Which of the following is NOT a typical reason for corporate dissolution?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

Choosing corporate dissolution as a result of a decision to merge is accurate because merging does not signify the end of a corporation's existence; instead, it often results in the continuation of a new entity or the consolidation of existing entities. In a merger, two or more companies come together to form a new corporation or one absorbs the other, allowing business operations to persist under a unified structure.

In contrast, the other options represent common scenarios leading to corporate dissolution. A voluntary decision by shareholders typically involves a formal vote to dissolve the corporation due to various reasons, like financial struggles or strategic shifts. An involuntary court order may occur due to legal violations or failure to comply with statutory obligations, prompting the court to dissolve the entity. Administrative dissolution by the state can be initiated if a corporation fails to meet certain legal requirements, such as filing annual reports or paying taxes, ultimately leading to the forfeiture of its corporate status.

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