When Shares Are Transferred from One Group of Shareholders to Another

question 9

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) Any net capital losses that arise following the change in control will be lost.
• B) Non-capital losses are automatically deemed to have expired.
• C) 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.
• D) 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.

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Definitions:

Olfactory Receptors

Specialized nerve cells in the nose involved in detecting odors and converting them into signals sent to the brain.

The Oval Window

A membrane-covered opening that leads from the middle ear to the vestibule of the inner ear, playing a key role in the process of hearing.

Embodied Cognition

The theory suggesting that aspects of cognition are shaped by the body's interactions with the environment.

Kinesthesia

Refers to the sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.