LGL 153: Legal Entities and Relationships Week 2

What is a corporation also known as?

• Limited company

• Cooperative

• Sole proprietorship

• Partnership

Under which act is a corporation created in Ontario?

• Business Corporations Act

• Health and Safety Act

• Consumer Protection Act

• Environmental Protection Act

What is the most important feature of a corporation regarding liability?

• Limited liability

• Indirect liability

• Unlimited liability

• Joint liability

Who are the owners of a corporation called?

• Creditors

• Stakeholders

• Shareholders

• Executives

What type of corporation is created for purposes other than making money?

• Private Corporations

• Public Corporations

• Not-for-profit Corporations

• Professional Corporations

What must a professional corporation obtain to operate legally?

• Tax exemption

• Certificate of authorization

• Business license

• Operational permit

What is required for a corporation to amalgamate?

• Articles of amalgamation

• Certificate of dissolution

• Shareholder's permit

• Operational agreement

What is the role of directors in a corporation?

• Manage or supervise the management of the corporation

• Handle day-to-day operations

• To represent the corporation in legal matters

• Only to invest in the corporation

What type of resolution requires a two-thirds majority vote?

• Temporary resolutions

• Unanimous resolutions

• Ordinary resolutions

• Special resolutions

What happens when a corporation is voluntarily dissolved?

• It transfers all assets to the government

• It can immediately start a new business

• It divides its assets among the directors

• It must pay all debts and file articles of dissolution