Exam 14: Business Forms and Arrangements

Which of the following is a distinguishing characteristic of a product licensing arrangement?

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.Which of the following will the court most likely place a strong reliance on when arriving at a decision?

Under which circumstances will a court hold the shareholders personally responsible for the corporation's actions?

In what way are the danger of disagreement and the danger of divided authority similar?

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 legal capacity to borrow capital.

Discuss the distribution of profits of a corporation.

Which of the following would your business law professor most likely address during a discussion of the legal consequences of a sole proprietorship?

Which of the following would be affected by the subtle differences between a partner's joint liability and joint and several liability?

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.With respect to Ivan's use of "Voyageur Transport," which of the following most likely applies?

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

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

Gerald and Tanji are general partners in a partnership with Mafasa and Rolf,who are also partners but with narrowly defined rights.Which of the following accurately reflects the disadvantage Mafasa and Rolf share?

The fact that a corporation is a separate legal entity allows it to be fully shielded from compliance requirements with laws of general application.

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

Len,Jill,and Mark own a partnership called Splats.Len's capital contribution to the partnership was $25 000,Jill's was $12 500 and Mark's was $20 000.Jill is duly registered as a limited partner and has acted solely as a financier.There is no agreement on sharing profits or losses between the partners and none of them has drawn any income from Splats.The partnership borrowed $40 000 from the bank,but Splats eventually became insolvent and was unable to repay the loan.The bank sued Len and recovered the full $30 000 from him.When Len's lawyer gave him advice,what amount would he likely indicate Len is entitled to legally recover from Jill?

The form of ownership chosen for a business determines,among other things,the positioning of the financial liability for the business.Which of the following most strongly represents the priority that business owners ought to place on this choice?

Which of the following would be considered as a valid application of the Partnership Act provisions?

An arrangement whereby a manufacturer has agreed to provide products and a dealer has agreed to carry those products or perform services for the manufacturer would most likely be described as which of the following?

Rozzi,Shawn,and Rafael have entered into a written limited partnership agreement.In these circumstances,which of the following would be the most likely action needed to ensure legal recognition of the limited partnerships' status?

A business with no partners and no board of directors to report to is typically considered to be independent and positioned to act quickly when required.Which of the following would a law professor most likely indicate as also being typical of this form of business?