Question 1

Ingrid, Bridgit, and Manuel want to start a business selling used computers. Which of the following statements respecting their possible business name is true?

Accepted Answer

A) They can use the name "I.B.M. Used Computers" because they are using the initials of their own first names. 
B) They cannot use the name "I.B.M. Used Computers" because they are not incorporated. 
C) They can use the name "I.B.M. Used Computers" if they apply to incorporate the business. 
D) They can use the name "I.B.M. Used Computers" if they register the name as a partnership. 
E) They cannot use the name "I.B.M. Used Computers" because it would likely mislead the public. 
A) They can use the name "I.B.M. Used Computers" because they are using the initials of their own first names. 
B) They cannot use the name "I.B.M. Used Computers" because they are not incorporated. 
C) They can use the name "I.B.M. Used Computers" if they apply to incorporate the business. 
D) They can use the name "I.B.M. Used Computers" if they register the name as a partnership. 
E) They cannot use the name "I.B.M. Used Computers" because it would likely mislead the public.

Question 2

John Elliott and James Gardiner form a partnership to buy, repair and sell used cars. John is to do all the work; James supplies $10,000. They sign a limited partnership agreement limiting James's liability to $10,000 but do nothing else with the agreement. Which of the following statements is true?

Accepted Answer

A) A partners' liability can never be limited to $10,000 
B) James's liability could be limited but the failure to publicly register the limited partnership makes the limitation ineffective. 
C) James's liability is limited to $10,000 because he is a limited partner in the partnership agreement. 
D) Both A and B 
E) None of the above. 
A) A partners' liability can never be limited to $10,000 
B) James's liability could be limited but the failure to publicly register the limited partnership makes the limitation ineffective. 
C) James's liability is limited to $10,000 because he is a limited partner in the partnership agreement. 
D) Both A and B 
E) None of the above.

Question 3

Betsy Ross and Delia Smart were the only partners in a new business. Betsy contributed $100,000 to the business and Delia contributed $50,000. No thought was given as to how profits were to be divided. At the end of the first year the business made $30,000 profit, and Betsy had done 50% more work than Delia. How will the profits be shared?

Accepted Answer

A) As there was no express agreement, the Partnership Act will apply to establish the split. 
B) The split will be according to their respective contribution of capital, so Betsy will get $20,000 and Delia $10,000. 
C) The split will be according to their respective contribution of labour, so Betsy will get $18,000and Delia $12,000 
D) The split will be equal 
E) Both A and D 
A) As there was no express agreement, the Partnership Act will apply to establish the split. 
B) The split will be according to their respective contribution of capital, so Betsy will get $20,000 and Delia $10,000. 
C) The split will be according to their respective contribution of labour, so Betsy will get $18,000and Delia $12,000 
D) The split will be equal 
E) Both A and D

Question 4

A joint venture is an agreement between two or more independent businesses to cooperate on a particular project only.

Accepted Answer

A) True 
 B)False

Question 5

Mumtaz, Badia and Ilya are partners in a business partnership, called MBI. Mumtaz contributes $15,000 to the business, Badia contributes $10,000 and Ilya contributes $5,000. The partners agree among themselves that they will share partnership profits and losses in proportion to their contributions. In addition, the partnership borrows $30,000 from the bank. The business doesn't work out, and MBI is unable to repay the loan. Mumtaz pays the bank $30,000. How much can she recover from Ilya?

Accepted Answer

A) nothing 
B) $5,000 
C) $10,000 
D) $15,000 
E) $30,000 
A) nothing 
B) $5,000 
C) $10,000 
D) $15,000 
E) $30,000

Question 6

Kevin, a contractor, authorized Toby to conclude contracts for home renovation on his behalf. Each time Toby met with a potential customer, he would advise the customer that he was acting on behalf of Kevin. Toby concluded a contract with Myra to renovate her home for $1,000. On finding out about the contract, Kevin refused to carry out the renovation as he believed that the price agreed upon was too low. Which of the following statements is TRUE?

Accepted Answer

A) If Kevin refuses to do the work, Myra can sue him for breach of contract. 
B) Kevin is free to increase the price charged under the contract. 
C) Myra can sue both Kevin and Toby if Kevin refuses to perform the contract. 
D) If Kevin refuses to perform under the contract, Toby must complete the home renovations himself. 
E) Myra cannot sue Kevin for breach of contract as the contract was concluded with Toby. 
A) If Kevin refuses to do the work, Myra can sue him for breach of contract. 
B) Kevin is free to increase the price charged under the contract. 
C) Myra can sue both Kevin and Toby if Kevin refuses to perform the contract. 
D) If Kevin refuses to perform under the contract, Toby must complete the home renovations himself. 
E) Myra cannot sue Kevin for breach of contract as the contract was concluded with Toby.

