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When Protecting Corporate Creditors, How Does the "Maintenance of Capital

Question 42

Multiple Choice

When protecting corporate creditors, how does the "maintenance of capital test" differ from the "solvency test"?


A) It is the only one found in the CBCA.
B) It is the one which has a "capital fund" to preserve.
C) They are similar but referred to differently in different provinces.
D) Simply a matter of legal jurisdiction over type of corporation.
E) It is less restrictive on the payment of dividends.

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