Several years back Dean Pigeon with two friends invested $300 000 equity capital into a new corporation.As it turns out,they have more capital in the business than they can profitably use.Will the CBCA allow them to take out the excess capital?
A) Yes,it will,provided the corporation can satisfy the court that the capital is truly unutilized.
B) Yes,it will,provided the corporation has no creditors.
C) No,it will not,since the excess is not accumulated retained earnings.
D) Yes,it will,as long as the corporation can satisfy both parts of the solvency test.
E) No,it will not,because a "capital fund" is not available to shareholders.
Correct Answer:
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