In spite of the fact that a corporation does NOT meet the solvency test,it can
A)buy back shares.
B)pay wages to employees.
C)pay dividends.
D)make loans to directors.
E)none of the above

Question

Quizplus · Accepted Answer

Even if a corporation does not meet the solvency test, it can still pay wages to employees as it is necessary for their ongoing operations. However, buying back shares, paying dividends, and making loans to directors would not be feasible or advisable as they would further reduce the corporation's solvency.

In Spite of the Fact That a Corporation Does NOT