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
expand_more
expand_more
format_list_bulleted
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 partnership firm.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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)
Knowledge Booster
Similar questions
- Dennis is the oldest among the four shareholders and is in the poorest health. He is concerned that upon his death his wife will be stuck with the shares, because there will be no market for them. However, he would like her to be able to use the proceeds from selling the shares for living expenses. For their part, Able, Baker, and Carter like Mrs. Dennis, but are not interested in being co-owners of the business with her. And they certainly do not want her to sell Dennis's shares to an unknown third party. So, they four have agreed that upon Dennis's death, Mrs. Dennis will be obligated to sell one third of the shares to Able, one third to Baker, and one third to Carter. Able, Baker, and Carter agree to buy the shares at a price figured according to a predetermined formula. What kind of transfer restriction is this? Multiple Choice Option agreement Right of first refusal Provision disqualifying purchasers Buy-and-sell agreement Consent constraintarrow_forwardXavier and Ciara form a corporation to provide cleaning services to local businesses. After two years of trying to make a go of the business, the profits they had hoped for are just not there. Xavier and Ciara decide to dissolve the corporation and go their separate ways. To terminate the corporate entity, Xavier and Ciara must: Choose three. -Pay the corporate debts and distribute remaining funds to themselves -File articles of dissolution with the state -Seek a court order for dissolutoin -Vote to terminatearrow_forwardEvelyn, Francis and George, run a business buying and selling wigs. They have been advised by their lawyer to form a private limited company to run the business. They have contacted you for a second opinion, particularly in respect of: 1. The extent to which their liability will be limited; 2. Wether they will be able to exercise the same control over the private company as they did with the partnership.arrow_forward
- Subject: acountingarrow_forward7arrow_forwardHo, Io, and Jo formed an ordinary partnership, called 3OS, some 5 years ago. Question Ho is a sleeping partner, whereas Io and Jo are active in the running of the business. Ho’sliability for partnership debts was agreed between the partners to be limited to the amountof his capital contribution, £15,000.Which of the below best describes the liability of Ho, Io, and Jo for partnership debts?A It is joint and several which means that several of the partners can be sued and since Ho isa sleeping partner he is not liable for any of the debtsB It is joint and several which means that all partners, excluding Ho, have unlimited personalliability and could be sued and required to pay the full amount of all the debtsC It is joint and several which means that all partners, including Ho, are responsible for ashare of the partnership debts in the same proportion as they share out the profitsD It is joint and several which means that each and every partner, including Ho, is fully liablewithout…arrow_forward
- Number 20: Which of the following is a nonwrongful dissociation?arrow_forward1.Subject to the terms of the Deed of Trust, the Appointor of a trust can ordinarily nominate a replacement "Appointor " in their Will? True False 2.Which of the following structures would you recommend as a tool by which an individual after their death can ensure the continued care of a disabled family member, whilst ensuring it does not consequentially risk the continued entitled to pensions or other government entitlements? Testamentary trust Life interest Deed of Family Arrangement Family trust Superannuation fund 3. Subject to the terms of the Deed of Trust, an individual Trustee of a trust can ordinarily nominate a replacement "Trustee" in their Will? True or False?arrow_forwardThe 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_forward
- Mr. 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_forwardA couple who own their own residential property as joint tenants run into marital trouble and separate. The husband immediately changes his will so that, rather than everything passing to his estranged wife on his death, it now goes to his brother and sister in equal shares. He is killed in a traffic accident before any settlement is reached on the house. a) Explain who is entitled to the husband’s share of the house and why. b) Explain who would be entitled to his share if the couple had owned the house as tenants in common and why. Ignore any family law issues. (Explain the operation of the Australian legal systems and processes relevant to property law including: basic principles, current statute, common law and equitable principles; roles and responsibilities of key organisations; constitutional considerations; separation of powers; basic principles of the law of torts, particularly relating to negligence and negligent misstatement, courts and regulatory bodies).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education