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:

Epithelium

One of the four primary tissue types. Nipple refers to the tiny capillary-containing connective tissue in the lips, which is where the term was first used. The use of the term was later expanded to include all covering and lining surfaces of the body.

Neurohypophysis

Also known as the posterior pituitary, it is a part of the brain that releases hormones directly into the blood under the command of the hypothalamus.

Adenohypophysis

The anterior lobe of the pituitary gland responsible for secreting several key hormones, including growth hormone and ACTH, which regulate various physiological processes.

Infundibulum

A funnel-shaped structure; it can refer to part of the fallopian tube close to the ovary, or to a structure in the brain that connects the hypothalamus to the pituitary gland.