When It Is Unlawful to Declare Dividends Because of a Deficiency

question 17

Multiple Choice

When it is unlawful to declare dividends because of a deficiency in the capital fund, and yet the shareholders want a quick pay- out, then

• A) Revenue Canada can issue "not withstanding" tax credits.
• B) shareholders can lend money to the corporation and receive interest payments in return.
• C) the corporation can re- capitalise at a lower amount.
• D) the corporation needs to earn enough profits to restore the deficiency.
• E) wages can be paid to officers instead of dividends.

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Definitions:

Nursing Care Measures

Actions and interventions carried out by nurses to ensure the well-being and recovery of patients, including monitoring, treatment administration, and support.

Dyspneic

Experiencing difficulty in breathing or shortness of breath, a symptom that can be associated with various health conditions.

Hard of Hearing

A term used to describe individuals with partial hearing loss who may benefit from the use of hearing aids, but are not completely deaf.

Tracheostomy

Procedure whereby a surgical incision is made into the trachea and a short artificial airway (a tracheostomy tube) is inserted.