After creditors are paid in a corporate dissolution, shareholders receive a dist
ID: 370967 • Letter: A
Question
After creditors are paid in a corporate dissolution, shareholders receive a distribution of the remaining assets _____.
Question 31 options:
Based on the dates of purchase of their shares
In proportion to their shares
Only if they were original investors in the corporation
Only if they are officers or directors of the corporation
Based on the dates of purchase of their shares
In proportion to their shares
Only if they were original investors in the corporation
Only if they are officers or directors of the corporation
Explanation / Answer
In proportion to their shares
After creditors are paid in a corporate dissolution, shareholders receive a distribution of the remaining assets _ in proportion to their shares__. As the remaining assets are being distributed among shareholders based on the proportion of their shares and their stockholdings along with any special stock preferences.