The 1984 Revised Model Business Corporation Act would potentially allow a corporation to have negative book value of net assets after an asset distribution occurred.

Question

Quizplus · Accepted Answer

The 1984 Revised Model Business Corporation Act allows for a corporation to distribute its net assets to shareholders, which could potentially result in a negative book value of net assets. This is because the total amount of assets distributed may have exceeded the total amount of assets on the corporation's books.

The 1984 Revised Model Business Corporation Act Would Potentially Allow