Which of the Following Is True Regarding Quill's Suggestion That

question 29

Multiple Choice

Which of the following is true regarding Quill's suggestion that dissolution be implemented quickly in order to avoid claims by creditors?

• A) His suggestion was a good one because in that way, the claims could likely be avoided.
• B) His suggestion would not avoid claims because the law requires that creditors be allowed at least 120 days after dissolution in order to make a claim.
• C) Whether or not his suggestion will help depends on the corporation's articles of incorporation which set forth the time period during which creditors may file claims following dissolution.
• D) Whether or not his suggestion will help depends on the corporation's bylaws which set forth the time period during which creditors may file claims following dissolution.
• E) His suggestion was a good one only for debts outstanding for over 1 year; otherwise, the creditors have at least six months following dissolution in which to make claims.

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Definitions:

Direct Materials

Basic substances that can be directly linked and attributed to the creation of particular products or services.

Direct Labor

The work of factory employees that can be directly associated with converting raw materials into finished goods.

Total Manufacturing Costs

The aggregate expenses involved in the manufacture of products, including direct materials, direct labor, and manufacturing overhead.

Work In Process Inventory

Goods partially completed during the manufacturing process; not yet finished products.