1. Which of the following could lead to the formation of a partnership? a. My friend Leroy and I start a waffle business out of my van b. I make toques for the impoverished in my city c. I agree to find my neighbor's dog in exchange for $50 d. I am paid a significant annual bonus for my contributions to my source of employment 2. What term best describes the role of a limited partner a. Partners that receive a smaller portion of the partnership profits b. A partner that has full partnership rights subject to the vote of other partners c. A partner that makes an investment in the partnership for financial reasons d. A partner with limited ability to contribute to the partnership financially 3. Which of the following could not be considered an agent? a. A lawyer b. A parent negotiating a contract for you c. A priest d. An employee charged with particular responsibilities 4. Which of the following is the best answer? a. Shareholders report to directors b. Directors report to shareholders and officers report to directors c. Directors are elected to a two-year term in their position d. Directors carry out the day-to-day operations of a corporation 5. Which of the following is true of a sole partnership? a. It is governed by the Sole Proprietorship Act of Ontario b. It cannot hire employees c. It requires the owner to purchase business liability insurance d. It requires registration fees if it want to practice under a particular business name Question 1 The plaintiffs wanted some short-term investments and turned to Mr. Demmers, who had looked after their pension fund and insurance matters as a representative of Manulife. He persuaded them to invest in Devon, calling the corporation "a no-risk investment." This proved to be bad advice and the plaintiffs lost all of their funds. They unsuccessfully sought compensation from Demmers, who had become bankrupt. In this action the plaintiffs sought compensation from Manulife. It was clear that the plaintiffs thought Demmers was an employee of Manulife and that the Devon investment was one of Manulife's products, which it was not. A) What arguments could be raised by both parties and the likely outcome? B) Would it make any difference to your answer to know that Demmers was required to work for Manulife exclusively but he in fact was working for other parties? C) Manulife had taken pains to set out in their contract that Demmers was not an employee, but was an independent contractor how does this change potential liability Question 2 Yolanda comes to you seeking your legal advice. She wishes to start a clothing company along with her friends Navdeep and Chris. All three had met at George Brown College where they initially came up with the idea 2 years ago. The clothing line will focus on garments for boutique women's clothing shops. Yolanda wants to know how the business should best be set up. Please explain to Yolanda the three main forms of business organization - sole proprietorship, partnership, and incorporation. In your answer please identify the benefits and drawbacks of each of these forms of business organization. Explain which form of business organization you think is best for Yolanda, Navdeep and Chris Question 3 Please provide 3 points that distinguish a closely/ privately held corporation from a widely held corporation. Bullet points will be accepted here but they must be explained with respect to the differences between these forms of incorporation