10 1 review the characteristics of a corporation 1 a corporation is a separate legal 4351933

10.1   Review the characteristics of a corporation

1) A corporation is a separate legal entity from its owners.

2) A corporation in Canada can only incorporate through the federal government.

3) Limited liability means that the shareholders of a corporation share a personal liability for all debts of the corporation.

4) A public corporation has its shares listed for trading in a stock market.

5) Which one of the following is NOT a typical characteristic of a private corporation?

A) Small number of shareholders

B) Shares are not liquid

C) Shares are not easily traded

D) Shares are traded on a stock market

E) Shares are not easily transferred

6) Which of the following business types dominates by the amount of business transacted?

A) Partnerships

B) Proprietorships

C) Corporations

D) Government entities

E) Other

7) Which of the following is NOT an advantage of a corporation?

A) Double taxation

B) Ease of raising capital

C) Ease of transfer ownership

D) Continuous life

E) Limited liability

8) Which of the following is an advantage of a corporation?

A) Double taxation

B) Continuous life

C) Unlimited liability

D) Non-transfer of ownership

E) Government regulation

9) When you invest in a corporation, you may call yourself a __________.

10) The process of becoming a corporation is known as __________.

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