wind up its affairs, and distribute property to shareholders
• D)wind up its affairs, pay debts, and distribute property to shareholders

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Definitions:

Primary Processes

The core activities that directly contribute to the production of goods or provision of services in an organization, such as manufacturing, assembly, and service delivery.

Value Chain

A series of activities carried out by a company to deliver a valuable product or service to the market.

Upstream Costs

Expenses incurred in the early stages of a product's lifecycle, typically including exploration and development costs.

Downstream Costs

Expenses incurred later in the production process or in relation to post-production activities.