As you learned in the “All About You” feature, possibly buying shares in publicly traded companies is one financial decision you’ll need to make when you graduate. Another decision about your finances is whether you’ll work for someone else or be self-employed. After you have completed your post-secondary business education, you may be an entrepreneur and may need to decide if and when to incorporate your business. And if you decide to incorporate, you will also need to know more about how. 

Instructions 

Go to the website of Corporations Canada, part of Innovation, Science and Economic Development Canada, at http://corporationscanada. ic.gc.ca. 

a. What are the benefits of incorporating with the federal government? 

b. What kinds of businesses can incorporate under the Canada Business Corporations Act?

c. Who can form a corporation? 

d. Go to the section “Business corporations.” Answer the following questions: 

1. What are the steps to incorporating? 

2. What requirements must be met for a director? 

3. A corporation’s annual financial statement must be prepared in accordance with generally accepted accounting principles (GAAP). For Canadian corporations, where is GAAP set out? 

4. By what day do the annual financial statements have to be delivered to shareholders? 

5. How many classes of shares is a corporation allowed to have?

6. If a company has only one class of shares, what rights must those shares have? 

7. What corporate records are required to be kept by a corporation? 

8. Does a company have to appoint auditors?