Question

21 The Board of Directors of Microsoft, a corporation, voted to distribute after tax profits of the corporation to its shareholders. This type of distribution is: a. a merger b. derivative C. d. a dividend a quorunm 22. Officers and directors of a corporation owe to the corporation and its shareholders, both the Duty of Loyalty, and the Duty of Care. Which of the following actions may constitute a violation of the Duty of Loyalty a.self-Dealing with the corporation b. competition with the corporation C. usurping a corporate opportunity d. allof the above 23 Tom owns ABC Sales, a sole proprietorship. Tom's potential liability for debts of the business is a. unlimited b. limited to the amount of his initial investment, plus any profits c. imited by statute d. lmited to the amount of his initial investment A Judgement entered in Court against a Sole Proprietorship can be collected fromm which of the following sources: 24 assets of the sole proprietorship assets of the owner, which he earned from the operation of the business a. b. c. assets of the owner, which he acquired before starting the business d. al of the above

Answer 1

21A) D A dividend is a process of distributing by a corporation to its shareholders, usually as a distribution of profits. This can be done in two-way process that is double taxation. The process can be explained as the company gives the profit after paying tax as the profit after tax is dividing, so the thx will be lived on dividends to. 22A) D 23A) A But he need to pay the country taxes and after getting certain amount of profit he need to register for different type pf taxes for example in united kingdom after exceeding 83 thousand pounds he need to register for value added tax 24A) D As the Sole proprietorship the judgments differs from state to state, but they can take his assets which he has and earned from the business as the basic rule that he himself is responsible for profits and debts.