Exam 24: Sole Proprietorships and Partnerships

For the last 14 months,Greer has been a junior partner in a Vancouver law firm.Until now he was receiving a monthly salary of $5000.Senior partners have just decided to stop all salaries because of a pending lawsuit against the firm.It was determined the firm would not make profits for at least the next eight months.Is the firm obliged to continue Greer's salary?

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(Multiple Choice)

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Question 1

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What steps should a retiring partner take to ensure that his or her liability as a partner is at an end?

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(Essay)

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Question 2

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The retiring partner should ensure that the partnership provides notice of his or her retirement to everyone whom it has dealt with prior to the partner's retirement,and also put a notice of his or her retirement in the official gazette of the province in which the partnership is carried on.Both are necessary steps to take to protect against transactions entered into the partnership after his or her retirement.

A partnership is treated as a separate entity with respect to

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(Multiple Choice)

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Question 3

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Which of the following is NOT a fiduciary duty owed by one partner to another?

(Multiple Choice)

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Question 4

Briefly describe the advantages of ensuring that any partnership agreement is reduced to writing.

(Essay)

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Question 5

Helen and George formed an equal partnership for the raising of flowers to sell at the county fair.After three seasons of mediocre results,George lost interest and only came around to "see how things were going." However,the fourth summer went very well for Helen and she made a large profit.Can George now claim half the profits?

(Multiple Choice)

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Question 6

For three years,John,Michael,and Mary have carried on a business that is charitable in nature.Each of them contributed capital to the business and has his or her duties set out in an agreement.The form of business that they have created is

(Multiple Choice)

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Question 7

Briefly describe the structure of an income trust and how it is created.

(Essay)

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Question 8

The court may upon an application by one or more partners order the partnership dissolved under which circumstance?

(Multiple Choice)

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Question 9

You are interested in creating a business and have a friend who is also interested in the same type of business,but you are not a professional and you feel that even the best of friends can have a falling out when they go into business together.Is there really any practical difference between considering a sole proprietorship and a partnership for your business?

(Essay)

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Question 10

Why is it practical to think of a partnership as having its own separate personality rather than just the collective rights and duties of all the partners?

(Essay)

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Question 11

Why should you register the partnership with the province?

(Essay)

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Question 12

You do not trust your partners and are concerned about liabilities you may incur if you continue to associate with them in business.To ensure that you are safe from any future liability toward third parties that did business with the partnership while you were a partner,you should

(Multiple Choice)

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Question 13

The type of unincorporated business that is usually owned by one person is called a partnership.

(True/False)

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Question 14

Fred is a partner in a land development partnership.He has learned independently of an opportunity to pursue a land development project with Nelly.Nelly refuses to be involved in business with Fred if he associates his partnership in the project.Nelly will do business with Fred only if he is independent of his partners.Fred will have no liability to his partners if

(Multiple Choice)

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Question 15

Bill and Joe agreed to form a partnership to carry on their goal of distributing food to the needy as a charitable endeavour.Is this a true partnership?

(Essay)

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Question 16

In Ontario,in the absence of a partnership agreement,the provisions of the Partnership Act apply to a general partnership.

(True/False)

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Question 17

A partnership is a business relationship between two or more persons,but not all business relationships between two or more persons are partnerships.

(True/False)

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Question 18

An individual who decides to carry on business in his or her name need not register the business.

(True/False)

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Question 19

Usually the sharing of profits is an indication of a partnership.In which of the following situations will this be TRUE?

(Multiple Choice)

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Question 20

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Exam 24: Sole Proprietorships and Partnerships

What steps should a retiring partner take to ensure that his or her liability as a partner is at an end?

A partnership is treated as a separate entity with respect to

Which of the following is NOT a fiduciary duty owed by one partner to another?

Briefly describe the advantages of ensuring that any partnership agreement is reduced to writing.

For three years,John,Michael,and Mary have carried on a business that is charitable in nature.Each of them contributed capital to the business and has his or her duties set out in an agreement.The form of business that they have created is

Briefly describe the structure of an income trust and how it is created.

The court may upon an application by one or more partners order the partnership dissolved under which circumstance?

Why is it practical to think of a partnership as having its own separate personality rather than just the collective rights and duties of all the partners?

Why should you register the partnership with the province?

You do not trust your partners and are concerned about liabilities you may incur if you continue to associate with them in business.To ensure that you are safe from any future liability toward third parties that did business with the partnership while you were a partner,you should

The type of unincorporated business that is usually owned by one person is called a partnership.

Bill and Joe agreed to form a partnership to carry on their goal of distributing food to the needy as a charitable endeavour.Is this a true partnership?

In Ontario,in the absence of a partnership agreement,the provisions of the Partnership Act apply to a general partnership.

A partnership is a business relationship between two or more persons,but not all business relationships between two or more persons are partnerships.

An individual who decides to carry on business in his or her name need not register the business.

Usually the sharing of profits is an indication of a partnership.In which of the following situations will this be TRUE?

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