Exam 14: Business Forms and Arrangements

Ellayne manages a busy law practice as a sole practitioner.With regard to business risk management,where should serious consideration be given to have broad benefit for Ellayne?

A description that includes,among other things,the option to purchase a partner's interest and the valuation of interests is most likely to indicate which of the following?

How does the principle of limited liability make the corporation well suited to raising large amounts of capital?

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

Emily,Harry,and Ron are partners in a business partnership called Trinkets.Emily contributed $15 000 to the business,Harry $10 000,and Ron $5000.The partners agreed among themselves that they will share partnership profits and losses in proportion to their contributions.In addition,the partnership borrowed $30 000 from the bank.The business didn't work out,and Trinkets is unable to repay the loan.The bank sued Emily personally.She repaid the full $30 000 and then sued Harry and Ron.Which of the following are the amounts Emily may legally be entitled to recover from her partners?

Identify and briefly explain what feature of a corporation allows for easy transfer of ownership,how ownership is transferred,and the source of restrictions,if any,on the transfer of ownership.

Investors in a corporation are paid a return on their capital investment if there is profit and if the directors declare a dividend.

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

Income tax on corporate revenue is assessed to the corporation,while dividends and salaries are taxable in the hands of the directors.

Which of the following describes the most likely sources of regulation a partnership must be aware of as it conducts its business each day?

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

Identify the situations in which a court applying the Partnership Act would find a relationship to be something other than a partnership.

In circumstances involving a wrongful act or omission of a partner acting within the course of employment,which of the following would a business law professor identify as the type of liability flowing to the other partners?

If your business law professor discusses the laws that specifically govern the relationship between partners and third parties,what might you reasonably expect him to identify as the source of those laws?

What is the significance of a limited liability partnership for practising professionals in Quebec and Manitoba?