1) Is a Partnership more like:

____ A) A Sole Proprietorship

____ B) A Corporation

2) In a Partnership, is each partner personally liable for the debts, actions, and obligations of the other partners incurred on behalf of the Partnership?

____ A) Yes

____ B) No

3) Could the following have 1,000 employees?

A Sole Proprietorship - Yes ____

No ____

A Partnership - Yes ____

No ____

4) Two individuals operate a business as a Partnership. They have not entered into a Partnership Agreement that clearly sets out their rights and obligations as between them. Their rights and obligations are therefore determined by the laws established in the Canadian Province in which the business operates. Which of the following are then accurate?

____ A) The Partners share equally in the profits of the business.

____ B) The Partners have an equal say in management decisions.

____ C) Each Partner is taxed individually for his share in the business.

____ D) The Partnership will automatically dissolve (end) upon the death or bankruptcy

of a partner.

5) Partners are viewed as agents for each other. They have a Fiduciary Duty (a duty of trust) that requires them to act in the best interests of the partnership. Which of the following are accurate?

____ A) A partner must disclose any conflict of interest.

____ B) A partner must not compete with the partnership.

____ C) A partner must not take personal advantage of information that becomes

available to him through the partnership.

____ D) None of the above are accurate.

6) Corporations are created by government legislation and then have the legal abilities of a natural person. Which of the following are accurate?

____ A) A Corporation is a distinct legal entity.

____ B) A Corporation may own land, borrow or lend money, carry on business, and sue

or be sued in its own right.

____ C) The Investors or Shareholders of the Corporation have limited liability - that is,

they are not personally liable as a sole proprietor would be.

____ D) A Corporation has the potential for an unlimited life... it does not end with the

death of shareholders.

7) Ownership interest in a corporation is obtained through the purchase and holding of shares in the corporation.

True ____

False ____

8) Shareholders make money as investors in two ways. One, the value of their shares may increase. Two, profits earned by the corporation from its business activities will result in its distribution by way of payments to the shareholders based on the number of shares held. The payments are called:

____ A) Annual Payments

____ B) Preferred Payments

____ C) Dividend Payments

____ D) Accrued Payments

9) As between the Shareholders and the Directors of a corporation, who owns the corporation?

____ A) The Directors

____ B) The Shareholders

10) Which of the following are accurate?

____ A) The Directors of a corporation are responsible for managing the business.

____ B) The Directors must act and make decisions that are in the best interests of the

corporation.

____ C) The Directors report to the Shareholders.

____ D) The Shareholders appoint the Directors and can fire the Directors.

11) As between a Director and a Shareholder, who has more real power?

____ A) The Director

____ B) The Shareholder

12) Which of the following offers its shares for sale on the Stock Market?

____ A) A Private Corporation

____ B) A Public Corporation

13) Which of the following is a business arrangement formed by a written agreement in which one party, wishing to expand into a new market, grants to another party, wanting the opportunity to run his or her own business, - its trade name, trademark, and operating procedures to operate a similar business?

____ A) A Satellite Corporation

____ B) A Corporate Subsidiary

____ C) A Corporate Division

____ D) A Franchise

14) Employment Law is the laws and regulations that govern the employer/employee relationship. Which of the following are accurate?

____ A) Businesses need to be aware of their own rights.

____ B) Businesses need to be aware of the rights of those they employ.

____ C) Businesses' failure to be aware of Employment Law issues can mean a

significant drain on time and financial resources, along with serious legal

implications for the business.

____ D) None of the above accurately reflect issues of Employment Law.

15) An Employee is a person who is given direction and supervision along with the resources to do the job for an Employer in exchange for money for the work done. An Independent Contractor also performs service for an employer for which he is paid. Which of the following apply to an Independent Contractor?

____ A) He renders an invoice or bill to the employer for the service performed.

____ B) He is not covered under the employer/employee relationship.

____ C) The service rendered is dictated by a quote or contract.

____ D) An Independent Contractor is not directly involved in the operation of the

business.

