Which of the following is true regarding a dissolved corporation?

Question

Quizplus · Accepted Answer

When a corporation is dissolved, it means that it is no longer in existence. In a voluntary dissolution, the corporation must wind up its affairs, liquidate its assets, and distribute the proceeds to the claimants. Only after these steps are completed can the corporation be considered terminated. Therefore, option D is true. Option A is incorrect because a dissolved corporation does not continue its corporate existence. Option B is partly correct, but incomplete, as a dissolved corporation may not carry on any regular business, but may still conduct business related to winding up its affairs. Option C is incorrect, as the liquidation process is usually carried out by the corporation's directors or shareholders. Option E is incorrect, as termination occurs only after the liquidation of assets, not as soon as assets are liquidated.

Which of the Following Is True Regarding a Dissolved Corporation