The Courts May Grant a Petition of Involuntary Dissolution If

question 17

Multiple Choice

The courts may grant a petition of involuntary dissolution if shareholders:

• A) do not approve of fundamental changes of the board.
• B) show that the corporation has not kept adequate records or filed annual reports.
• C) did not receive their dividends.
• D) show that corporate assets are being squandered.

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Definitions:

Perfectly Elastic

Describes a situation in demand or supply where quantity changes by an infinite amount in response to any change in price.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing the surplus generated from business operations beyond the normal returns.

Hired Managers

Individuals employed by the owners of a firm to run the day-to-day operations and make business decisions.

Business Corporations

Legal entities that are formed to engage in business activities, owned by shareholders who share in the profits but are typically not liable for the company's debts.