Exam 14: Business Forms and Arrangements

A court is deliberating whether WestWood Dental Offices should be bound by obligations that allegedly arose by virtue of apparent authority.The claim relates to a purchase agreement for dental imaging equipment.What will the court most likely strongly rely on when arriving at a decision?

The law restricts a partner from making a personal profit from partnership property because that would be putting that partner's interests ahead of the other partners.

Partners in a partnership are legally obliged to share profits and losses equally.

Ray and Mohammed are forming a general partnership but have not yet discussed how profits will be shared between them.Which statement best describes their legal situation?

Glen,Dale,and Al are partners who own Fizz.Glen made a capital contribution of $5000,Dale's was $15 000,and Al's was $10 000.Glen is a general partner and he oversees the management of the Fizz business.The partnership borrowed $30 000 from the bank.The partners have no agreement relating to the sharing of profits and losses.Fizz became insolvent and unable to repay the loan.The bank sued Dale personally and recovered the full $30 000 from him.Dale then sued Glen.When Dale's lawyer provided him with advice,what amount did she likely indicate he would be able to legally recover from Glen?

Which statement best describes the legal requirements for conducting a sole proprietorship?

Lita and Linda are partners in a general partnership and have borrowed $10,000 from the bank to finance their start-up.How is their liability for the bank loan best characterized?

Which of the following is a common characteristic of provincial Partnership Acts?

Ivan is the sole proprietor of Voyageur Transport.He operates Voyageur with three small ships that transport supplies by the riverways to northern settlements after spring breakup.Which of the following most likely applies with respect to Ivan's use of the name "Voyageur Transport"?

The president of EcoAgents must affix the company's corporate seal to the bank's lending agreement he signed because this form of business entity lacks the legal capacity to borrow capital.

A partnership is a simple form of legal relationship that automatically arises when two or more people do business together with the objective of making a profit.

What is a strategic alliance between commercial parties?

In the context of a business failure,a bankrupt sole proprietor's diminished credit rating will likely be enduring.

Which of the following would pertain to provincial partnership legislation relating to the relationship between business partners and outsiders?

Triston and Quinn jointly own property under a documented agreement.If a dispute arises between the parties,which of the following would immediately alert a lawyer to the possibility of a court concluding a partnership exists?

Identify the factors a court would rely upon to determine whether or not a relationship is a partnership.

Aaron owns a food truck that he takes to various festivals each summer.He has not filed any documents at the registry and is the only owner of the business.In law,how is Aaron's business characterized?

Discuss the distribution of the profits of a corporation.

The vehicle most commonly used as an investment device is a limited liability partnership,in which at least one partner has unlimited liability and the rest have limited liability.

Why are limited liability partnerships advantageous to professional partnerships?