At a Time When Blackbird Corporation Had E & P

question 68

True/False

At a time when Blackbird Corporation had E & P of $700,000 and 1,000 shares of stock outstanding, the corporation distributed $300,000 to redeem 400 shares of its stock.The transaction qualified as a disproportionate redemption for the shareholder.Blackbird's E & P is reduced by $280,000 as a result of the distribution.

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Definitions:

Union Membership

The status of being a member of a labor union, an organization that represents workers' interests to management in industries and businesses for purposes such as negotiating wages and working conditions.

Labor Union Membership

The enrollment of workers in an organization (labor union) that represents them in negotiations with employers over wages, benefits, and working conditions.

Collective Bargaining Agreement

A written legal contract between an employer and a union representing the employees, containing terms of employment, working conditions, and wage rates.

Strikes

Work stoppages initiated by employees to protest against policies or conditions of their employers.