Question

which of the following accurately describes one of the requirements for a business to qualify as a qualified small business corporation (qsbc)? multiple choice the corporation must be a ccpc that uses at least 50% of the fair market value of its assets for active business purposes in canada at the time the shares are sold. more than fifty percent of the fair market value of the assets of the business must have been used for active business in the past 36 months. the corporation must hire less than 5 full-time employees. the shares must not have been owned by another non-related individual in the past 24 months.

Answer 1

A QSBC must be a CCPC using at least 50% of its asset value for active business in Canada when shares are sold.

Step-by-step explanation:

One of the requirements for a business to qualify as a qualified small business corporation (QSBC) is that the corporation must be a Canadian-controlled private corporation (CCPC) that uses at least 50% of the fair market value of its assets for active business purposes in Canada at the time the shares are sold. This requirement seeks to ensure that the benefits provided to a QSBC, like certain tax advantages, are directed towards small to mid-sized businesses actively engaged in the Canadian economy.