1) A private enterprise might choose to become a Canadian-controlled private corporation (CCPC) for the corporate tax advantages. These advantages include:

Select one:

a. Higher investment tax credits

b. Potential capital gains exemptions

c. Additional time to pay some types of taxes

d. All of the available choices

2) On January 1, 2018, Dons retained earnings amounted to $3,000,000. In June 2018, Don declared a cash dividend - common amounted to $1,000,000. Net income for the year ended December 31, 2018 was $600,000. On December 31, 2018, what amount should be reported as retained earnings?

Select one:

a. 3,750,000

b. 3,000,000

c. 2,800,000

d. 2,600,000

3) It is determined by the amount that investors are willing to pay for them. This means that the shares may be sold at a higher or lower price than what the original holder paid for them.

Select one:

a. Market Value

b. Salvage Value

c. Original Cost

d. Present Value

4)

Question text

Which of the following is TRUE about stock splits?

Select one:

a. Stock splits automatically result in an increase in retained earnings

b. Stock splits are done to increase the shares liquidity

c. Stock splits can only increase the number of shares outstanding. There is no such thing as a reverse stock split.

d. Stock splits are done to increase each shareholders percentage ownership in the company