When a Corporation Liquidates, It Performs Three Activities

question 78

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

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Definitions:

Clostridia

A genus of bacteria, some species of which are pathogenic, known for their ability to produce spores and thrive in anaerobic conditions.

Bioremediation

The process of using living organisms, such as bacteria or plants, to remove or neutralize contaminants from a polluted area.

Methogens

Microorganisms that produce methane as a byproduct of their metabolism, typically found in anaerobic environments.

Toxins

Poisonous substances produced by living organisms, often used for defense against predators or to capture prey.