9:09 0 X Quizzes - BUS2010-20W-Sec2-Business Law - eConestoga conestoga.desire2leam.com Test #3 Time Limit: 2:50:00 X Time Left:2:42:01 Gurinder Singh Rupal: Attempt 1 Question 17 (22 points) Elise, Adam and Thomas want to establish a restaurant called EATs. Elise is a retired bookkeeper and invested $20,000 in this venture. Adam and Thomas both invested $10,000. Elise is an excellent baker while Adam and Thomas graduated from culinary college and focus on the appetizers and main courses. They will all share equally in the work of the restaurant. Elise, given her background in bookkeeping, will do the financial records for the business. They heard about a local restaurant owner that went bankrupt due to an outbreak of food poisoning from his restaurant. Until then, Elise, Adam and Thomas planned to register their business name, lease the property, and buy the necessary equipment and supplies. After hearing about the other restaurant owner, they are very nervous and want to discuss what they can do to protect themselves. i. Identify and briefly explain the (relevant) business forms, including subtypes that are available to Elise, Adam, and Thomas, given the provided facts. (6 marks) ii. Provide two advantages and disadvantages for each of the business forms that you identified in part (i). Be thorough in your answer. (10 marks) iii. Which of these business forms would you recommend in the circumstances? Be sure to indicate why you would recommend it and why you would not choose the other(s), including any subtypes. (6 marks) A/ Section 3: Answer the following questions. Points listed on each question. Question 18 (14 points) O9:09 6 X Quizzes - BUS2010-20W-Sec2-Business Law - eConestoga conestoga.desire2learn.com Test #3 X Time Limit: 2:50:00 Time Left:2:41:53 Gurinder Singh Rupal: Attempt 1 Question 18 (14 points) John is planning on taking his family on a planned vacation. He is going camping. Unfortunately, on the day he is scheduled to leave, his truck with the trailer hitch breaks down. The truck will require repairs that will prevent John and his family from going on the vacation, and he will lose his deposit. John calls you to ask if he can borrow your truck to take his trailer camping. As John is driving into the campsite he misjudges the distance from a tree and scrapes the rear panel of the truck causing serious damage. Note: Please ignore insurance in answering this question. i. What responsibility does John have legally for the damage to your vehicle, and why? Please identify the correct term for each party. (4 marks) ii. Would John's responsibility be the same if he had rented the truck from a car rental business? Please identify the correct term for each party. (4 marks) iii. What would be your responsibility if John had borrowed your vehicle to go to a job interview? Would your "names" change from your answer in (i)? If so, what would each party be called? (4 marks) iv. Would your answer to part (i) be the same if the damage had occurred because of a storm that knocked down a branch causing the damage to the truck? If so, how and why would it be different? (2 marks) O