Redemption of Shares Is Not Permitted If the Corporation

question 57

Multiple Choice

Redemption of shares is not permitted if the corporation:

• A) is likely to be rendered insolvent.
• B) asks for an injunction.
• C) has outstanding treasury shares.
• D) would, by that action, reduce total assets below the stated capital amount.

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Definitions:

Retirement Fund

A financial arrangement designed to replace employment income upon retirement, often composed of contributions from employees, employers, or both.

Employee Earnings

The total compensation an employee receives, including wages, salaries, bonuses, and other forms of payment, before any deductions.

W-3 Form

An IRS tax form used in the United States to transmit a summary of all W-2 forms issued by an employer to the Social Security Administration.

FICA-OASDI

The portion of Social Security tax collected under the Federal Insurance Contributions Act, dedicated to funding the Old Age, Survivors, and Disability Insurance program.