On Which of the Following Dates, a Company Incurs Liability

question 77

Multiple Choice

On which of the following dates, a company incurs liability for a dividend?

• A) The date of record
• B) The date of payment
• C) The date of liquidation
• D) The date of declaration

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Definitions:

Common Law

A body of law based on judicial decisions and customs, as opposed to statutory laws.

Void Contract

An agreement that lacks legal validity or is unenforceable by law from the moment it is created, due to reasons such as illegality or incapacity of one party.

Voidable Contract

A valid contract that can be legally voided at the option of one of the parties without penalty.

Quasi-contract

A legal concept that is treated as a contract so that one party is not unjustly enriched at the expense of another, even though no actual contract exists.