When Shares Are Transferred from One Group of Shareholders to Another

question 3

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 that arise following the change in control are automatically deemed to have expired.
• 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 arising prior to the change in control are automatically deemed to have expired.
• D)Net-capital 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.

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Definitions:

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An economic theory and practice dominant in Europe from the 16th to the 18th century, focusing on building a nation's wealth by exporting more than it imports and accumulating precious metals.

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The supreme legislative body in the United Kingdom, consisting of two houses: the House of Commons and the House of Lords.

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Historical community located in Massachusetts known for the Salem Witch Trials of 1692, where accusations of witchcraft led to trials and executions.