The Revised Act Permits a Corporation to Purchase,redeem,or Otherwise Acquire

question 19

Multiple Choice

The Revised Act permits a corporation to purchase,redeem,or otherwise acquire its own shares unless:

• A) the corporation's total assets after the distribution would be less than the sum of its total liabilities and the maximum amount that would be payable for all outstanding shares having preferential rights in liquidation.
• B) the corporation would be unable to pay its debts as they became due in the usual course of its business.
• C) Both of these.
• D) None of these.

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Definitions:

Legacy

Something transmitted by or received from an ancestor or predecessor from the past.

World Community

A term referring to the international aggregation of nations and peoples, often used to highlight global cooperation and interdependence.

Cold War

A period of geopolitical tension between the Soviet Union and the United States, along with their respective allies, from the end of World War II in 1945 until the dissolution of the Soviet Union in 1991, characterized by propaganda, espionage, and proxy wars but avoiding direct military conflict.

Iran-Contra Scandal

A political scandal in the United States during the 1980s involving the clandestine sale of weapons to Iran to fund Contra rebels in Nicaragua, contrary to U.S. law.