When Assets Are Distributed to the Shareholders of a Corporation

question 147

Multiple Choice

When assets are distributed to the shareholders of a corporation, these distributions are termed

• A) depletions.
• B) consumptions.
• C) dividends.
• D) a credit line.

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Definitions:

Contract

A legally-binding agreement between two or more parties that outlines obligations and rights of the parties.

Holder in Due Course

A party possessing a negotiable instrument (like a check) in good faith and for value, with certain protections against claims and defenses.

Payable to Cash

A term indicating that a check or other document is made out to "Cash" instead of a specific payee, allowing anyone who holds it to cash it.

Voluntary Transfer

The intentional conveyance of property or rights from one party to another without coercion or force.