The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Question
Chapter 16, Problem 2IS
Summary Introduction
Case summary:Person D and person E are partners in an architectural firm. Person D dies and his widow alleges that she is entitled to the position of D in the firm or to receive a share of profit that is earned by the firm.
To find: The entitlement of the widow of person D for the position in the
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A, B and C were in general partnership business. Because of wrong decision taken by Mr.C the business got losses, which even the business assets cannot cover those liabilities and all of the partners will be subjected for unlimited liabilities. Who will be liable for the business debts and has to use personal property to pay for the losses.
Select one:
a.
Partner B
b.
Partner C
c.
Partner A
d.
All the partners
Rebecca, age 53, died suddenly of a heart attack. She leaves behind her husband Chris and her three teenage sons, Calvin, Cameron and Craig. Rebecca does not have a will and leaves behind the following assets:
House $800,000 (Joint Ownership with Chris)
Non-registered Portfolio $273,593 (Individually owned)
RRSP $370,068 (Beneficiary: Chris)
Life insurance $309,927 (Beneficiary: Estate)
Assuming that Rebecca lives in Ontario, how much will each of her sons inherit from her estate?
Round your answer to the nearest dollar.
To Partner or Not to Partner
John Willis, who is 27 and single, had just completed his fifth year of employment as a carpenter for a very small homebuilder. His boss, the sole owner of the company, is Tyrone Young. A few days ago, Tyrone asked John if he would like to become a partner, which he could do by contributing $70,000. In turn, John would receive 40 percent of all prof- its earned by the business. John had saved $30,000 and could borrow the balance from his grandmother at a low-interest rate, but he would have to pay her back within 15 years.
John was undecided about becoming a partner. He liked the idea but he also knew there were risks and concerns. He decided to talk to Tyrone at lunch. Here is how the conversation went.
John: I've been giving your offer a lot of thought, Tyrone. It's a tough decision and I don't want to make the wrong one. So I'd like to chat with you about some of the problems involved in running a business.
Tyrone: Sure. I struggled with these issues…
Chapter 16 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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- The following statements are true, except * -A limited partner is liable for partnership debts up to the extent of his capital contribution -An industrial partner can also be a capitalist partner at the same time. -An industrial partner who engages in business for himself can be excluded from the partnership. -A capitalist partner may engage in the same line of business as that of the partnership -answer not given The following partnership accounts represent a liability of a partner to the partnership, except * -Receivable from partner -Loan to partner -Due from partner -all of the above -answer not given A partner’s capital account is credited for the following transactions, except * -Share in net income -loan from the partner -Original and additional investment -both A and C -answer not givenarrow_forwardMr. Salim and Mr. Nassir started a limited partnership business. Both agreed that Mr. Salim will be a general partner and Mr. Nassir will be a limited- liability partner. The business could not run successfully and closed after 2 years. It had debts/loans of OMR 20,000 while business assets only were sold for OMR12000. Who will pay the remaining OMR 8000 difference? a. No partner will pay this remaining difference b. Mr. Salim because he is a general partner and fully liable c. Both partners will pay equally d. Mr. Nassir because he is a limited-liability partner and fully liablearrow_forwardNasser and Khalil are partners in a bike business. One of their bike models malfunctioned and many customers were injured as a result. If they operate their business, Nasser & Khalil's Bicycles, an LLPS (Limited Liability Partnership), neither the business nor the O partners would be liable for the injuries. they would be personally liable for the injuries. the business would not be liable for the injuries. they would not be personally liable for the injuries.arrow_forward
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