Question 7

Which of the following statements respecting a limited partner is TRUE?

Accepted Answer

A) A limited partner is sometime called a silent partner. 
B) A limited partnership must always be registered. 
C) A limited partnership need not be registered if it contains the first and last names of the limited partner. 
D) Both A and B 
E) All of the above 
A) A limited partner is sometime called a silent partner. 
B) A limited partnership must always be registered. 
C) A limited partnership need not be registered if it contains the first and last names of the limited partner. 
D) Both A and B 
E) All of the above

Question 8

A franchise is a special kind of license which grants the rights to use trade marks, trade names and a business system for products and services.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would be the appropriate name for a limited liability partnership?

Accepted Answer

A) Ng and Chiu Association 
B) Ng and Chiu LLP 
C) Ng and Chiu Company 
D) Ng and Chiu Corp. 
E) Ng and Chiu Ltd. 
A) Ng and Chiu Association 
B) Ng and Chiu LLP 
C) Ng and Chiu Company 
D) Ng and Chiu Corp. 
E) Ng and Chiu Ltd.

Question 10

Joint liability means:

Accepted Answer

A) liability of a corporation but not the shareholders 
B) the same as several liability 
C) liability shared by a number of persons, each of whom is personally liable for the full amount of a debt 
D) liability shared equally between two persons 
E) liability of directors and the corporation they represent 
A) liability of a corporation but not the shareholders 
B) the same as several liability 
C) liability shared by a number of persons, each of whom is personally liable for the full amount of a debt 
D) liability shared equally between two persons 
E) liability of directors and the corporation they represent

Question 11

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is NOT such an implied term?

Accepted Answer

A) Each partner shall be responsible for the losses of the firm only to the limit of each partner's initial cash contribution. 
B) Every partner may take part in the management of the partnership business. 
C) No partner is entitled to a wage for acting in the partnership business 
D) No person may be introduced as a partner without the consent of all the existing partners. 
E) The partners will share the profits equally. 
A) Each partner shall be responsible for the losses of the firm only to the limit of each partner's initial cash contribution. 
B) Every partner may take part in the management of the partnership business. 
C) No partner is entitled to a wage for acting in the partnership business 
D) No person may be introduced as a partner without the consent of all the existing partners. 
E) The partners will share the profits equally.

Question 12

Unless the partnership agreement provides otherwise, a partnership can be dissolved when

Accepted Answer

A) a date is specified in the partnership agreement as to when partnership ends 
B) a partner dies 
C) a partner declares bankruptcy 
D) a partner gives notice of intention to withdraw and dissolve the partnership 
E) all of the above 
A) a date is specified in the partnership agreement as to when partnership ends 
B) a partner dies 
C) a partner declares bankruptcy 
D) a partner gives notice of intention to withdraw and dissolve the partnership 
E) all of the above

Question 13

A partnership is the relationship between two or more persons carrying on a business with a view to profit.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is TRUE?

Accepted Answer

A) when a partner dies, the partnership continues to exist and is not dissolved 
B) when a shareholder dies, the corporation continues to exist and is not dissolved 
C) when a shareholder dies, the corporation is dissolved 
D) when a shareholder dies, their shares are must be transferred to other existing shareholders 
E) shareholders owe each other a fiduciary duty 
A) when a partner dies, the partnership continues to exist and is not dissolved 
B) when a shareholder dies, the corporation continues to exist and is not dissolved 
C) when a shareholder dies, the corporation is dissolved 
D) when a shareholder dies, their shares are must be transferred to other existing shareholders 
E) shareholders owe each other a fiduciary duty

Question 15

What is the main reason a business is required to register its name with the provincial government?

Accepted Answer

A) To enable the government to monitor the number of businesses operating in the province. 
B) To enable any member of the public to search and discover the owner and address of the particular business. 
C) To enable a business to limit its liability 
D) To develop an information base for taxation purposes. 
E) To collect a registration fee as a form of business taxation 
A) To enable the government to monitor the number of businesses operating in the province. 
B) To enable any member of the public to search and discover the owner and address of the particular business. 
C) To enable a business to limit its liability 
D) To develop an information base for taxation purposes. 
E) To collect a registration fee as a form of business taxation

Question 16

A fiduciary duty exists in which of the following business relationships?

Accepted Answer

A) business partners to each other 
B) directors of a corporation to the corporation 
C) a professional advisor such as an accountants to their clients 
D) agent to a principal 
E) all of the above 
A) business partners to each other 
B) directors of a corporation to the corporation 
C) a professional advisor such as an accountants to their clients 
D) agent to a principal 
E) all of the above

Question 17

Which of the following with respect to partnership is TRUE?

