Question 1: In this type of partnership, individual partners are not personally liable for professional negligence of their partners:
a. General partnership
b. Limited partnership
c. Limited liability partnership
d. All of the above
Question 2: Which of these is false about shareholders of a corporation?
a. They have limited liability that is limited to their investment.
b. They elect a board of directors.
c. They pay tax on their proportionate share of the corporation’s earnings.
d. All of the above are true about shareholders.
Question 3: Which of the following generally have the authority to bind a corporation in contractual relations?
a. Shareholders and the board of directors they elect.
b. The board of directors and the managers they appoint.
c. Duly appointed officers, employees, or agents.
d. All of the above.
Question 4: In most jurisdictions, including Ontario, these types of corporations may restrict the transfer of shares:
a. Private
b. Public
c. Widely-held
d. Closely-held
Question 5: Dividends are:
a. Established in the incorporation certificate and represent capital repayments tax-deductible by the corporation.
b. Declared by management and represent interest owed on shares.
c. Declared by the directors and represent capital repayments not tax-deductible by the corporation.
d. Declared by the directors and represent capital repayments owed on shares.