Rachi Is a Wealthy Businessperson with Substantial Personal Assets

Multiple Choice

Rachi is a wealthy businessperson with substantial personal assets. One of the businesses she carries on is a health club. She has carried on this business as a sole proprietorship, but she has decided to incorporate a corporation under the Canada Business Corporations Act to carry it on. She will be the sole shareholder and director. If you were a client of the health club, which of the following would be a legitimate concern based on the change in the legal status of the health club business?

A) The risk that any claim you might have against the business will not be paid will increase.
B) Standards for cleanliness and service quality will decline.
C) Management personnel will change.
D) Prices for annual memberships will go up.
E) You will not be able to complain to Rachi about any problems you have with the operation of the health club.