Shareholders or Directors May Wish for the Corporation to Lend

question 18

Multiple Choice

Shareholders or directors may wish for the corporation to lend them money as an indirect method to get back some of their investment. The CBCA prohibits this activity

• A) only when it would endanger a corporation's solvency, or reduce the value of its assets to less than the amount of its stated capital.
• B) under all circumstances.
• C) since it always jeopardises the position of existing creditors.
• D) but only for directors.
• E) but only for shareholders.

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Definitions:

Customers Served

The number of customers a business or service has provided for or sold to during a specific period, indicating the reach or impact of the business.

Revenue Formulas

Mathematical equations or models used to calculate the total income generated from sales of goods or services before any costs or expenses are deducted.

Patient-visits

An instance of a patient seeking medical services, often used in healthcare management to track and evaluate service demand and capacity planning.

Planning Budget

A financial plan that estimates future income, expenditures, and resources over a specific period, often used for setting performance benchmarks.