If a Company Director Allows a Company to Trade While

question 20

Multiple Choice

If a company director allows a company to trade while insolvent,the director will:

• A)become personally liable for the company's debts incurred before the company became insolvent.
• B)not be personally liable for any of the company's debts.
• C)become personally liable for the company's debts incurred after the point of insolvency is reached.
• D)normally be paid a bonus after the end of the financial year.

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Definitions:

Probability Range

The spread between values within which a random variable is expected to fall with a certain probability.

Returns

The profit or loss derived from an investment over a specified period, often expressed as a percentage.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at regular intervals every three months.