A Business Organized as a Corporation

question 34

Multiple Choice

A business organized as a corporation

• A) is not a separate legal entity in most provinces.
• B) requires that shareholders be personally liable for the debts of the business.
• C) is owned by its shareholders.
• D) has income tax disadvantages over a proprietorship or partnership.

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Definitions:

Indirect Cost

Expenses not directly attributable to the production of goods or services, such as overheads.

Allocate

To allocate means distributing resources or duties for a specific purpose or to particular entities.

Gross Sales

The total sales revenue of a company without any deductions for returns, allowances, or discounts.

Indirect Advertising Costs

Expenses related to advertising that are not directly associated with a specific advertising medium or campaign, such as salaries of marketing staff or overhead costs.