The Activities Performed When Winding Up the Affairs of a Dissolving

question 9

Multiple Choice

The activities performed when winding up the affairs of a dissolving corporation do not include

• A) paying the outstanding debts of the cor- poration.
• B) collecting the assets of the corporation.
• C) distributing the remaining assets of the corporation to the shareholders.
• D) filing articles of dissolution with the Securities and Exchange Commission.

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Definitions:

Joint Liability

Shared liability. In partnership law, partners incur joint liability for partnership obligations and debts.

Fiduciary Duty

A legal obligation of one party to act solely in the best interest of another party, such as a trustee for a beneficiary.

Partnership's Profits

Partnership's profits refer to the share of income generated by a business partnership that is distributed among its partners according to the terms of their agreement.

Personal Income Tax

A tax levied on the income of individuals, which varies according to the income level and financial situation of the taxpayer.