CSCI-FINA 739 - Chapter 11 Class Sample Questions 1. What is the definition of a sole proprietorship? a) Involves one or more persons running his or her own business and the individual is taxed on earnings at their personal income tax rate b) Involves one or more persons contributing to the business, whether it be capital or expertise required to run the enterprise c) The sole proprietor cannot participate in the daily business activity and liability is limited to the partner's investment d) Involves one person running his or her own business and the individual is taxed on earning at their personal income tax rate 2. All of the following describe private corporations, except? a) Restriction on the right of shareholders to transfer shares b) Limitation on the number of shareholders to no more than 50 c) No members of the public can subscribe for the shares d) Shares are listed on a stock exchange or trade o-t-c 3. A corporation is regulated by all of the following by laws, except? a) Federal or provincial act under which its charter is issued b) The company's charter c) Its by-laws d) Its shareholders

1. What is the definition of a sole proprietorship? a) Involves one or more persons running his or her own business and the individual is taxed on earnings at their personal income tax rate b) Involves one or more persons contributing to the business, whether it be capital or expertise required to run the enterprise c) The sole proprietor cannot participate in the daily business activity and liability is limited to the partner's investment d) Involves one person running his or her own business and the individual is taxed on earning at their personal income tax rate 2. All of the following describe private corporations, except? a) Restriction on the right of shareholders to transfer shares b) Limitation on the number of shareholders to no more than 50 c) No members of the public can subscribe for the shares d) Shares are listed on a stock exchange or trade o-t-c 3. A corporation is regulated by all of the following by laws, except? a) Federal or provincial act under which its charter is issued b) The company's charter c) Its by-laws d) Its shareholders