Before a Company Can Be Would Up by Its Shareholders

question 16

Multiple Choice

Before a company can be would up by its shareholders, its directors must make a declaration of solvency.This is a declaration that:

• A)The shareholders believe that the company is insolvent.
• B)The directors believe that the company will be able to pay all its debts within 12 months after the commencement of the winding up.
• C)The directors believe that the company has no significant debts.
• D)The directors believe that the company should not be wound up.

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Definitions:

Test Statistic

A value derived from sample data used in hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between specified populations or parameters.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis by stating there is a statistically significant effect or relationship between variables.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical hypothesis testing.