In a complete liquidation of a corporation, which of the following is false?
A)All stock of the liquidating corporation is canceled or redeemed.
B)The corporation ceases to be a going concern.
C)The corporation divests itself of substantially all its properties.
D)The liquidation of a corporation means it has undergone dissolution.

Question

Quizplus · Accepted Answer

Liquidation refers to the process of selling off a company's assets to pay creditors and distributing the remaining assets to the shareholders, which leads to the corporation ceasing operations and canceling its stock. However, liquidation does not necessarily mean the corporation has undergone dissolution. Dissolution is a separate legal process that involves the formal disbanding of a corporation, which may or may not follow liquidation.

In a Complete Liquidation of a Corporation, Which of the Following