The ________ prevents a corporation from paying to common shareholders a dividend that will impair the liquidation rights of preferred shareholders.
A)solvency test
B)balance sheet test
C)business judgment rule
D)liquidity test

Question

Quizplus · Accepted Answer

The balance sheet test prevents a corporation from paying to common shareholders a dividend that will impair the liquidation rights of preferred shareholders.

The ________ Prevents a Corporation from Paying to Common Shareholders