Once properly declared, the effect of a distribution is:
A) it is revocable until actually paid.
B) that it is considered a debt the corporation owes to the shareholders.
C) it imposes personal liability on the directors who vote for it.
D) it imposes personal liability on the shareholders of a solvent corporation.

Question

Quizplus · Accepted Answer

Once a distribution is declared, it is considered a debt that the corporation owes to its shareholders, meaning the corporation is obligated to pay the declared amount to the shareholders.

Once Properly Declared, the Effect of a Distribution Is