Which of the Following Accurately Describes a Requirement for a Business

question 11

Multiple Choice

Which of the following accurately describes a requirement for a business to qualify as a qualified small business corporation (QSBC) ?

• A)The corporation must be a CCPC that uses at least 50% of the fair market value its assets for active business purposes in Canada at the time the shares are sold.
• B)More than fifty percent of the fair market value of the assets of the business must have been used for active business in the past 36 months.
• C)The corporation must hire less than 5 full-time employees.
• D)The shares must not have been owned by another non-related individual in the past 24 months.

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Definitions:

Substitute Product

A product that can be used in place of another product, satisfying the same consumer needs or wants.

LRMC

Long-Run Marginal Cost, which refers to the additional cost of producing one more unit of a good or service when all inputs are variable in the long term.

Increase Traffic

Refers to the actions and strategies deployed to attract more visitors or users to a website, online platform, or physical location.

Parking Rates

The fees charged for the use of parking spaces, often varying based on location, time, and demand.