Dividend Payment That Has the Effect of Making the Corporation

question 12

Multiple Choice

Dividend payment that has the effect of making the corporation insolvent, would fail to meet

• A) the solvency test.
• B) statutory reserve requirements.
• C) the maintenance of capital test.
• D) balance sheet convention.
• E) the accounting test.

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Definitions:

RNA Molecule

A nucleic acid present in all living cells. Its principal role is to act as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Ribosomes

Cellular structures that facilitate the translation of mRNA into proteins by linking amino acids together.

Ricin

A highly toxic protein derived from the seeds of the castor oil plant, Ricinus communis, used historically in bioterrorism and research.

DNA Template

A strand of DNA that serves as a guide for the synthesis of complementary RNA molecules during transcription.