4. John Dough owns 100 percent of the shares of Doughboy Ltd. His wife, Kneada Dough, owns 100 percent of the shares of Yeast Ltd. and 100 percent of the shares of Flour Inc. Which of the following statements is correct?

a) Doughboy and Yeast are associated. b) Flour and Yeast are associated. c) Doughboy and Flour are associated. d) Doughboy is associated with both Yeast and Flour.

5. Which of the following statements related to exempt and zero-rated supplies is correct?

a) Both zero-rated and exempt supplies are taxable at 0.0 percent. Expenditures related to zero-rated supplies are eligible for input tax credits and those related to exempt supplies are not. b) Zero-rated supplies are taxable at 0.0 percent, while exempt supplies are not taxable. Expenditures related to both zero-rated and exempt supplies are eligible for input tax credits. c) Zero-rated supplies are taxable at 0.0 percent, while exempt supplies are not taxable. Expenditures related to zero-rated supplies are eligible for input tax credits and those related to exempt supplies are not. d) Both zero-rated and exempt supplies are taxable at 0.0 percent. Neither expenditures related to zero-rated supplies nor those related to exempt supplies are eligible for input tax credits.

6. Which of the following corporations would NOT be considered a resident of Canada?

a) Dram Inc. was incorporated in Alberta in 2005. While it has operations in both the U.S. and Canada, its management has always been located in New York. b) Craser Ltd. was incorporated in Ontario in 2010. All of its business activities are in Canada and its management is located in Toronto. c) Alor Inc. was incorporated in British Columbia in 2004. While most of its operations are in Canada, management is located in Seattle. d) Exeter Ltd. was incorporated in Montana in 2011. However, its management has always been located in Canada.