1. Which of the following is a distinguishing characteristic of a corporation?
a. the ease of transfer of ownership
b. it is entirely funded by stockholders
c. the ease of understanding tax consequences
d. it has entirely secured debt arrangements
2. Ivoe and Juri are meeting with their lawyer to discuss the incorporation of X-treme Trivia Corp. They hope for the broad distribution of their product. What type of incorporation will their lawyer most likely recommend?
a. provincial incorporation
?b. foreign incorporation
c. federal incorporation and extra-provincial registration
d. federal incorporation
3. Gwen and Ross are contemplating the frequency of the declaration of dividends regarding each of the classes of shares recommended by their accountant. What undertaking is Gwen and Ross most likely involved in?
a. They are incorporators settling on a new legal entity's share structure.
b. They are creating a directorship in an issuing corporation.
c. They are directors settling compliance with securities legislation.
d. They are managing a profitable legal entity.