What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

Related Mcqs:

1. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

2. How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?

   A. Bankruptcy
   B. Default
   C. Total loss
   D. Crash

3. What is called the situation in which a debtor remains unable to pay his creditors in full ?

   A. Bankruptcy
   B. Default
   C. Total loss
   D. Crash

4. In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?

   A. Spreadsheet
   B. Splinter
   C. Family growth
   D. Butterfly

5. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

   A. Mutual arrangement
   B. Quid Pro quo
   C. Bilateral arrangement
   D. common interest

6. With whom would you associate the following quote” The business of business is business” ?

   A. Milton Friedman
   B. Adam smith
   C. Alfred Marshal
   D. Karl Marx

7. What is called interest payments plus repayments of principal to creditors ?

   A. Debt retirement
   B. Debt relief
   C. Debt service
   D. Payback

8. What is called bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts?

   A. Liquidator
   B. Solicitor
   C. Receiver
   D. Agent

9. Shareholders of a corporation elect individuals to carry out certain tasks that are establishment in the charter. What these individuals are called ?

   A. Management
   B. Board of Governor
   C. Top brass
   D. Board of Directors

10. Which company holds the world record for having the maximum number of shareholders ?

    A. Reliance Industries Ltd.
    B. British Gas
    C. General Motors
    D. State Bank