16) Labour Laws in Canada (federal and provincial) govern the relationship between employers and employees. Which of the following represent issues governed by government laws and regulations?

____ A) Workplace Health and Safety

____ B) Human Rights

____ C) Working Conditions - hours of work, wages, vacation, holidays

17) An Employment Contract is an agreement, outlining the specifics of an employer's and employee's responsibilities for a period of time. Which of the following are accurate?

____ A) The contract can be written or verbal.

____ B) In Canada, a contract for a fixed period of one year or more must be in writing.

____ C) A contract may contain conditions, promises, and restrictions of the employee

with regard to the business.

____ D) If employees are unionized, the contract shall be between the employer and the

union acting on behalf of the employees.

18) Dismissal occurs when an employer informs an employee that they are no longer employed at the business. An employee can be dismissed for Just Cause. However, when an employer does not have the basis to dismiss an employee under the employment contract or under a statute of law, this is known as:

____ A) Unjust Dismissal

____ B) Constructive Dismissal

19) Which of the following are accurate statements about Constructive Dismissal?

____ A) The employee has not been fired.

____ B) The employee believes that the employer has not complied with the terms of the

employment contract.

____ C) The employee believes that the employer has significantly changed the terms of

the employment contract.

____ D) The employee's position within the business has been made so difficult by the

employer that the employee is effectively forced to quit.

20) An employer who suddenly decides to end his business and thereby terminate the employment of his employees, is nevertheless responsible to provide Severance Pay to his employees based upon a formula that takes into consideration the employee's current salary and number of weeks or years employed.

True ____

False ____

21) Which of the following are accurate statements about a Union?

____ A) A Union is a collection of employees in a trade or employment organization

formed to protect and further the rights and interests of the employees through

the negotiation with the employer.

____ B) The Union seeks to attain a legal document between the employees and

the employer outlining the rights, terms, benefits, and conditions of

employment and which document is called A Union Contract or Collective

Agreement.

____ C) The employer cannot prevent its employees from forming a Union.

____ D) The Labour Relations Board (a government agency) can approve and formally

recognize the creation of a Union by union certification.

22) A Strike is a work stoppage in a unionized environment. If an existing collective agreement between the union and the employer has expired and the workers refuse to work, this is known as:

____ A) A Legal Strike

____ B) An Illegal Strike

____ C) A Wildcat Strike

____ D) A Lockout

23) In Employment Law, as in other areas where parties have entered into a contractual relationship, differences between them can ultimately be settled by the commencement of legal proceedings through the courts. Today, parties often seek faster and less costly means to solve disputes. There are two major types of Alternative Dispute Resolution solutions.

A) When a third party is engaged to merely assist the parties in coming to an agreement.

- and -

B) Where a third party is engaged to actually make a decision that binds the parties to an agreement.

Is B, above, an example of:

____ Mediation

- or -

____ Arbitration

24) A Union may be certified by the government even if not all of its employees have voted for the creation of a union. However, once created and certified, a Union then negotiates with the employer on behalf of all of the employees. Under something called the Rand Formula, there has been the following determination on the issue of payment of Union Dues (monthly fees payable by employees to the governing body of the Union):

____ A) Employees who did not vote for or join the Union must nevertheless pay Union

Dues.

- or -

____ B) Employees who did not vote for or join the Union do not have to pay Union

Dues.

25) Of all the issues that we have studied in Hospitality Law and Risk Management, which of the following are accurate conclusions?

____ A) Risk is something that all forms of business face.

____ B) It may never be possible to eliminate all risk, but we need to manage risk.

____ C) We cannot manage risk unless and until we learn how to identify matters of

concern that pose a potential for harm to both our employees and customers.

____ D) We can avoid harm and potential liability claims by adopting clear and effective

measures and practices to manage and to limit exposure.