After creditors are paid in a corporate dissolution, shareholders receive a dist

Question

After creditors are paid in a corporate dissolution, shareholders receive a distribution of the remaining assets _____.

Question 31 options:

Based on the dates of purchase of their shares

In proportion to their shares

Only if they were original investors in the corporation

Only if they are officers or directors of the corporation

Based on the dates of purchase of their shares

In proportion to their shares

Only if they were original investors in the corporation

Only if they are officers or directors of the corporation

Explanation / Answer

In proportion to their shares

After creditors are paid in a corporate dissolution, shareholders receive a distribution of the remaining assets _ in proportion to their shares__. As the remaining assets are being distributed among shareholders based on the proportion of their shares and their stockholdings along with any special stock preferences.

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