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1) In 2006, Sally opened a restaurant called Traders' Place in rented premises In Ottawa's booming financial district. She operated the restaurant as a sole

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1) In 2006, Sally opened a restaurant called Traders' Place in rented premises In Ottawa's booming financial district. She operated the restaurant as a sole proprietorship. By 2012, the business had grown and she determined that she needed experienced help to run the business. In November 2012, Sally approached Marty to see if he would become the manager of the Traders' Place business. He agreed and the following were the terms of his agreement with Sally. Each month, Marty was paid $1000 plus 1 percent of the total restaurant revenues for that month. Total monthly revenues, on average, were about $100 000. At the end of each complete calendar year that Marty worked, if the restaurant had made a profit for the year equal to or exceeding $200 000, Marty was entitled to receive 10 percent of the profits. Marty was responsible for managing the restaurant, including opening and closing the restaurant, -hiring, firing and scheduling staff, and - ordering food and paying suppliers. Sally was responsible for the financial side of the business, including budgeting, accounting and payroll, as well as marketing. In 2013, Traders' Place profits exceeded $200 000 and Marty was paid 10 percent of the profits in accordance with the agreement. What type of business organization are Marty and Sally using to conduct their business? I 2) For over five years, Rick was the CEO of JB Guitars Inc., a corporation operating a chain of retail guitar stores. He had gained tremendous practical experience and decided to start his own business selling guitars. When he first started working at JB Guitars, Rick agreed not to carry on a competing business for two years after he ended his employment with the corporation. To avoid breaching that contract, Rick incorporated a corporation named Generation X Guitars Inc. to carry on the business. He is the sole shareholder, director and president. JB Guitars claims that the new corporation is just a way of getting around the non-competiiton agreement and has sued for a cour order prohibiting Generation X Guitars from carrying on a business competing with JB Guitars. Will JB Guitars be successful

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