Question 1

A prospectus is prepared when:

		A corporation is recruiting directors
		A corporation is offering public shares
		A corporation is being wound up.

Question 2

A fiduciary duty can arise automatically.

		True
		False

Question 3

Because a partnership is not a separate legal entity, it cannot enter into legal relationships.

		True
		False

Question 4

The name of a sole proprietorship must be registered under the Business Names Act in Ontario.

		True
		False

Question 5

IT'S LATIN TIME! The doctrine of _________ ________ was the prevailing common law doctrine before consumer protection legislation.

		Caveat vendor
		Caveat emptor
		Ultra vires
		Intra vires

Q6 A partnership agreement is required to create a general partnership.

		True
		False

Question 7

An insurance policy is a contract that describes the types of losses covered as well as the reasons why the insurer may deny coverage.

		True
		False

Question 8

The Sale of Goods Act concerns itself, in part, with the transfer of title.

		True
		False

Question 9

Amir and Sebastian are partners in a general partnership selling graphic design services. Sebastian has invested significantly more money in the business than Amir, but Amir has greater responsibility for decision-making. Their business is run out of an office space they rent in Toronto. They do not have a partnership agreement; it can thus be said that Amir and Sebastian have joint and several liability, which means:

		Sebastian, as the partner with the highest financial share in the business, will be liable for all losses.
		All the profits and losses will be shared equally by Amir and Sebastian.
		Amir, as the partner with the greatest responsibility, will receive most of the profits.
		Amir and Sebastian divide liability equally and are also both liable for the firm's actions.

Question 10

Clicking an icon may bind you to a legally enforceable contract.

		True
		False

Question 11

Which of the following best describes a public corporation? (p. 227)

		A corporation whose shares are held by one person or a small group of people
		A corporation whose shares are offered for sale to the public
		A corporation whose shares are offered by agents to other agents
		A corporation whose shares are offered by a practicing licensee only

Question 12

The difference between a director of a corporation and an officer of a corporation is that directors are responsible for the running of the business.

		True
		False

Question 13

A corporation is prevented by law from accumulating debt.

		True
		False