FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: The Corporate Form: Organizational Matters

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

A NUANS report is required to be submitted with the incorporating documents of a shelf company.

A) True
B) False

Correct Answer

verified

False

Question 2

True/False

Review LaterAdd Note

Review Later

Where there has been a finding of liability for failure to make timely disclosure of a material change in an issuer's business, the liability award will be capped unless the defendant knowingly participated in the misrepresentation or failure to disclose.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Rolf called Tim to discuss an as-yet unannounced corporate takeover. Following Rolf's call, Tim purchased securities of both corporations on the basis of relevant material information he received. The securities are held in a joint trading account co-owned by Tim and Rolf. In these circumstances, Rolf is a tippee, Tim is an insider, and both Rolf and Tim are guilty of insider trading.

In British Columbia, a corporation is often described as a "company" although, strictly speaking, the terms are not synonymous.

Why are corporations seen as being capable of remedying many of the shortcomings found in the sole proprietorship and partnership business forms?

Which of the following would strongly support shareholders maintaining their business values and goals in closely held corporations?

Marion, along with several others, lost substantial funds through an investment based on misrepresentations stated in a secondary market disclosure their broker recommended. The disgruntled group's lawyer advised that recent amendments to provincial securities legislation now provide a meaningful civil remedy and facilitate class actions. Which of the following exemplifies the type of amendment made to achieve these goals?

Which of the following provisions in an incorporating document would most strongly support the intention to incorporate a private company?

Which of the following is a distinguishing characteristic of a corporation?

Amy's corporation will have a broad distribution base. She is currently working on a statement pertaining to matters that are likely to affect the value of securities. Which of the following matters must be disclosed, in accordance with securities legislation, in the document Amy is preparing?

"Bonds" and "debentures" are terms used interchangeably to refer to financing methods. How is it possible to understand precisely which type of financing either instrument actually pertains to?

Remmie Ltd. owns all of the Class B shares in Rex Holdings Inc., giving it 40 percent of the equity and 82 percent of the voting power. How is Remmie able to exert control over Rex?

The board of directors of a corporation is charged with the management functions, including policy development, and is answerable directly to the shareholders, who may vote them out of office should they perform poorly.

A bondholder of an insolvent corporation is entitled to payment from proceeds before general creditors, if secured, and before shareholders.

Marcella must take care when choosing a name for her new corporate entity if she wants to avoid criminal prosecution for defrauding the public.

Briefly discuss how the offences of insider trading and tipping are dealt with in Canada.

Sam recently assumed an equity position in a corporation rather than continuing as one of its unsecured creditors. What right has Sam exercised?

Which of the following is synonymous with the term "closely held" with respect to corporate entities?

Rain Water Recycling Inc. has negotiated with the federally funded Business Development Bank for a capital loan to expand its existing operations. What is the role of the bank?

What is the legal term for decision makers who enter contracts on behalf of an artificial entity?