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:

Deep

Having a large distance to the bottom from the surface or a significant extent downward.

Metamorphism

The process by which the structure, composition, and physical properties of rocks are changed by heat and pressure without melting.

Heating by Magma

The process by which surrounding rock and material are heated due to the intrusion or presence of magma, which can lead to metamorphism or melting.

Shearing at Depth

Deformation of rock and soil layers deep within the Earth's crust caused by lateral movement or stress.