Dissolution That Is Judicial May Be Brought About When

question 39

Multiple Choice

Dissolution that is judicial may be brought about when:

• A) the shareholders of a closely held corporation adopt a unanimous agreement to dissolve.
• B) a shareholder brings a proceeding because the directors are deadlocked in management of the corporate affairs and the corporation is suffering irreparable injury.
• C) the corporation is without a registered agent for over 60 days.
• D) the board of directors creates a resolution approved by shareholders to dissolve.

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Definitions:

Δ Stockholders' Equity

The change in the total value of a company's equity over a specific period, influenced by earnings, dividends, and stock issues.

Financing Activities

Transactions and events where a company generates or repays capital to finance its operations.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and equity of an entity at different points in time for comparison.

Cash Flows

Represents the total amount of money being transferred into and out of a business, especially as affecting liquidity.