Exam 14: Business Forms and Arrangements

A capital contribution clause in a partnership agreement would describe how profits are to be shared,how and when they are to be distributed,and rights of withdrawal.

A key feature of a partnership is that each partner is fully responsible for all of the debts and obligations of the business.

A sole proprietorship,a partnership,and a corporation may all be subject to double taxation,depending on the circumstances.

As with sole proprietorships,there are no legal requirements for the establishment and conduct of a partnership.

Briefly discuss how the law restricts the actions of a partner in relation to the partnership and its business activities.

Briefly discuss the advantages and disadvantages of the sole proprietorship as a form of business organization.

One of the advantages of being a sole proprietor is the ease by which the business can be sold or transferred to others.

Nancie is a shareholder in BlueSky Investments Inc.With respect to BlueSky's obligations,which of the following most likely reflects Nancie's liability?

What is a distinguishing characteristic of a joint venture arrangement?

Which of the following is a distinguishing feature of a limited partnership?

Which of the following would most likely be a requirement of provincial legislation with respect to a limited liability partnership?

The profits and losses in a sole proprietorship are simply reported on the owner's personal income tax return.

Voyageur Enterprises Inc.will continue in existence perpetually unless it is dissolved through voluntary surrender of its legal status or by court order for failing to comply with statutory regulations.

Why is an owner's choice of the form of business organization a critical decision?

What is the most likely reason,from a financial liability perspective,for a corporation to be viewed as the most risk-aversive form of business entity?

Which term is "partners" synonymous with regarding the agency relationship and the Partnership Act?

Which form of a business can issues shares to raise capital for operations?

All of Canada's common law provinces have a Partnership Act modelled on the British act of the same name.

Which of the following will be most influenced by restrictions contained in the incorporating documents or by a shareholders' agreement?

Ellayne manages a busy law practice as a sole practitioner.What is a major risk of Ellayne's choice of business form?