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.

---

Definitions:

Research Question

A clearly defined query that outlines the focus of a study or investigation.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Research Design

A structured plan or strategy outlining how research will be conducted, including methods for collecting and analyzing data, to address specific research questions or hypotheses.

ISO Certification

A seal of approval from the International Organization for Standardization that a company's management system meets one of the international ISO management standards.