Question 1

Contrast the obligations and duties of directors and shareholders of a corporation.

Accepted Answer

Basically,the shareholders of a corporat

Question 2

What does it mean to be a broadly held corporation?

Accepted Answer

In general,it is a corporation

Question 3

Shareholders in a closely held corporation can control the rights and responsibilities they have to each other by a shareholders' agreement.

Accepted Answer

A) True 
 B)False

Question 4

There is one common method of creating corporations used across Canada.

Accepted Answer

A) True 
 B)False

Question 5

A real estate agent,by virtue of her fiduciary duty to her principal,is not allowed to buy the property being sold by her principal without full disclosure to and consent from her principal.The real estate agent does not want to disclose that she is the buyer of the property,so she forms a corporation and takes an offer to her principal from the corporation.Based on these facts,which of the following is true if the principal finds out the corporation/buyer is owned by the real estate agent and objects to the contract?

Accepted Answer

A)  The court would enforce the contract because the corporation is a separate legal entity in the eyes of the law. 
B)  The court would enforce the contract because this is not a direct breach of the agent's fiduciary duty. 
C)  The court would not enforce the contract and would "lift the corporate veil." 
D)  The court would dissolve the corporation. 
E)  The court would enforce the contract, but the principal would be able to claim any profits from the agent when she took them out of the corporation. 
A)  The court would enforce the contract because the corporation is a separate legal entity in the eyes of the law. 
B)  The court would enforce the contract because this is not a direct breach of the agent's fiduciary duty. 
C)  The court would not enforce the contract and would "lift the corporate veil." 
D)  The court would dissolve the corporation. 
E)  The court would enforce the contract, but the principal would be able to claim any profits from the agent when she took them out of the corporation.

Question 6

Owning shares gives the shareholder control of the corporation but no rights to the assets of the corporation upon dissolution.

Accepted Answer

A) True 
 B)False

Question 7

Explain the significance of a personal guarantee.

Accepted Answer

It is a guarantee of payment f

Question 8

Explain the significance of the determination that a corporation is a broadly held corporation as opposed to a closely held corporation.

Accepted Answer

There are more significant reporting and

Question 9

Where a corporation is not able to pay the debts it owes,the creditors can turn to the shareholders for payment.

Accepted Answer

A) True 
 B)False

Question 10

A broadly held corporation has fewer restrictions on it than a closely held corporation.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a fiduciary relationship?

Accepted Answer

A)  agent and the third party 
B)  officer of the corporation and the shareholders 
C)  director of the corporation and the shareholders of the corporation 
D)  shareholders and the corporation 
E)  directors of the corporation and the corporation 
A)  agent and the third party 
B)  officer of the corporation and the shareholders 
C)  director of the corporation and the shareholders of the corporation 
D)  shareholders and the corporation 
E)  directors of the corporation and the corporation

Question 12

What is a preferred share?

Accepted Answer

A preferred share is one on which specia

Question 13

If dividends are not paid,preferred shares usually convert to voting shares.

Accepted Answer

A) True 
 B)False

Question 14

In jurisdictions in which the registration system of incorporation is used,what are the rules governing the internal regulations of a company called?

Accepted Answer

the articl

Question 15

The corporation typically makes a debt commitment to a ___________,who then issues shares in the indebtedness to individual bondholders.

Accepted Answer

A)  creditor 
B)  trustee 
C)  shareholder 
D)  bondholder 
E)  tribuna 
A)  creditor 
B)  trustee 
C)  shareholder 
D)  bondholder 
E)  tribuna

Question 16

Distinguish between selling the assets of a corporation and selling its shares.

Accepted Answer

If its shares are sold,the corporation c

Question 17

Explain the nature of the director's duties to the corporation.

Accepted Answer

A fiduciary duty is owed,in that the dir

Question 18

A securities commission is

Accepted Answer

A)  a provincial agency that serves as watchdog on the stock market. 
B)  a collateral right to debt. 
C)  a fee or percentage allowed to a shareholder in a share transaction. 
D)  an authorization to exchange confidential information. 
E)  a permission to transfer shares in a closely held company. 
A)  a provincial agency that serves as watchdog on the stock market. 
B)  a collateral right to debt. 
C)  a fee or percentage allowed to a shareholder in a share transaction. 
D)  an authorization to exchange confidential information. 
E)  a permission to transfer shares in a closely held company.

Question 19

A share refers to a share interest in the indebtedness of a corporation,often used synonymously with debenture.

Accepted Answer

A) True 
 B)False

Question 20

Indicate three advantages to incorporation.

Accepted Answer

Limited liability; reduced taxes under s

Contrast the obligations and duties of directors and shareholders of a corporation.

What does it mean to be a broadly held corporation?

Shareholders in a closely held corporation can control the rights and responsibilities they have to each other by a shareholders' agreement.

There is one common method of creating corporations used across Canada.

Owning shares gives the shareholder control of the corporation but no rights to the assets of the corporation upon dissolution.

Explain the significance of a personal guarantee.

Explain the significance of the determination that a corporation is a broadly held corporation as opposed to a closely held corporation.

Where a corporation is not able to pay the debts it owes,the creditors can turn to the shareholders for payment.

A broadly held corporation has fewer restrictions on it than a closely held corporation.

Which of the following is a fiduciary relationship?

What is a preferred share?

If dividends are not paid,preferred shares usually convert to voting shares.

In jurisdictions in which the registration system of incorporation is used,what are the rules governing the internal regulations of a company called?

The corporation typically makes a debt commitment to a ___________,who then issues shares in the indebtedness to individual bondholders.

Distinguish between selling the assets of a corporation and selling its shares.

Explain the nature of the director's duties to the corporation.

A securities commission is

A share refers to a share interest in the indebtedness of a corporation,often used synonymously with debenture.

Indicate three advantages to incorporation.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 12: Corporations

Contrast the obligations and duties of directors and shareholders of a corporation.

What does it mean to be a broadly held corporation?

Shareholders in a closely held corporation can control the rights and responsibilities they have to each other by a shareholders' agreement.

There is one common method of creating corporations used across Canada.

Owning shares gives the shareholder control of the corporation but no rights to the assets of the corporation upon dissolution.

Explain the significance of a personal guarantee.

Explain the significance of the determination that a corporation is a broadly held corporation as opposed to a closely held corporation.

Where a corporation is not able to pay the debts it owes,the creditors can turn to the shareholders for payment.

A broadly held corporation has fewer restrictions on it than a closely held corporation.

Which of the following is a fiduciary relationship?

What is a preferred share?

If dividends are not paid,preferred shares usually convert to voting shares.

In jurisdictions in which the registration system of incorporation is used,what are the rules governing the internal regulations of a company called?

The corporation typically makes a debt commitment to a ___________,who then issues shares in the indebtedness to individual bondholders.

Distinguish between selling the assets of a corporation and selling its shares.

Explain the nature of the director's duties to the corporation.

A securities commission is

A share refers to a share interest in the indebtedness of a corporation,often used synonymously with debenture.

Indicate three advantages to incorporation.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters