When a corporation is dissolved:
A) it can issue capital stock to existing shareholders.
B) it can continue to sue third-parties and other organizations.
C) it can form contracts for the purpose of converting assets into cash.
D) it can transfer property to other corporations.

Question

Quizplus · Accepted Answer

When a corporation is dissolved, it can perform activities necessary to wind up its affairs, such as converting assets into cash to pay off debts and distribute any remaining assets to shareholders. Forming contracts for this purpose is part of the winding-up process.

When a Corporation Is Dissolved