Which of the Following Must Be True for a Corporation

question 68

Multiple Choice

Which of the following must be true for a corporation to elect statutory close corporation status?

• A) The corporation must have 100 or more shareholders.
• B) The corporation must have 50 or fewer shareholders.
• C) The corporation must contain a board of directors.
• D) The corporation must have a set of bylaws.

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Definitions:

Reinvestment Risk

The risk of having to reinvest income or principal at a lower interest rate in a fluctuating interest rate environment.

Default Risk

The possibility that a borrower will fail to pay back a loan or meet contractual obligations.

Government of Canada Bond

A debt security issued by the Canadian government to support government spending.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument must be paid in full.