Jerry Received a Check from McGregory Corporation as a Dividend

question 56

Multiple Choice

Jerry received a check from McGregory Corporation as a dividend on his preferred shares. Two days later, one of the corporate directors called him and said he would have to return the check since it was erroneously declared and the company would not be able to pay its day-to-day expenses. Jerry would:

• A) have to return the check because the company would be insolvent.
• B) have to return the check since it was erroneously declared.
• C) not have to return the check because Jerry acted innocently.
• D) not have to return the check because the board acted in good faith.

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Definitions:

Range Valve

A valve used in pneumatic or hydraulic systems to control the range of operation of a connected device.

Air Leakage

The unintentional escape of air from pneumatic systems, such as those found in air brake systems in vehicles, leading to reduced efficiency or performance.

High Range

A gear configuration in vehicles, particularly in those with 4WD or transmission systems, that provides higher speed but lowers torque.

Mechanical Road Speed Signal

A signal generated by a mechanical device, often used in older vehicles, to indicate the speed at which the vehicle is moving.