Question 1

Who is the party responsible for ensuring that financial statements for an organization are properly done?

Accepted Answer

An auditor

Question 2

A securities commission is a provincial agency that serves as watchdog on issuance and trading of shares.

Accepted Answer

A) True 
 B)False  True

Question 3

Preferred shareholders usually get preference when dividends are declared but no vote.

Accepted Answer

A) True 
 B)False  True

Question 4

"In modern business practice, the shareholders of a corporation own that corporation." Explain the accuracy of this statement.

Accepted Answer

A corporation is a separate legal person

Question 5

Which of the following is not an advantage of incorporation?

Accepted Answer

A)  Shareholders are not liable for debts of the corporation. 
B)  There may be tax advantages. 
C)  Shareholders can veto decisions of directors. 
D)  Shares are easily transferred. 
E)  Shareholders owe no duty to the corporation. 
A)  Shareholders are not liable for debts of the corporation. 
B)  There may be tax advantages. 
C)  Shareholders can veto decisions of directors. 
D)  Shares are easily transferred. 
E)  Shareholders owe no duty to the corporation.

Question 6

Mark wants to incorporate. Which one of the following statements is correct with regard to incorporating in Nova Scotia?

Accepted Answer

A)  Articles of incorporation is the document used to incorporate the company. 
B)  These are "letters patent" jurisdictions. 
C)  The documents to be sent to the registrar of companies are called the "memorandum" and the "articles." 
D)  The "objects" of the company must be set out in the charter document so that the shareholders understand the limits on the capacity of the corporation. 
E)  You can't incorporate a closely held company in this jurisdictions. 
A)  Articles of incorporation is the document used to incorporate the company. 
B)  These are "letters patent" jurisdictions. 
C)  The documents to be sent to the registrar of companies are called the "memorandum" and the "articles." 
D)  The "objects" of the company must be set out in the charter document so that the shareholders understand the limits on the capacity of the corporation. 
E)  You can't incorporate a closely held company in this jurisdictions.

Question 7

A person who participates in the initial setting up of a corporation or who assists the corporation in making a public share offering is known in law as

Accepted Answer

A)  a shareholder. 
B)  an initiator. 
C)  a promoter. 
D)  a founder. 
E)  a preferred shareholder. 
A)  a shareholder. 
B)  an initiator. 
C)  a promoter. 
D)  a founder. 
E)  a preferred shareholder.

Question 8

If there is only one class of shares, they will be common shares.

Accepted Answer

A) True 
 B)False

Question 9

Read each of the following separately. In which one of the following cases would the corporation not be bound by the contract made?

Accepted Answer

A)  Jones, without the knowledge or authorization of Corporation A, approached one of their suppliers claiming to be an employee of Corporation A. He selected several valuable watches and took them with him, putting the bill on Corporation A's account. No one in Corporation A had ever heard of Jones before. 
B)  Contrary to company policy, Gore, the purchasing agent for the corporation, contracted for supplies by using the green form instead of using the blue form. 
C)  Brian, a purchasing agent for the corporation for ten years, was fired for just cause. The next day, he visited suppliers as usual and contracted for the corporation as usual. They had not been told that he had been fired. 
D)  Kim, an agent for a small closely held corporation which sold Canadian art, had authority to purchase some photographs of Clayoquot Sound, but instead she bought several oil paintings of the sea. When they were sent to the store, they were sold immediately. 
E)  A salesperson working for a corporation operating a car dealership sold a car and took a trade-in without first getting approval of the manager as required in his employment contract. 
A)  Jones, without the knowledge or authorization of Corporation A, approached one of their suppliers claiming to be an employee of Corporation A. He selected several valuable watches and took them with him, putting the bill on Corporation A's account. No one in Corporation A had ever heard of Jones before. 
B)  Contrary to company policy, Gore, the purchasing agent for the corporation, contracted for supplies by using the green form instead of using the blue form. 
C)  Brian, a purchasing agent for the corporation for ten years, was fired for just cause. The next day, he visited suppliers as usual and contracted for the corporation as usual. They had not been told that he had been fired. 
D)  Kim, an agent for a small closely held corporation which sold Canadian art, had authority to purchase some photographs of Clayoquot Sound, but instead she bought several oil paintings of the sea. When they were sent to the store, they were sold immediately. 
E)  A salesperson working for a corporation operating a car dealership sold a car and took a trade-in without first getting approval of the manager as required in his employment contract.

Question 10

Since a variety of rights and restrictions can be incorporated into ________, depending on the interests of the parties, it is important that these matters be negotiated before they are issued.

Accepted Answer

A)  preferred shares 
B)  bonds 
C)  par-value shares 
D)  securities 
E)  founders 
A)  preferred shares 
B)  bonds 
C)  par-value shares 
D)  securities 
E)  founders

Question 11

Which of the following is an example of a breach of a fiduciary duty?

