Under which circumstances may a corporation dissolve?

• A. Upon reaching a specific number of employees
• B. If majority of stockholders vote for dissolution
• C. When it has no liabilities
• D. When it has achieved profit for three consecutive years

Answer: (B)

A corporation may dissolve under various circumstances, but one of the most common and straightforward methods is through a vote by the majority of stockholders. This process typically involves a formal meeting where stockholders express their opinions and cast their votes—if the majority supports dissolution, the corporation can initiate the process according to established legal procedures.

The involvement of stockholders in this decision is crucial because they are the owners of the corporation and have a significant stake in its future. This voting process ensures that the decision reflects the interests of those who have invested in the company. The other options may reflect scenarios that could influence a corporation's viability or operational decisions, but they do not directly pertain to the formal process of dissolution as clearly as the majority vote does.