When a Corporation Liquidates, It Performs Three Activities

question 78

Multiple Choice

When a corporation liquidates, it performs three activities. What is the general order of these activities in a plan of liquidation?

• A) pay debts, distribute property to shareholders, and wind up its affairs
• B) wind up its affairs, pay debts, and distribute property to shareholders
• C) wind up its affairs, distribute property to shareholders, pay debts
• D) pay debts, wind up its affairs, and distribute property to shareholders

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Definitions:

Restaurant Chain

A group of related restaurants in different locations that share a common brand, identity, and ownership, offering a similar menu of food and drink items.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Media

Channels or systems of communication used to distribute content to a wide audience, including television, radio, newspapers, and the internet.

Monopoly

A situation in which there is only one individual or organization, without competitors, providing a particular good or service.