Ontario Barrister and Solicitor Practice Exam 2025 - Free Barrister and Solicitor Practice Questions and Study Guide

Question: 1 / 400

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

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.

Get further explanation with Examzify DeepDiveBeta

No

Only with special approval

Only to certain shareholders

Next Question

Report this question

Download Ontario Barrister and Solicitor Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy