Which of the Following Is True Regarding Situations in Which

question 28

Multiple Choice

Which of the following is true regarding situations in which a court may order an involuntary dissolution of a corporation?

• A) A court may order an involuntary dissolution of a corporation under the following four circumstances: when the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, when the directors have abused their power, and when the corporation is insolvent.
• B) A court may order an involuntary dissolution of a corporation under the following three circumstances: when the corporation obtained its article of incorporation fraudulently, when the directors have abused their power, and when the corporation is insolvent.
• C) A court may order an involuntary dissolution of a corporation under the following three circumstances: when the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, and when the directors have abused their power.
• D) A court may order an involuntary dissolution of a corporation under the following three circumstances: when the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, and when the corporation is insolvent.
• E) A court may only order an involuntary dissolution of a corporation when the corporation is insolvent.

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Definitions:

Maximize Utility

An economic principle where individuals or firms attempt to obtain the highest possible satisfaction or benefit from their resources and choices.

Decision Making

The cognitive process of selecting a course of action from multiple alternatives.

Economist

A professional who studies, teaches, or practices economics, the science concerned with the production, distribution, and consumption of goods and services.

Stroop Effect

A phenomenon demonstrating the cognitive interference where the brain's reaction time slows down when it needs to deal with conflicting information.