Which of the Following Would Be a Justification for Involuntary

question 21

Multiple Choice

Which of the following would be a justification for involuntary dissolution of a corporation by a creditor?

• A)Misapplication or waste of corporate assets.
• B)Directors are in conflict,deadlock cannot be broken by shareholders,and the corporation faces ruin.
• C)Corporation is insolvent and not paying its debts.
• D)Directors are acting illegally or unfairly.

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Definitions:

Private-Sector Risk

The risk associated with the non-governmental sector, encompassing uncertainties in business environments, market dynamics, and financial operations.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating behavior of the marketplace where individuals pursuing their own interest often benefit society as a whole.

Government Resource Allocation

The process by which government entities decide how to distribute resources and funds between various projects or sectors.

Competitive Forces

The external factors that influence the competitive position of a firm within an industry, including competition from rivals, potential new entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.