Accepted Answer

A)  A shareholder of ABC Ltd., a trucking corporation whose shares are listed on the Vancouver Stock Exchange, is working as an employee for ABC Ltd.'s competitor, Jonstone Trucking. 
B)  The directors of the corporation, contrary to the request by the shareholders, refused to declare dividends. 
C)  A partner in a firm learned of a business forced to sell some heavy equipment. Although the partnership could have used the equipment, he bought and sold it at a substantial profit before the partnership was given a chance to buy it. 
D)  A promoter of a corporation sold property to the corporation for four times what he paid for it after he made full disclosure of his interest to an independent board of directors, which voted for the purchase. 
E)  A shareholder of a corporation voted in favour of an acquisition by the corporation at the annual general meeting because he secretly had an interest in the corporation being purchased. 
A)  A shareholder of ABC Ltd., a trucking corporation whose shares are listed on the Vancouver Stock Exchange, is working as an employee for ABC Ltd.'s competitor, Jonstone Trucking. 
B)  The directors of the corporation, contrary to the request by the shareholders, refused to declare dividends. 
C)  A partner in a firm learned of a business forced to sell some heavy equipment. Although the partnership could have used the equipment, he bought and sold it at a substantial profit before the partnership was given a chance to buy it. 
D)  A promoter of a corporation sold property to the corporation for four times what he paid for it after he made full disclosure of his interest to an independent board of directors, which voted for the purchase. 
E)  A shareholder of a corporation voted in favour of an acquisition by the corporation at the annual general meeting because he secretly had an interest in the corporation being purchased.

Question 12

Explain "lifting the corporate veil."

Accepted Answer

This is where the courts will

Question 13

Shareholders do not owe a duty to the corporation.

Accepted Answer

A) True 
 B)False

Question 14

To whom does the director owe the duty to be careful?

Accepted Answer

To the cor

Question 15

The articles of incorporation jurisdictions (except British Columbia) have abolished

Accepted Answer

A)  dividends. 
B)  preferred shares. 
C)  par-value shares. 
D)  voting shares. 
E)  promoters. 
A)  dividends. 
B)  preferred shares. 
C)  par-value shares. 
D)  voting shares. 
E)  promoters.

Question 16

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 17

What are preferred shares?

Accepted Answer

Shares giving the shareholder

Question 18

Directors owe a fiduciary duty to the shareholders.

Accepted Answer

A) True 
 B)False

Question 19

A share interest in the indebtedness of a corporation that can be secured against specific assets is known as a ________.

Accepted Answer

The answer of A share interest in the indebtedness of...

Question 20

Which of the following situations would allow a shareholder to sue on behalf of the corporation?

Accepted Answer

A)  If four of the five directors, in the best interests of the corporation, voted against the fifth as director, voted to end the employment contract of the fifth, and voted not to buy his shares. 
B)  If the corporation had been wronged (lost $30,000) by the negligent and fraudulent acts of one of its directors, but the corporation refused to make any action against the wrongdoer. 
C)  If the shareholders refused to enter into a shareholder's agreement. 
D)  If the directors took an action that unfairly prejudiced a shareholder. 
E)  If the directors issued shares without offering any of the new issue to the present shareholders. 
A)  If four of the five directors, in the best interests of the corporation, voted against the fifth as director, voted to end the employment contract of the fifth, and voted not to buy his shares. 
B)  If the corporation had been wronged (lost $30,000) by the negligent and fraudulent acts of one of its directors, but the corporation refused to make any action against the wrongdoer. 
C)  If the shareholders refused to enter into a shareholder's agreement. 
D)  If the directors took an action that unfairly prejudiced a shareholder. 
E)  If the directors issued shares without offering any of the new issue to the present shareholders.

Who is the party responsible for ensuring that financial statements for an organization are properly done?

A securities commission is a provincial agency that serves as watchdog on issuance and trading of shares.

Preferred shareholders usually get preference when dividends are declared but no vote.

"In modern business practice, the shareholders of a corporation own that corporation." Explain the accuracy of this statement.

Which of the following is not an advantage of incorporation?

Mark wants to incorporate. Which one of the following statements is correct with regard to incorporating in Nova Scotia?

A person who participates in the initial setting up of a corporation or who assists the corporation in making a public share offering is known in law as

If there is only one class of shares, they will be common shares.

Read each of the following separately. In which one of the following cases would the corporation not be bound by the contract made?

Since a variety of rights and restrictions can be incorporated into ________, depending on the interests of the parties, it is important that these matters be negotiated before they are issued.

Which of the following is an example of a breach of a fiduciary duty?

Explain "lifting the corporate veil."

Shareholders do not owe a duty to the corporation.

To whom does the director owe the duty to be careful?

The articles of incorporation jurisdictions (except British Columbia) have abolished

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

What are preferred shares?

Directors owe a fiduciary duty to the shareholders.

A share interest in the indebtedness of a corporation that can be secured against specific assets is known as a ________.

Which of the following situations would allow a shareholder to sue on behalf of the corporation?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 11: Corporations

Who is the party responsible for ensuring that financial statements for an organization are properly done?

A securities commission is a provincial agency that serves as watchdog on issuance and trading of shares.

Preferred shareholders usually get preference when dividends are declared but no vote.

"In modern business practice, the shareholders of a corporation own that corporation." Explain the accuracy of this statement.

Which of the following is not an advantage of incorporation?

Mark wants to incorporate. Which one of the following statements is correct with regard to incorporating in Nova Scotia?

A person who participates in the initial setting up of a corporation or who assists the corporation in making a public share offering is known in law as

If there is only one class of shares, they will be common shares.

Read each of the following separately. In which one of the following cases would the corporation not be bound by the contract made?

Since a variety of rights and restrictions can be incorporated into ________, depending on the interests of the parties, it is important that these matters be negotiated before they are issued.

Which of the following is an example of a breach of a fiduciary duty?

Explain "lifting the corporate veil."

Shareholders do not owe a duty to the corporation.

To whom does the director owe the duty to be careful?

The articles of incorporation jurisdictions (except British Columbia) have abolished

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

What are preferred shares?

Directors owe a fiduciary duty to the shareholders.

A share interest in the indebtedness of a corporation that can be secured against specific assets is known as a ________.

Which of the following situations would allow a shareholder to sue on behalf of the corporation?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters