Question 21 (1 point)

Shareholders of corporations are not liable to third parties for debts incurred by the business operated by the corporation because...

Question 21 options:

	the directors always take the fall for such debts
	shareholders are not involved in the general operations of the business, but remain in the background
	the corporation is a separate legal entity from the shareholders
	shareholders take out insurance to cover such liabilities

Question 22 (1 point)

Which of the following statements about partnerships is false?

Question 22 options:

	All Ontario limited and limited liability partnerships must be registered with the provincial government
	without a partnership agreement, the death of any partner in a general partnership will result in the dissolution of the partnership
	both sole proprietors and partners in a general partnership have unlimited liability for business debts
	A written partnership agreement is necessary to form a general partnership

Question 23 (1 point)

In a limited partnership the limited partners...

Question 23 options:

	have only what they invested in the partnership business exposed to third parties for any liabilities incurred by the partnership business
	have no assets exposed to third parties for any liabilities incurred by the partnership business
	have their personal assets exposed to third parties for any liabilities incurred by the partnership business
	have their personal assets exposed to third parties for any liabilities incurred by their personal negligent conduct, but are limited otherwise to what they invested in the partnership business

Question 24 (1 point)

Which of the following is an act of bankruptcy?

Question 24 options:

	Failing to pay several creditors when their debts are due
	Giving notice to a creditor that the debtor will be suspending repayment to the creditor
	Fleeing the country to avoid payment of debt
	A debtor transferring title to the family home to a relative for $2 when the debtor is in financial difficulty with their creditors
	All of the above
	None of the above

Question 25 (1 point)

Which of the following is NOT a preferred creditor under the Bankruptcy and Insolvency Act?

Question 25 options:

	Banks for the balance owing on loans
	The trustee in bankruptcy
	The federal government
	Landlords for three months arrears of rent