Moya Corporation adopted a plan of liquidation last year. All but a nominal amount of Moya's assets are distributed to its shareholders within the year. Which of the following statements is not true?
A)The liquidation of Moya Corporation means the corporation has undergone dissolution.
B)Moya Corporation retains its state charter.
C)Moya Corporation's existence is preserved.
D)Moya Corporation has been liquidated for tax purposes.

Question

Quizplus · Accepted Answer

Liquidation does not necessarily mean dissolution. Dissolution is the legal process of ending a corporation's existence, while liquidation refers to the sale or distribution of a corporation's assets. In this scenario, Moya Corporation still retains its state charter and its existence is preserved, even though it has been liquidated for tax purposes.

Moya Corporation Adopted a Plan of Liquidation Last Year