Exam 14: Business Forms and Arrangements

The law restricts a partner from making a personal profit from partnership property because that would be putting that partner's interests ahead of the other partners.

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

Which of the following is most likely to be indicated by a description that includes triggering events, how each event is to be handled, and a valuation of assets?

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

The freedom from the restrictions of personal legal responsibility for the obligations of the business is a tremendous advantage to the sole proprietor.

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

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

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

What is the source of the laws that specifically govern the relationship between partners and third parties?

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

Which of the following is a provision of the Partnership Act in matters relating to Sheps & Shaps Law Offices?

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

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. Which of the following most likely applies with respect to Ivan's use of the name "Voyageur Transport"?

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. What will the court most likely strongly rely on when arriving at a decision?

Briefly discuss the significance of "going it alone" with respect to raising capital for a business.

How will the form of a business be legally described in a lending agreement if the business does not have the capacity to borrow capital in its own right?

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 the legal capacity to borrow capital.

What is the term for 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?

What priority must business owners place on the choice of the form of ownership for their business?

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