Which of the Following Statements About Corporate Dissolution Is INCORRECT

question 56

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 state attorney general may dissolve a corporation for abuse of authority.
• D)A shareholder may petition a court to dissolve a "deadlocked" corporation.

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Definitions:

Investing Activity

Transactions involving the purchase and disposal of long-term assets and other investments, not including cash equivalents, part of a company’s cash flow statement.

Other Income

Revenue from non-primary business activities, such as rent, patents, or interest earnings, not related to the company's main business operations.

Gain on Sale

The profit realized when an asset is sold for a price higher than its book value.

Indirect Method

A cash flow statement methodology that adjusts net income for changes in non-cash transactions and working capital to calculate cash flow from operating activities.