Ontario Barrister and Solicitor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master the Ontario Barrister and Solicitor Exam with our comprehensive practice quiz. Tailored to the latest syllabus, it's the perfect tool to assess your readiness and ensure success.

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Can a CCPC pay an eligible dividend if it has a sufficient general rate income pool?

  1. Yes

  2. No

  3. Only with special approval

  4. Only to certain shareholders

The correct answer is: Yes

A CCPC (Canadian Controlled Private Corporation) is able to pay an eligible dividend if it has a sufficient general rate income pool. A general rate income pool is a tax account that tracks the income eligible for a lower corporate income tax rate. This allows CCPCs to distribute eligible dividends to shareholders. Therefore, options B, C, and D are incorrect as they state limitations or special circumstances that would prevent a CCPC from paying an eligible dividend. However, option A is the correct answer as CCPCs can generally pay eligible dividends if they have a sufficient general rate income pool.

More Questions Like This