Before a Company Can Be Would Up by Its Shareholders

question 10

Multiple Choice

Before a company can be would up by its shareholders, its directors must make a declaration of solvency.This is a declaration that:

• A)the shareholders believe that the company is insolvent.
• B)the directors believe that the company will be able to pay all its debts within 12 months after the commencement of the winding up.
• C)the directors believe that the company has no significant debts.
• D)the directors believe that the company should not be wound up.

---

Definitions:

Evaporation

The process where liquid water transforms into vapor and enters the atmosphere.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the surface of the Earth, including rain, snow, sleet, and hail.

Rain Forests

Dense, usually tropical forests, characterized by high rainfall, rich biodiversity, and a canopy structure with multiple layers of vegetation.

Equator

An imaginary line around the middle of the Earth, equidistant from the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.