1. Which of the following statements about Labour Sponsored Venture Capital Corporations (LSVCCs) are true?

A. Eligible investments are restricted to taxable Canadian businesses active in Canada.

B. LSVCCs are considered hybrid securities. They are speculative and offer tax benefits.

C. LSVCCs must be held for a specified period or the tax credits will be recaptured.

D. Unlike mutual funds, LSVCCs are not restricted to 10% ownership in each company.

2. which one of the following describes a tax advantage provided by index funds?

A) Managers structure portfolios to eliminate income from dividends and interest.

B) Managers trade infrequently within the portfolio, generating lower capital gains.

C) Managers reduce taxable distributions by reporting high management expense ratios.

D) Managers trade frequently within the portfolio, generating large capital gains.