Contemporary Canadian Business Law

Business

Quiz 16 :

Law of Sole Proprietorship and Partnership

Quiz 16 :

Law of Sole Proprietorship and Partnership

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Jim, Rob and Emily are partners in a limited liability partnership where they practise law. Jim's initial contribution was $30,000, Rob's was $20,000 and Emily's was $10,000. The partners agree that profits and losses will be shared in proportion to their capital contributions. Jim is sued $60,000 for negligence. How much can he collect from Rob?
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E

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Limited partnerships are generally subject to specific legislation, providing that
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E

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When Peter gave notice to Paul and Mary of dissolution of their entertainment partnership business, the capital accounts were as follows: Peter: $30,000 Paul: $50,000 Mary: $20,000 The partnership assets were liquidated to $30,000. Outstanding liabilities to third parties totaled $39,000. Peter, Paul and Mary will each respectively receive:
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B

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Greg, Mike, and Charlie carry on business in partnership as "tree surgeons." Serena contacted Greg and arranged to have a large tree removed from her front yard on a Saturday morning. Greg arrived, and cut the tree in such a way that it fell on Serena's house, causing considerable damage. If the partnership is held liable for Serena's loss, Mike and Charlie would be entitled to recover the loss from Greg, because Greg was careless in doing the work.
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Harry, Clyde, and Pete carried on business in partnership as hardware merchants. Clyde, who did most of the purchasing of stock for the partnership, would occasionally purchase (using his own money) an extra quantity of some items that could readily be sold to consumers. He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage. Harry and Pete were unaware of Clyde's actions, as Clyde had not revealed his weekend business activity to either Harry or Pete. Harry and Pete are entitled to claim their share of the profits earned by Clyde from his weekend selling activity.
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Greg, Mike, and Charlie carry on business in partnership as "tree surgeons." Serena contacted Greg and arranged to have a large tree removed from her front yard on a Saturday morning. Greg arrived, and cut the tree in such a way that it fell on Serena's house, causing considerable damage. Serena may bring an action against Greg, Mike, and Charlie for the negligence of Greg.
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The partnership form of business organization should be entered into with caution because
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Jim, Rob and Emily are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000 and Emily's was $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. Jim pays the entire $60,000 debt to the Vancouver Credit Union. How much can he collect from Rob?
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Zack was a partner in a management consulting firm that specialized in assisting small businesses in the area of financial planning. The firm did not perform income tax services. However, since Zack had personal expertise in tax accounting, he frequently assisted friends, as well as some firm clients, in preparing their income tax returns. Usually he borrowed the firm's adding machine and other office supplies to perform this work from his home unbeknownst to his partners. Zack may be required to
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Sunny is a sole proprietor operating a flower shop. She called the shop Sunny Daze. Does she have to register the name of the business?
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In the absence of any express or implied agreement to the contrary,
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Jim and Rob are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000. Emily is a limited partner who contributed $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. Jim pays the entire $60,000 debt to the Vancouver Credit Union. How much can he collect from Emily?
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Sandra, Allison, and Colette joined in partnership to provide commercial marketing research services. Allison became dissatisfied with the relationship and unilaterally assigned her interest to Katrina. Which of the following are true?
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Unless there is an agreement to the contrary in the partnership agreement, which of the following events will automatically bring a partnership to an end?
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Greg, Mike, and Charlie carry on business in partnership as "tree surgeons." Serena contacted Greg and arranged to have a large tree removed from her front yard on a Saturday morning. Greg arrived, and cut the tree in such a way that it fell on Serena's house, causing considerable damage. Only Greg is liable, because he cut the tree on a Saturday morning.
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In a limited partnership, which of the following are true?
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A partner
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Jim, Rob and Emily are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000 and Emily's was $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. What is Jim's liability to Vancouver Credit Union?
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Harry, Clyde, and Pete carried on business in partnership as hardware merchants. Clyde, who did most of the purchasing of stock for the partnership, would occasionally purchase (using his own money) an extra quantity of some items that could readily be sold to consumers. He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage. Harry and Pete were unaware of Clyde's actions, as Clyde had not revealed his weekend business activity to either Harry or Pete. Because Clyde was not selling the goods in the area where Harry, Clyde, and Pete carry on business, he is entitled to keep his profits.
True False
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Greg, Mike, and Charlie carry on business in partnership as "tree surgeons." Serena contacted Greg and arranged to have a large tree removed from her front yard on a Saturday morning. Greg arrived, and cut the tree in such a way that it fell on Serena's house, causing considerable damage. Only Greg would be liable, because he did not inform Mike and Charlie of the agreement he made with Serena.
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