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If a Company Borrows Funds and Subsequently Ceases Operations

Question 57

Multiple Choice

If a company borrows funds and subsequently ceases operations,


A) shareholders have immediate claim on the assets of the corporation.
B) shareholders have no claim on the assets of the corporation.
C) shareholders have to pay all debt first before claiming the assets of the corporation.
D) shareholders have only a residual claim on the assets of the corporation.

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