Exam 14: Business Forms and Arrangements

Roy's partners,Safael and Matrim,equally share his unlimited liability for partnership debts and other obligations.

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.

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

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

A court has been asked to resolve a matter involving the disputed interests of partners regarding partnership property and their respective rights and duties in relation to the partnership.Which of the following would immediately provide the court with a basis for a decision?

In matters relating to Sheps & Shaps Law Offices,which of the following is a provision of the Partnership Act?

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

Briefly discuss the liability of the partners for a breach of contract,including,among other things,the key point from this perspective.

Which of the following is a characteristic of a franchisor-franchisee relationship?

When attempting to achieve the profit motive,consideration by an entrepreneur of the possible advantages flowing from each form of business vehicle is most likely to be derived by contrasting which of the following?

A description that includes triggering events,how each event is to be handled,and valuation of assets is most likely to indicate which of the following?

A creation of partnership clause in a partnership agreement would set out a description of the contributions of each of the partners,how shortfalls are to be handled,and how the accounts are managed.

Without the capacity to borrow capital in its own right,how do you think the form of Sebastian's business will be legally described in a lending agreement?

Sole proprietorships are limited to having to comply with provincial regulations with respect to registration or licensing requirements.

Partners are,both individually and to the extent of the partnership assets,accountable to third parties regardless of which of the following?

With respect to agency relationship and the Partnership Act,the term "partners" is synonymous with which of the following?

In what manner are a sole proprietorship and a partnership similar?

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.

Which of the following would a business law professor most likely identify as being an advantage of a partnership over a sole proprietorship?

Identify the basic issues that should be expressly addressed in a partnership agreement,including the description of each respective clause.Lastly,indicate when a partnership agreement would have to be revisited.