BUSA 364 Midterm Exam Questions
and Answers (Already Graded A+)
When must the declaration of registration be submitted? - Answer- Declaration must be
filed no more than 60 days after the date on which registration becomes compulsory
(when you start operating the business) - s. 32
Declaration of registration must be filed no more than 30 days after the date on which
registration becomes compulsory in the case of a tobacco retail sales outlet to an
artificial tanning salon
Sole Proprietorship: Liability - Answer- unlimited personal liability
Sole Proprietorship: Ownership - Answer- - owns 100% of the business
- entitled to all profits
- profits are considered personal income and are taxed as such!
Sole Proprietorship: Ownership Transfer - Answer- Ownership of a SP cannot be
transferred but assets can be sold!
Sole Proprietorship: Management - Answer- complete managerial control
Sole Proprietorship: Termination - Answer- Terminates when the owner dies
Terminates when the owner stops the business
**Must file a declaration of cancellation (no cost - regular; $18.5-priority)
Advantages of Sole Proprietorship - Answer- make fast decisions
cheap
complete control
100% profit
easy to dissolve
not required to public disclosure
enjoyment and challenges of personal experience
Disadvantages of Sole Proprietorship - Answer- unlimited personal liability
tax on personal income
goodwill difficulties
Partnership (CCQ) - Answer- A business owned by two or more people. More liable to
personal loss
All partnership must register! s. 21(2)ALPE
and Answers (Already Graded A+)
When must the declaration of registration be submitted? - Answer- Declaration must be
filed no more than 60 days after the date on which registration becomes compulsory
(when you start operating the business) - s. 32
Declaration of registration must be filed no more than 30 days after the date on which
registration becomes compulsory in the case of a tobacco retail sales outlet to an
artificial tanning salon
Sole Proprietorship: Liability - Answer- unlimited personal liability
Sole Proprietorship: Ownership - Answer- - owns 100% of the business
- entitled to all profits
- profits are considered personal income and are taxed as such!
Sole Proprietorship: Ownership Transfer - Answer- Ownership of a SP cannot be
transferred but assets can be sold!
Sole Proprietorship: Management - Answer- complete managerial control
Sole Proprietorship: Termination - Answer- Terminates when the owner dies
Terminates when the owner stops the business
**Must file a declaration of cancellation (no cost - regular; $18.5-priority)
Advantages of Sole Proprietorship - Answer- make fast decisions
cheap
complete control
100% profit
easy to dissolve
not required to public disclosure
enjoyment and challenges of personal experience
Disadvantages of Sole Proprietorship - Answer- unlimited personal liability
tax on personal income
goodwill difficulties
Partnership (CCQ) - Answer- A business owned by two or more people. More liable to
personal loss
All partnership must register! s. 21(2)ALPE
