Question
QUESTION 1 Lisa started a small catering business in her home. She worked on her own. This business is a: a. General partnership. b. Corporation.
QUESTION 1
Lisa started a small catering business in her home. She worked on her own. This business is a:
| a. | General partnership. | |
| b. | Corporation. | |
| c. | Sole proprietorship. | |
| d. | Limited liability partnership. |
QUESTION 2
If Lisa wanted to call her business "Lisa's Lunches", she would have to register under the:
| a. | Partnership Act. | |
| b. | Corporations Act. | |
| c. | Sole Proprietors Act. | |
| d. | Business Names Act. |
QUESTION 3
If Lisa's Lunches borrowed $15,000 from the bank to pay someone to develop a website for her, and could not repay the loan out of business revenue, how much would Lisa be personally liable for?
| a. | As much as she invested in the business | |
| b. | Zero | |
| c. | $20,000 | |
| d. | $15,000 |
QUESTION 4
Lisa's sisters, Janice and Elana, decided to join her in the business. They did not have a formal arrangement, but each sister contributed some money so they could rent a commercial kitchen and expand the business. Lisa contributed $15,000, Janice contributed $10,000 and Elana contributed $5,000. What kind of business is this?
| a. | Sole proprietorship | |
| b. | Limited partnership | |
| c. | General partnership | |
| d. | Limited liability partnership |
QUESTION 5
The sisters catered a party where the guests got food poisoning from contaminated meat. The client sued the business for $30,000. How much could Lisa be required to pay?
| a. | $10,000 | |
| b. | $15,000 | |
| c. | zero | |
| d. | $30,000 |
QUESTION 6
How much could Lisa recover from Elana?
| a. | $5,000 | |
| b. | $30,000 | |
| c. | $10,000 | |
| d. | zero |
QUESTION 7
Doreen, the sisters' mother, wanted to help her daughters succeed so she invested $20,000 in their business. She wanted to participate in the profits but did not want to be involved in running the business. What kind of business structure is this?
| a. | General partnership | |
| b. | Limited partnership | |
| c. | Limited liability partnership | |
| d. | Corporation |
QUESTION 8
If a customer sued the business for $30,000, how much would Doreen have to pay?
| a. | $7500 | |
| b. | Zero | |
| c. | $30,000 | |
| d. | $20,000 |
QUESTION 9
Lisa hired a law firm, Kerbel Caplan LLP, to defend the lawsuit referred to in question 8, but Kerbel, her lawyer, missed a deadline and the business lost the lawsuit. If Lisa sued Kerbel Caplan LLP for $ 40,000 for professional negligence, how much would Caplan, the other partner, be responsible for?
| a. | $20,000 | |
| b. | $10,000 | |
| c. | $40,000 | |
| d. | Zero |
QUESTION 10
Lisa decided to incorporate Lisa's Lunches Limited. The three shareholders are Lisa, Janice and Elana; each contributed $10,000 in exchange for 1000 shares of the company. If Lisa's Lunches Limited could not repay its bank loan of $50,000, how much would Lisa be personally responsible for?
| a. | Zero | |
| b. | $10,000 | |
| c. | $16,666 | |
| d. | $50,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Physics
Authors: Alan Giambattista, Betty Richardson, Robert Richardson
2nd edition
77339681, 978-0077339685
