In a Complete Liquidation of a Corporation, Which of the Following

question 47

Multiple Choice

In a complete liquidation of a corporation, which of the following is false?

• A)All stock of the liquidating corporation is canceled or redeemed.
• B)The corporation ceases to be a going concern.
• C)The corporation divests itself of substantially all its properties.
• D)The liquidation of a corporation means it has undergone dissolution.

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Definitions:

Official Authorization

Formal approval granted by an authorized entity, often required for specific actions or operations.

Corporation

A legal entity (or a legal person) created by either a state or federal statute authorizing individuals to operate an enterprise.

Bylaws or Regulations

Rules or laws established by an organization or community to regulate its actions and enforce standards.

Annual Shareholders Meeting

A yearly gathering of the shareholders of a company to discuss its performance, elect the board of directors, and make decisions on other corporate matters.