Question 21(1 point)

Amarilla is willing to contribute capital to her son's new business enterprise. She has asked for qualified assurance of the return of her share capital if the entity winds down its business activities at some future time. Which of the following most likely provides the qualified assurance Amarilla is seeking?

Question 21 options:

	shares with financial rights for buyback at a set price
	preference shares with redemption rights
	shares with preferred rights on dissolution
	common shares with redemption rights
	redemption rights distributed among the classes of shares

Question 22(1 point)

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Jasmine is the sole shareholder of FashionPlusYou Inc. which is planning to borrow $100,000 from the bank to finance a second store location. What is Jasmine's legal position should FashionPlusYou Inc. default of the loan?

Question 22 options:

	Jasmine can be personally sued by the bank but only FashionPlusYou Inc. defaults on the loan.
	Jasmine's personal bank account will be seized.
	Jasmine and the corporation are jointly liable for the debt.
	Jasmine has no personal liability with respect to the debt.
	Jasmine and the corporation jointly and severally liable for the debt.

Question 23(1 point)

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What is the most likely reason, from a financial liability perspective, for a corporation to be viewed as the most risk-aversive form of business entity?

Question 23 options:

	Any entity that deals with a corporation may demand personal guarantees.
	It shields directors from negligent acts of management.
	It forms a distinct legal entity, liable for its own obligations.
	It provides limited liability to the corporation's directors.

Question 24(1 point)

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Which of the following is an example of the implied rules contained in thePartnership Act?

Question 24 options:

	Each partner is entitled to have their name in the partnership business name.
	Each partner may sue the other for breach of fiduciary duty.
	Each partner is a fiduciary to the other partners.
	Each partner may take part in the management of the business.

Question 25(1 point)

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Which of the following is most likely to be indicated by a description that includes among other things, the option to purchase a partner's interest and the valuation of the interests?

Question 25 options:

	a partnership agreement clause pertaining to dissolution of the partnership
	a clause in a partnership agreement that pertains to capital contribution of each partner
	a clause in a partnership agreement that addresses profit distribution
	a clause in a partnership agreement that avoids litigation and animosity
	a partnership agreement clause pertaining to changes in partnership

Question 26(1 point)

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Which statement best describes how a partnership comes into existence?

Question 26 options:

	Two or more people purchase property together.
	The partners must sign a written partnership agreement.
	The partners must register the partnership.
	Two or more persons carry on business together with a view to profit.

Question 27(1 point)

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Lita and Linda are partners in a general partnership and have borrowed $10,000 from the bank to finance their start-up. How is their liability for the bank loan best characterized?

Question 27 options:

	limited liability
	full and complete impunity
	proportional limited liability
	perpetual liability
	joint liability

Question 28(1 point)

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Which form of business organization provides for the most control but also the greatest liability risk for the owner?

Question 28 options:

	corporation
	partnership
	franchise
	joint venture
	sole proprietorship

Question 29(1 point)

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Merrilee and Keith's business own several acres of vacant land adjoining the property where their greenhouse operations and large garden centre facility are located. The greenhouse side of the business is ready to expand. A senior lending officer of ImaBigBank is meeting with Merrilee and Keith to discuss the expansion plans and the financial needs of the business. How will the parties most likely be described on the mortgage if ImaBigBank approves the financing?

Question 29 options:

	ImaBigBank is the mortgagee, and Keith and Merrilee's business is the mortgagor.
	ImaBigBank is the mortgagee, and Keith and Merrilee are the mortgagors.
	Keith and Merrilee's business as the mortgagee, and ImaBigBank is the mortgagor.
	Keith and Merrilee are the mortgagees, and ImaBigBank is the mortgagor.

Question 30(1 point)

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What is the legal effect of a financing condition in an offer?

Question 30 options:

	There is no contract until the vendor provides the seller with financing.
	The transaction will not proceed unless the buyer's lender grants a mortgage.
	The lender will be given control of the money needed to complete the deal.
	The lender must approve the price, deposit, and the method of payment.

