mcqs for the final

Question 1

1. Which of the following is not an area of action part of the United Nations Global Compact ?

a) Financial reporting
b) Environment
c) Labour
d) Anti-Corruption
e) None of the other options

Answer 1

Financial reporting

Question 2

2. Which of the following areas in ethics is the most regulated by law ?

a) Responsible Investing
b) Whistle Blowing
c) Professional Standards
d) Gifts
e) None of the other options

Answer 2

Professional Standards

Question 3

3. Which of the following is the third step of whistle blowing

a) Inform the Board of Directors/Officers of the business
b) Inform the media
c) Inform the government/civil authorities
d) Write a post on Facebook/Twitter
e) None of the other options

Answer 3

c) Inform the government/civil authorities

Question 4

4. Which of the following best describes a corporation’s legal status:
   a. Corporations are groups of individuals collectively operating businesses
   b. Corporations are associations which provide tax advantages and protection for investor’s personal liability resulting from the operation of a business
   c. Corporations are distinct legal entities which provide tax advantages but little protection for investor’s personal liability resulting from the operation of a business
   d. Corporations are distinct legal entities which provide protection for investor’s personal liability resulting from the operation of a business
   e. None of the other options

Answer 4

d. Corporations are distinct legal entities which provide protection for investor’s personal liability resulting from the operation of a business

Question 5

5. Which of the following acts will not render a member of the Board of Directors personally responsible?
   a) Not disclosing a conflict of interest
   b) Unpaid GST
   c) A mistake done by the corporation’s bookkeeper (who is a professional accountant) who forgot to pay the payroll taxes for a trimester.
   d) All these actions will render a member of the Board of Directors responsible (except none of the other options
   e) None of the other options

Answer 5

d) All these actions will render a member of the Board of Directors responsible (except none of the other options

Question 6

Most jobs fall within which of the following jurisdiction ?

A)	 Federal
B)	Provincial
C)	Municipal
D)	International
E)	None of the above

Answer 6

B) Provincial

Question 7

What would be the proper legal procedure for an Employer who wants to enforce a non-competition clause against an employee who resigned and went to work for a competitor ?

a) Complaint to Labour Standard Commission
b) Sue in court
c) Seek an injunction in court
d) Complaint to the police
e) None of the above

Answer 7

c) Seek an injunction in court

Question 8

A non-competition clause in a contract of employment will always apply if an employee resigns?

Answer 8

False if the employer has given the employee a serious reason to resign (constructive dismissal)

Question 9

A 2 weeks notice is a reasonable notice under the civil code of Quebec when an employee resigns from this job.

Answer 9

true

Question 10

The main objective of civil liability is:

a) Punish the person who committed the fault to prevent a repeat behavior
b) Make the person who committed the fault accountable to society
c) Compensate the victim who suffered damage as a result of a fault
d) All of the above
e) None of the above

Answer 10

c) Compensate the victim who suffered damage as a result of a fault

Question 11

Which of the following type of damages is not available in a case of extra-contractual civil liability ?
A) Future damages
B) Present damages
C) Penal damages
D) Punitive damages
E) All of the above are available types of damages in extra-contractual civil liability

Answer 11

C) Penal damages

Question 12

A judge will not award punitive damages when the person receives a criminal conviction for the same event because the person was already punished by the legal system.

Answer 12

False.

A judge will take into consideration the criminal conviction in deciding if punitive damages will be awarded but a criminal conviction will not necessarily mean there will be no punitive damages (Walker v. Singer)

Question 13

All of the following must be found in the rights of shares in the share capital of a corporation except:

A) Rights to the dividend in the corporation
B) Rights in the election of the directors of the corporation
C) Rights that have been assumed by the shareholders from the directors
D) Rights to the remainder of the assets upon dissolution
E) They are all rights that must be found in the share capital of a corporation

Answer 13

C) Rights that have been assumed by the shareholders from the directors

Question 14

Which of the following statement is not true of the decision in the Peoples Department Stores v. Wise case ?

A) Directors have a fiduciary responsibility towards the creditors
B) Directors have a duty of care towards the creditors
C) The Wise brothers were not held personally liable
D) The duty of care is related to the obligation of diligence
E) All of the above are true in the decision

Answer 14

A) Directors have a fiduciary responsibility towards the creditors

Question 15

A prudent director should always ensure the legal person pays its corporate income tax to avoid being personally liable?

true or false

Answer 15

False

Corporate income tax falls under limited liability.

Deductions at source and GST/QST can result in personal liability for directors

Question 16

The main difference between a shareholders agreement and a unanimous shareholders agreement is that the unanimous shareholder agreement requires all the shareholders to agree to it

true or false

Answer 16

False

Both the shareholders agreement and the unanimous shareholders agreement requires all the shareholders to agree to it.