Lisa started a small catering business in her home. She worked on her own. This business is
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Lisa started a small catering business in her home. She worked on her own. This business is a sole proprietorship.
- If Lisa wanted to call her business “Lisa’s Lunches”, she would have to register under the Business Names Act in Ontario (or similar legislation in other provinces).
- If Lisa’s Lunches borrowed $15,000 from the bank to pay someone to develop a website for her, and could not repay the loan out of business revenue, how much would Lisa be personally liable for?
- Lisa’s sisters, Janice and Elana, decided to join her in the business. They did not have a formal arrangement, but each sister contributed some money so they could rent a commercial kitchen and expand the business. Lisa contributed $15,000, Janice contributed $10,000 and Elana contributed $5,000. What kind of business is this?
- The sisters catered a party where the guests got food poisoning from contaminated meat. The client sued the business for $30,000. How much could Lisa be required to pay?
- How much could Lisa recover from Elana?
- Doreen, the sisters’ mother, wanted to help her daughters succeed so she invested $20,000 in their business. She wanted to participate in the profits but did not want to be involved in running the business. What kind of business structure is this?
- If a customer sued the business for $30,000, how much would Doreen have to pay?
- Lisa hired a law firm, Kerbel Caplan LLP, to defend the lawsuit referred to in question 8, but Kerbel, her lawyer, missed a deadline and the business lost the lawsuit. If Lisa sued Kerbel Caplan LLP for $ 40,000 for professional negligence, how much would Caplan, the other partner, be responsible for?
- Lisa decided to incorporate Lisa’s Lunches Limited. The three shareholders are Lisa, Janice and Elana; each contributed $10,000 in exchange for 1000 shares of the company. If Lisa’s Lunches Limited could not repay its bank loan of $50,000, how much would Lisa be personally responsible for?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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