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:

Alzheimer's Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and eventual loss of the ability to carry out simple tasks.

Down's Syndrome

A genetic disorder caused by the presence of all or part of an extra 21st chromosome, characterized by physical growth delays, characteristic facial features, and mild to moderate intellectual disability.

APP Gene

A gene on chromosome 21 that encodes the amyloid precursor protein (APP), which is thought to be involved in the pathogenesis of Alzheimer's disease.

Amyloid Precursor Protein

A protein that in humans is encoded by the APP gene, and is thought to be involved in the pathological process of Alzheimer's disease.