The ways that a corporation can be classified by purpose are

Question 1 options:

	profit and not-for-profit.
	general and limited.
	provincial and federal.
	publicly held and privately held.

Question 2 (1 point)

Saved

The concept of a "separate legal existence" refers to which form of business organization?

Question 2 options:

	Partnership
	Corporation
	Proprietorship
	Limited partnership

Question 3 (1 point)

Allen Barron has invested $800,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Barron stand to lose?

Question 3 options:

	Up to his total investment of $800,000.
	Zero.
	The $800,000 plus any personal assets the creditors demand.
	$400,000.

Question 4 (1 point)

A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a:

Question 4 options:

	corporation is organized for the purpose of making a profit.
	corporation's temporary accounts are closed at the end of the accounting period.
	corporation is an accounting economic entity.
	corporation is subject to numerous federal and provincial government regulations.

Question 5 (1 point)

All of the following are examples of organization costs except

Question 5 options:

	directors' fees.
	accounting fees.
	legal fees.
	registration costs.

Question 6 (1 point)

If a corporation has only one class of shares, they are referred to as

Question 6 options:

	common shares.
	preferred shares.
	reacquired shares.
	classless shares.

Question 7 (1 point)

The term residual claim refers to a shareholder's right to

Question 7 options:

	receive dividends.
	share in assets upon liquidation.
	acquire additional shares when offered.
	exercise the right to vote.

Question 8 (1 point)

A company's authorized shares are:

Question 8 options:

	the number of shares owned by shareholders.
	the number of shares authorized to receive regular dividends.
	the number of shares with the authority to vote on the board of directors.
	the total number of shares the company is allowed to sell.

Question 9 (1 point)

Under IFRS, corporations that issue shares in return for noncash assets should record the transaction at:

Question 9 options:

	the fair market value of the shares given up.
	the original cost of the asset acquired.
	the fair market value of the asset acquired.
	the book value of the shares given up.

Question 10 (1 point)

Dividends are declared out of

Question 10 options:

	Share Capital.
	Profit.
	Retained Earnings.
	Other Income.