Which of the Following Statements Is TRUE Regarding the Disposal

question 9

Multiple Choice

Which of the following statements is TRUE regarding the disposal of shares by a shareholder?

• A)When a shareholder sells shares to other shareholders, the corporation's capital base increases.
• B)The sale of shares to other shareholders is known as a 'buy-back'.
• C)The sale of shares to the corporate treasury is not allowed in the Income Tax Act.
• D)The sale of shares to the corporate treasury may result in a deemed dividend and a capital gain or loss to the shareholder.

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Definitions:

Demand for Labor

The total amount of labor (number of workers or hours worked) that employers want to hire at various wage rates.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.

Slope

The measure of steepness or incline, typically describing the change in the vertical over the change in the horizontal.