Tommy knows that if she starts her own business in the form of a sole proprietorship, she will be required to carry on business activities. Which of the following would NOT be considered a business activity? O manufacturing safety pins O investing in guaranteed investment certificates and holding them until they mature shipping manufactured goods from the factories to the retail outlets O operating a retail store Harry and Harold are thinking about setting up a business together. Harry wants to draft a partnership agreement, but Harold says it would be a waste of time and he just wants to get down to business. Suppose that they do not execute a partnership agreement. Which of the following would not be a necessary characteristic of their business? They must both take an active role in the business. They will both be liable for all of the debts and obligations of the business. The objective of their arrangement must be to make a profit. They must share the profits equally Tim is one of six shareholders, but not an employee, of a Canadian-controlled private corporation that manufactures windows. The corporation has a large amount of cash on hand and the other shareholders have agreed that the corporation can lend him $50,000 for a few years. To avoid having the principal included in his taxable income, which of the following conditions must the loan meet? It must be made at the interest rate prescribed by the Regulation to the Income Tax Act. It must have a repayment date if not for a prescribed purchase. It must be repaid within one year of the end of the fiscal year in which it was made. It must be for a prescribed purchase. Which of the following would not be included in a simplified cash management plan? Transferring a fixed amount to a chequing account to meet current expenses. Setting aside a percentage of income before paying for current living expenses Directing all income into a special collection account. Projecting current cash flow to establish a working budget