for business law expert , timed test, 50 multiple choice question

You are meeting with clients today who want you to make a recommendation for what form of business might be best for them.

There are two to them who want to run the company and there is at least one investor. The business is an organic soap company. What kinds of questions might you ask your clients in helping them with this issue?

Partner UP and discuss for 5 minutes.

Practice Questions

1. Eric and Amy form a partnership to sell Who-Hahs. Eric is making a delivery for the company and accidentally runs over Cydney. Cydney sues Eric for negligence and won. Which is true:

A. Amy is jointly and severally liable for Eric’s actions.

B. Amy is jointly liable for Eric’s actions.

C. Amy is severally liable for Eric’s actions.

D. Amy had nothing to do with the accident so she is not liable at all.

2. Sam is a limited partner in Metro Company and Lucy is a general partner, in a limited partnership, which cannot pay its debts. Sam is personally liable for the debts

A. To the fullest extent

B. To the extent of his capital contribution

C. In proportion to the number of other partners

D. To no extent

3. Mac is an accountant for Clorox Company. He is also a member of the Board of Directors. He makes an honest error in overestimating the company’s profits. This is

A. A breach of loyalty

B. A breach of care

C. Not a breach

D. A breach of both duty of loyalty and care