When Shares Are Transferred from One Group of Shareholders to Another

question 6

Multiple Choice

When shares are transferred from one group of shareholders to another and there is a change in control, which of the following is correct?

• A) Net capital losses arising prior to the change in control will be lost and any non-capital losses arising prior to the change in control may be used if the business that incurred the loss is terminated.
• B) Non-capital business losses arising prior to the change in control may be used against income from the business that incurred the loss if that business is carried on at a profit or reasonable expectation of profit in the year in which the losses are
• Applied.
• C) Non-capital losses are automatically deemed to have expired.
• D) Any net capital losses that arise following the change in control will be lost.

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Definitions:

Payroll

The process by which employers pay an employee for the work they have completed.

Employees' Needs

Refers to the various requirements, desires, or things that employees consider important or necessary in their work environment, including fair compensation, job security, and professional growth opportunities.

Initial Activities

The preliminary actions or efforts undertaken at the start of a project, program, or process.

Personnel Department

An organizational unit tasked with managing employee-related functions, such as hiring, training, and benefits administration; often called Human Resources.