Module 6

Question 1

What are the 3 elements a corporate name must have?

Answer 1

Distinctive, descriptive, legal

Question 2

What terms are prohibited in naming a corporation?

Answer 2

Anything to do with “Royal” or “Olympic”, Kananaskis, Nakiska, Alberta Heritage Savings Trust Fund

Question 3

What is a NUANS report?

Answer 3

Newly Updated Automated Name Search; it reserves the name for 90 days. Not required if a corporation is using an automatically generated numbered name.

Question 4

How much is a NUANS report?

Answer 4

$50

Question 5

How much is a shareholder liable for?

Answer 5

Just the amount of their investment

Question 6

How much of a corporations directors must be Canadian residents?

Answer 6

one quarter

Question 7

What tasks can a corporation complete that a partnership can’t?

Answer 7

A corporation can own property, enter contracts, sue another person or corp, be sued.

Question 8

What is the biggest concern for shareholders?

Answer 8

Whether or not the corp makes money

Question 9

What are the responsibilities of a director?

Answer 9

-issuing shares
-long term planning
-reporting to shareholders
-appointing officers
-setting own salaries and compensation

Question 10

What might a director be personally responsible for?

Answer 10

Unpaid source deductions of employees if the corp cannot pay them. includes income tax, EI premiums and CPP premiums