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Which of the Following Statements Best Describes How Corporate Law

Question 2

Multiple Choice

Which of the following statements best describes how corporate law protects creditors?


A) Creditors can enforce restrictions on the ability of the corporation to pay dividends to shareholders.
B) Corporate law does not protect creditors.
C) Creditors must protect themselves by contract.
D) Corporate law rules restricting the payment of dividends to shareholders unless certain financial tests are satisfied protect creditors by keeping money in the corporation.
E) Directors have a duty to protect the interests of creditors.

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