Which of the Following Is a Requirement for a Business

question 2

Multiple Choice

Which of the following is a requirement for a business to qualify as a 'qualified small business corporation'?

• 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 shares must not have been owned by another non-related individual in the past 24 months.
• D) The shares must not have been owned by another related individual in the past 24 months.

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Definitions:

Market Efficiency

The concept that all available information is fully reflected in securities' prices, making it impossible to consistently achieve higher returns without taking on additional risk.

Abnormal Returns

Returns on a security that exceed what is predicted by market models, often attributed to unforeseen events or information.

Publicly Available Information

Information that is accessible to the general public, including but not limited to financial reports, press releases, and government documents.

Debt Hypothesis

A theory suggesting that the level of a company's debt influences its value by affecting tax payments and bankruptcy risks.