CHOOSE THE CORRECT ANSWER

1.) How are liquidation expenses treated during liquidation process?

a.) As a loss of the partnership

b.) To be treated as capital deficiency

c.) To be paid by partners from their personal money

d.) As a reduction in the capital balances of the partners

2.) It is the legal right to apply all or part of a partner's loan to the partnership against capital deficiency.

a.) Free interest

b.) Right of offset

c.) Restricted interest

d.) Right of refusal

3.) The Securities and Exchange Commission 25%, 25% rule means that:

a.) at least 25% of authorized has been subscribed and 25% of subscribed has been paid

b.) at least 25% of the total subscriptions has been paid

c.) None of the above

d.) at least 25% of the total authorized share capital has been subscribed

4.) The par value of a share capital

a.) all of these

b.) is usually different from its market value

c.) is an arbitrary amount assigned to a share of stock

d.) is often higher for preference share than for ordinary share