Only answers Business Law Chapter 7 Qui Xiang b 1. Which of the following is cor
ID: 346316 • Letter: O
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Only answers Business Law Chapter 7 Qui Xiang b 1. Which of the following is correct with respect to sole proprietorships? The sole proprietorship is a separate legal entity A sole proprietorship exists where two or more people carry on profits business together with a view t The sole proprietor has limited liability The sole proprietor has unlimited Bability A sole proprietorship must be incorporated 2. Which one of the following situations will result in a partnership existing? loe and Mary own a horse together and take turns riding it. A lawyer and a real estate agent split a commission. Employees are given bonuses because of increased profits. Joe pays back a debt to Harry by eiving Har Joe and Mary own a shoe store together and share the profits b. ry a percentage of the profits from his business. 3. Which of the following is the proper definition of a partnershi b. d. p as set out in the Partnership Act? Partnership exists where two or A partnership exists only where two or more people enter into a written agreement to be partners more persons carry on business in common with a view to profit. p is created where a corporation with shareholders is registered with the federal government A partnership is only created where the partners actually share the profits from a business A partnership exists where any business is carried on with a view toward profits 4. Chuck, Howard, and Ben decide to start a business venture, developing and distributing educational software. They agree that all three will be actively involved in the day-to -day management of the business. To determine their rights and obligations, they enter into a one-page agreement that provides only that each of Chuck, Howard, and Ben will receive 33.3% of the profits but also states specifically they are not to be viewed as partners. Based on these facts, which of the following statements is true? agreement b. are involved in the management of the business. c. only be able to collect 33.3% from any one partner because of the agreement. d. contributions. Chuck, Howard, and Ben will not be considered partners because of their express intention in their Chuck, Howard, and Ben will be considered partners in the eyes of the law, because they share profits and Chuck, Howard, and Ben will be considered partners, but someone claiming against the partnership will Chuck, Howard, and Ben are not partners because they do not share profits in proportion to their capital e. Chuck, Howard, and Ben are not partners because to be partners they must be professionals 5. Which of the following is correct with respect to the law of partnership? a. A partnership cannot be created inadvertently. b. Each partner is vicariously liable for the wrongful acts of their partners committed in the course of the partnership business c. Partners are only liable for the torts of their partners if they in fact knew that the wrongful conduct was taking place d. e. General partners have limited liability, meaning that they can lose up to the amount they have invested in the business. Joint and several liability means that each partner can be sued several times.Explanation / Answer
1 d - sole partnership has unlimited liability
2 e - combining with a business objective
3 a - refer above
4 b refer above
5 b Vicarious liability encompasses all partners
6 e outsiders nedd to be notified as they are stakeholders
7 b - factual .. definition
8 d shareholders can veto
9 b directors are supposed to perform in the best interest
10 Franchise is not only a name but all technical know how
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