Accepted Answer

A) Partnership is a separate legal entity. 
B) General partners have limited liability 
C) General partners have unlimited liability 
D) Partners are not agents for each other. 
E) Partners must make an equal financial contribution to the partnership. 
A) Partnership is a separate legal entity. 
B) General partners have limited liability 
C) General partners have unlimited liability 
D) Partners are not agents for each other. 
E) Partners must make an equal financial contribution to the partnership.

Question 18

Alf and Liz set up a partnership to manufacture plastic containers for washing golf balls. They needed $30,000 capital to purchase the machinery. On December 27, Jeff put $30,000 into the partnership for purchasing the machinery on the understanding that he would be a limited partner. Liz was to register the limited partnership but with the New Year and a week's holiday she didn't have an opportunity to do the actual registration until January 15. On January 6, Alf purchased the machinery but decided on an upgraded machine at $50,000. In February, when payments on the machine stopped, the vendor sued Jeff for $25,000, being the balance owing on the purchase contract. In this situation, Jeff would be responsible for which of the following amounts?

Accepted Answer

A) $25,000 
B) $5,000 
C) Noting 
D) $30,000 
E) $12,500 
A) $25,000 
B) $5,000 
C) Noting 
D) $30,000 
E) $12,500

Question 19

In a LLP if one partner defrauds their clients the other partners can be personally liable for the money owed to the client.

Accepted Answer

A) True 
 B)False

Question 20

Unless there are terms in the partnership agreement to the contrary, which of the following will dissolve a partnership?

Accepted Answer

A) A partner becomes insolvent. 
B) A partner wants to withdraw from the partnership 
C) A partner requests a change in the partnership agreement 
D) Both A and B 
E) All of the above 
A) A partner becomes insolvent. 
B) A partner wants to withdraw from the partnership 
C) A partner requests a change in the partnership agreement 
D) Both A and B 
E) All of the above

Ingrid, Bridgit, and Manuel want to start a business selling used computers. Which of the following statements respecting their possible business name is true?

John Elliott and James Gardiner form a partnership to buy, repair and sell used cars. John is to do all the work; James supplies $10,000. They sign a limited partnership agreement limiting James's liability to $10,000 but do nothing else with the agreement. Which of the following statements is true?

A joint venture is an agreement between two or more independent businesses to cooperate on a particular project only.

Which of the following statements respecting a limited partner is TRUE?

A franchise is a special kind of license which grants the rights to use trade marks, trade names and a business system for products and services.

Which of the following would be the appropriate name for a limited liability partnership?

Joint liability means:

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is NOT such an implied term?

Unless the partnership agreement provides otherwise, a partnership can be dissolved when

A partnership is the relationship between two or more persons carrying on a business with a view to profit.

Which of the following statements is TRUE?

What is the main reason a business is required to register its name with the provincial government?

A fiduciary duty exists in which of the following business relationships?

Which of the following with respect to partnership is TRUE?

In a LLP if one partner defrauds their clients the other partners can be personally liable for the money owed to the client.

Unless there are terms in the partnership agreement to the contrary, which of the following will dissolve a partnership?

Fundamental Rights

The Canadian Court System

Intentional Torts

Negligence

Making Enforceable Business Agreements

Important Terms and Contract Interpretation

Contract Defects and Breach of Contract

Special Business Contracts and Consumer Protection

Corporate Law and White-Collar Crime

Banking Disagreements and Secured Transactions

Bankruptcy

Employment Law

Intellectual Property and Computer Law

Real Estate and Insurance Law

Filters

Exam 9: The Organization of a Business

Ingrid, Bridgit, and Manuel want to start a business selling used computers. Which of the following statements respecting their possible business name is true?

A joint venture is an agreement between two or more independent businesses to cooperate on a particular project only.

Which of the following statements respecting a limited partner is TRUE?

A franchise is a special kind of license which grants the rights to use trade marks, trade names and a business system for products and services.

Which of the following would be the appropriate name for a limited liability partnership?

Joint liability means:

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is NOT such an implied term?

Unless the partnership agreement provides otherwise, a partnership can be dissolved when

A partnership is the relationship between two or more persons carrying on a business with a view to profit.

Which of the following statements is TRUE?

What is the main reason a business is required to register its name with the provincial government?

A fiduciary duty exists in which of the following business relationships?

Which of the following with respect to partnership is TRUE?

In a LLP if one partner defrauds their clients the other partners can be personally liable for the money owed to the client.

Unless there are terms in the partnership agreement to the contrary, which of the following will dissolve a partnership?

Fundamental Rights

The Canadian Court System

Intentional Torts

Negligence

Making Enforceable Business Agreements

Important Terms and Contract Interpretation

Contract Defects and Breach of Contract

Special Business Contracts and Consumer Protection

Corporate Law and White-Collar Crime

Banking Disagreements and Secured Transactions

Bankruptcy

Employment Law

Intellectual Property and Computer Law

Real Estate and Insurance Law

Filters