Which of the Following Statements Is TRUE

question 27

Multiple Choice

Which of the following statements is TRUE?

• A)The process for bringing a corporation into existence in Canada is essentially the same as for bringing a sole proprietorship or partnership into existence.
• B)Corporations have the same legal characteristics as sole proprietorships.
• C)Corporations may be subject to the same licensing requirements as sole proprietorships and partnerships.
• D)Just like partners and sole proprietors, shareholders are entitled to participate in the management of the business.
• E)The taxation of corporations and partnerships is the same.

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Definitions:

Surplus Federal Budget

A situation where the federal government's revenues exceed its expenditures within a given fiscal period.

National Saving

The total saving of a country, composed of the savings accumulated by both the private sector and the government, available for investment.

Aggregate Demand

A complete tally of the demand for goods and services in an economy, at an agreed upon price level during a precise time period.

National Defense

Government activities and infrastructure aimed at protecting a country from threats and maintaining its security.