Which of the Following Statements Is Incorrect

question 33

Multiple Choice

Which of the following statements is incorrect?

• A) If the company is limited by shares, members do not have to contribute more than the amount unpaid on the shares for which each is liable as a past or present member.
• B) Past members must contribute money for company debts which have been incurred after they cease to be members.
• C) Most liquidations in Australia do not have sufficient funds to pay creditors.
• D) In the absence of any guidance in the company's constitution, calls in advance with related interest will be repaid before any payments are made to shareholders.

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Definitions:

Legal Institutions

are established organizations within a society that develop, enforce, and interpret laws governing the behavior of individuals and groups.

Self-Directed Teams

Groups of employees who manage their own work and procedures without direct supervision.

Organizational Change

Describes alterations in a company's structure, strategies, operational methods, or culture, typically aiming for growth or improvement.

Strategic Plan

A long-term roadmap designed by an organization to guide its direction, set goals, and outline approaches to achieve those goals.