Canadian Business Law Today 1st Edition By Nancy Breen – Test Bank

Chapter 11
Banking, Creditors’ Rights, and Bankruptcy

True / False Questions

1. The federal Bank Act regulates all federally chartered Canadian and foreign subsidiary banks.
TRUE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

2. Every business needs a relationship with a financial institution.
TRUE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

3. Only federally chartered Canadian banks are considered financial institutions.
FALSE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

4. Trust companies, credits, and insurance companies are considered financial institutions.
TRUE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

5. Trust companies, credits, and insurance companies are not considered financial institutions.
FALSE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

6. The business and financial institution have their relationship set out in an account agreement.
TRUE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

7. Payday loan companies are registered financial institutions.
FALSE

Blooms: Remember
Learning Objective: 11-01 Understand the different financial institutions to which businesses have access.
Topic: 11-01 Financial Institutions

8. Electronic commercial transactions allow for a cashless business.
TRUE

Blooms: Remember
Learning Objective: 11-02 Understand electronic commercial transactions.
Topic: 11-02 Electronic Commercial Transactions

9. It may be less expensive for a business to accept cash over a credit card.
TRUE

Blooms: Remember
Learning Objective: 11-02 Understand electronic commercial transactions.
Topic: 11-02 Electronic Commercial Transactions

10. The law governing negotiable instruments is the Bills of Exchange Act.
TRUE

Blooms: Remember
Learning Objective: 11-02 Understand electronic commercial transactions.
Topic: 11-02 Electronic Commercial Transactions

11. A cheque is a bill of exchange drawn against a bank and payable on demand.
TRUE