The Revised Act Permits a Corporation to Purchase,redeem,or Otherwise Acquire

question 32

Multiple Choice

The Revised Act permits a corporation to purchase,redeem,or otherwise acquire its own shares unless:

• A)the corporation's total assets after the distribution would be less than the sum of its total liabilities and the maximum amount that then would be payable for all outstanding shares having preferential rights in liquidation.
• B)the corporation would be unable to pay its debts as they became due in the usual course of its business.
• C)Both of the above.
• D)None of the above.

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Definitions:

Certifying

The process of formally validating the qualifications, capabilities, or quality of an individual or entity.

NLRA

Stands for the National Labor Relations Act, which is legislation enacted in 1935 in the United States to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Recognition Strikes

Work stoppages by employees aimed at forcing an employer to recognize their union as the official bargaining agent for the workforce.

Employer-Initiated

Actions or policies that are begun or implemented by employers within an organizational or labor context.