Which of the Following Statements About Corporate Dissolution Is INCORRECT

question 8

Multiple Choice

Which of the following statements about corporate dissolution is INCORRECT?

• A) A corporation cannot be forced into dissolution by a creditor.
• B) A corporation will be dissolved if all shareholders vote to do so.
• C) A secretary of state may commence a proceeding to dissolve a corporation for failure to pay taxes.
• D) A shareholder may petition a court to dissolve a "deadlocked" corporation.

---

Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Penalty Unenforceability

The legal concept that a penalty clause within a contract may not be enforceable if it is deemed excessively punitive rather than a genuine pre-estimate of loss.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform certain obligations of a contract.

Damages Determination

The process by which courts calculate the amount of money to be awarded to a party in a lawsuit for losses or injuries suffered.