Question 31(1 point)

An insider of a corporation includes:

Question 31 options:

a bond holder

a shareholder

a senior officer

a debt holder

Question 32(1 point)

Rosina has recently developed a highly original computer program that, she claims, will revolutionize the practice of landscape architecture. She has been advised by a consultant that marketing the software is likely to be a highly profitable venture. However to develop and market the project will require working capital, which Rosina does not have. Fortunately her uncle, Bartolo, has agreed to put $100,000.00 of his savings into the project. With the held of a lawyer friend (who has advised them that they should each obtain independent legal advice), they have worked out a rough structure for their project, as follows: a) They will form a corporation, of which they will be the sole shareholders; b) Rosina will assign her copyright in the program to the corporation and will work full-time in developing and marketing it; c) Bartolo will contribute $100,000.00 in cash as working capital and will participate in major management decisions but will not be responsible for the day-to-day running of the business. Since Rosina will be giving up a fairly well-paid job in order to develop the new business, she is concerned that she should not be left entirely without income during the initial period (when there would be no sales revenue). In turn, Bartolo would like there to be some sort of guarantee of a reasonable return of income on his investment. Rosina should:

Question 32 options:

ask for a monthly salary

insist on being a director

vote at each meeting

seek financial statements

Question 33(1 point)

In Ontario, the General Incorporation Statute is:

Question 33 options:

The Ontario Business Corporations Act

The Act of the Legislature

The Letters Patent System

The Canada Business Corporation Act

Question 34(1 point)

In a corporation, management is delegated to:

Question 34 options:

employees

shareholders

a shareholders committee

an elected board of directors

Question 35(1 point)

At least:

Question 35 options:

25% of the directors of a corporation must be Canadian

30% of the directors of a corporation must be Canadian

one director of a corporation must be Canadian

none of the above

Question 36(1 point)

Shareholders in a general meeting:

Question 36 options:

elect the board of directors

cannot vote if they are insiders

declare dividends

cannot vote if in a conflict of interest

Question 37(1 point)

A distributing corporation is also:

Question 37 options:

a widely held corporation

a private corporation

a corporation that retracts the number of shareholders

a closely held corporation

Question 38(1 point)

One of the following is not included in the Articles of Incorporation:

Question 38 options:

address of the head office

the bonds the corporation will issue

restriction on transfer of shares

the name

Question 39(1 point)

John and Peter wish to incorporate their grocery business as Happy Grcoeries Ltd. To do so, among other things, they must:

Question 39 options:

decide on the by-laws of the corporation

complete the articles of incorporation

obtain a certificate of incorporation

conduct a name search

all of the above

Question 40(1 point)

A common shareholder may:

Question 40 options:

vote at any meeting of insiders

vote at any management committee meeting

vote at any meeting of directors