After Paying Off All Creditors in a Liquidation There Is

question 9

Multiple Choice

After paying off all creditors in a liquidation there is $21 655 available for shareholders.Preference share capital is $20 000 and ordinary share capital is $20 625.The amount of the deficiency to be borne by ordinary shareholders is:

• A)$18 970;
• B)$20 625;
• C)$20 000;
• D)$21 655.

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Definitions:

Industrial North

The region in a country, historically in the United States, known for its heavy industry and manufacturing, contrasting with the agrarian South.

Protective Tariffs

Tariffs imposed by a country to protect its domestic industries from foreign competition by increasing the cost of imported goods.

Trade Deficit

A situation that occurs when a country imports more goods and services than it exports.

Import

Goods or services brought into one country from another for the purpose of sale.