Once Properly Declared, the Effect of a Distribution Is

question 64

Multiple Choice

Once properly declared, the effect of a distribution is:

• A) it imposes personal liability on the directors who vote for it.
• B) it is revocable until actually paid.
• C) it imposes personal liability on the shareholders of a solvent corporation.
• D) that it is considered a debt the corporation owes to the shareholders.

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Definitions:

Perfectly Price Inelastic

A situation where the quantity demanded of a good or service does not change in response to a change in price.

Consumption

The use of goods and services by households.

Price Elastic

Price Elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating the sensitivity of consumers or producers to price changes.

Tax Revenue

The revenue that governments acquire from taxes.