Use the Fact Situation in Q8 to Answer the Related

question 40

Multiple Choice

Use the fact situation in Q8 to answer the related question that follows. Assume that the primary reason for using the name AB's Sales was because A and B knew about the B.C.company and wanted to get some of its business.In this situation,as their lawyer,you would advise A and B that

• A)they can use the name AB's Sales throughout Canada.
• B)they can use the name AB's Sales everywhere in Canada except British Columbia.
• C)they can use the name AB's Sales everywhere in Canada except Ontario.
• D)they should reconsider using the name AB's Sales and change it to protect their business.
• E)they can use the name AB's Sales only in Ontario.

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Definitions:

Dividends

Rephrased: Payments made by a corporation to its shareholders, usually as a distribution of profits.

Net Income

The concluding income of a company after removing the costs and taxes from its revenue.

Average Total Assets

The mean value of all the assets a company owns, calculated by adding the beginning and ending total asset balances during a period and dividing by two.

Earnings Activities

Activities that generate income for a business, including operations, sales, and investments.