Multiple Choice
Which of the following is one of the requirements a corporation must meet under the Canada Business Corporations Act to declare and pay a cash dividend?
A) The net realizable value of its assets must exceed the total of its liabilities but not its share capital.
B) It must have sufficient cash or resources to be able to pay its liabilities before the dividend is declared and paid.
C) The net realizable value of its assets must exceed its share capital but not the total of its liabilities.
D) It must have sufficient cash or resources to be able to pay its liabilities after the dividend is declared and paid.
Correct Answer:
Verified
Correct Answer:
Verified
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