Question 31(1 point)

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The Burtons are selling their home which has long standing basement flooding problems that have damaged the foundation. Before putting the home up for sale, they renovate the basement and the foundation crack is now behind a wall and cannot be seen. Which statement best describes the Burton's obligations toward potential buyers of the home?

Question 31 options:

	They have a moral duty to disclose the defect.
	They have an ethical duty but not a legal duty to disclose the defect.
	They do not have to disclose the crack unless they are asked about the condition of the foundation.
	They have a positive duty to disclose the hidden defect.
	They have no obligation to disclose anything to potential buyers.

Question 32(1 point)

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Frank and Wallace have been neighbours for ten years. Frank arranged to have a new garage constructed in his backyard. He provided the builders with his surveyors certificate, but after completion the garage encroached onto Wallace's land. What is most likely and amicable method of resolving the encroachment?

Question 32 options:

	civil litigation
	a restrictive covenant
	removal of the garage
	an easement agreement
	a lease

Question 33(1 point)

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John and Jackson are purchasing a property together and would like to register their title as joint tenants. What is the defining feature that distinguishes this form of ownership?

Question 33 options:

	The rights of the deceased owner would be inherited by the deceased's heirs.
	Each interest is subject to a right of survivorship and the rights of the deceased owner pass to surviving owner.
	The property would be subdivided and each half interest would be sold by auction.
	The survivor would have the right to buy out the deceased owner's interest.

Question 34(1 point)

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Orianna has applied for intellectual property protection for several of her choreographic works. The registrar advised that her application would have to meet the fixation requirement. Which of the following is most likely the source of the fixation requirement Orianna's application will have to satisfy?

Question 34 options:

	Copyright Act
	common law
	Industrial Relations Act
	Intellectual Property Act
	Trademark Act

Question 35(1 point)

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How does confidential business information maintain the protect of the law?

Question 35 options:

	by use
	by fixation
	by efforts to keep it secret
	by contract
	by registration

Question 36(1 point)

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How would a trademark application demonstrate title to a trademark?

Question 36 options:

	distinct mark
	inventive selection
	registrability
	ongoing use

Question 37(1 point)

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How will a trademark derive value if it is unregistered?

Question 37 options:

	from its creation, it provides broad protection on a geographically national level
	from a presumption of ownership and validity
	from its perceived goodwill, which is the subject to remedy by the tort of passing off
	from the ability to sue for infringement
	from its ability to prove identical trademarks in the case of a challenge

Question 38(1 point)

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BMB Ballistics Inc. invented a new compound for sheathing bullets and has been displaying and advertising its newly invented compound at trade shows across North America for the past two years. Why might DMB's patent application be unsuccessful?

Question 38 options:

	because its invention has already been disclosed publicly
	because the invention is a chemical compound
	because bullets are not a "new" invention
	because the sheathing does not work
	because items made of naturally occurring materials such as metals cannot be patented

Question 39(1 point)

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What is the term "intellectual property" synonymous with in law?

Question 39 options:

	non portable items
	real property
	pledged property
	tangible property
	intangible property

Question 40(1 point)

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Following his accounting firm's audit team being hired by Canuck Inc. to review Northern Ltd.'s books, Tyson contacted several members he knew in the profession, advising them to buy Northern's shares. Trading in Northern's stock notably increased in ensuing weeks, driving the share price up, making it more expensive for Canuck to complete the takeover and prompting the securities commission to investigate. What did the securities commission find with respect to Tyson?

Question 40 options:

	The firm will avoid vicarious liability, as Tyson acted independently.
	Tyson breached the fiduciary duty to maintain confidentiality of client information.
	The firm employing Tyson, not Tyson, owed a fiduciary duty to Canuck.
	The claimant's loss was too remote form the professional's actions.