John, James, and OtisNonfinancial Factors Situation: John and many other people have been very entrepreneurial lately. They are starting lots of businesses, but they are not always aware of business organization law that may spell out success or failure for their enterprises. Required: Answer the following questions by clicking on the answer cells and selecting true or false. 1. John, James, and Otis agreed to be partners in a for-profit business, though they never signed a written partnership agreement. Nor did they discuss who would have voting power. John invested $50,000 in the business, while James and Otis put in $25,000 each. If an important issue comes up, John will have the same voting power as James and Otis combined. 2. John, James, and Otis quickly blew through the $100,000 they had invested to begin their business. They are now considering bringing in Mary as a fourth partner because she has agreed to invest $50,000 in the business. Otis opposes bringing her in, but John and James will vote to do so. Mary will be added as a partner. 3. The pandemic of 2020 bankrupted the Altoss Glass Company, a proud manufacturing company that had been in business since 1914. Altoss left behind $44 million in debt. Its creditors will likely sue Altosss 122,500 shareholders to recoup that amount. 4. Santi has an idea for a business. He prefers to keep ownership and control in his own hands but is worried about the personal liability that might go with forming a sole proprietorship. Santi should choose an LLC over a general partnership. 5. Assume Santi chooses to form an LLC and soon learns that his skills as an inventor are going unused because he is so busy trying to run the business. Santi would like to focus on his inventing and put someone else in charge of running the business. If Santi appoints someone else to run the business, he must make that person a co-owner.

John and many other people have been very entrepreneurial lately. They are starting lots of businesses, but they are not always a of business organization law that may spell out success or failure for their enterprises. Required