A firm’s contribution margin ratio =40%, selling price=$100/unit A firm’s contribution margin ratio =40%, selling price=$100/unit. Variable cost per unit is: A. $40 B. $60 C. $100 D. $0 An

Which budgeting method requires managers to justify every expense from zero annually Which budgeting method requires managers to justify every expense from zero annually? A. Incremental budgeting B. Z

Under CBCA, directors who knowingly approve unlawful dividends are: Under CBCA, directors who knowingly approve unlawful dividends are: A. Liable to the company for the amount of the unlawful dividend

A proxy circular must include a detailed description of A proxy circular must include a detailed description of: A. Each matter to be voted on at the meeting B. Daily operational activities C. Confide

Which of the following documents governs the internal management of a Canadian corporation Which of the following documents governs the internal management of a Canadian corporation? A. By-laws B. Pro

Directors must act in the best interests of the corporation, which includes considering Directors must act in the best interests of the corporation, which includes considering: A. Long-term sustainabi

When a company amalgamates with another under CBCA, shareholders are entitled to When a company amalgamates with another under CBCA, shareholders are entitled to: A. Dissent rights if they oppose the

Which of the following is NOT a right of preferred shareholders under typical Canadian articles Which of the following is NOT a right of preferred shareholders under typical Canadian articles? A. Full

The quorum for a board meeting under CBCA is typically The quorum for a board meeting under CBCA is typically: A. A majority of directors B. All directors C. One-third of directors D. No quorum requir

A director who engages in self-dealing with the company must A director who engages in self-dealing with the company must: A. Disclose the conflict and abstain from voting B. Ensure the transaction is

Under CBCA, a shareholder may inspect corporate records such as minutes and financial statements Under CBCA, a shareholder may inspect corporate records such as minutes and financial statements: A. Up

Which of the following is a responsibility of the board of directors regarding corporate strategy Which of the following is a responsibility of the board of directors regarding corporate strategy? A.

Minority shareholders are protected from unfair treatment by which legal mechanism Minority shareholders are protected from unfair treatment by which legal mechanism? A. Oppression remedy B. Majority

A board may validly delegate authority to a committee of directors if A board may validly delegate authority to a committee of directors if: A. Permitted by the company’s by-laws and CBCA B. The

Under Canadian securities rules, public companies must disclose director and officer compensation Under Canadian securities rules, public companies must disclose director and officer compensation: A.

Which of the following is a consequence of a director breaching their fiduciary duties Which of the following is a consequence of a director breaching their fiduciary duties? A. Court-ordered removal

Independent directors are defined as directors who Independent directors are defined as directors who: A. Have no material relationship with the company or its insiders B. Are appointed by majority sh

A shareholders’ resolution passed by written consent (without a meeting) under CBCA requires: A shareholders’ resolution passed by written consent (without a meeting) under CBCA requires:

Which of the following actions by a director would NOT breach the duty of care Which of the following actions by a director would NOT breach the duty of care? A. Relying on expert reports in good fait

The primary purpose of proxy voting is to The primary purpose of proxy voting is to: A. Facilitate shareholder participation in meetings B. Concentrate power in the board of directors C. Eliminate min

Under CBCA, dividends may only be paid if Under CBCA, dividends may only be paid if: A. The company is solvent and can pay debts as they fall due B. Shareholders approve the dividend C. The company ha

Which of the following is a valid reason for a director to abstain from voting on a board resolution Which of the following is a valid reason for a director to abstain from voting on a board resolutio

Shareholders who vote in favor of a transaction generally Shareholders who vote in favor of a transaction generally: A. Cannot later challenge the transaction’s validity B. May still challenge t

A public company’s audit committee must include at least: A public company’s audit committee must include at least: A. One independent director with financial literacy B. Three executive d

Under CBCA, unanimous shareholder agreements (USAs) can Under CBCA, unanimous shareholder agreements (USAs) can: A. Restrict or eliminate the board’s powers B. Only apply to public companies C.