[Car Repair] Gordon and Leo Are Partners in SafeT Car

question 22

Multiple Choice

[Car Repair] Gordon and Leo are partners in SafeT Car, a full service automotive repair company. Leo does nearly all of the day-to-day work as Gordon is thinking about retiring. When Leo was moving a customer's car last week, he accidentally collided with the garage door, and the door had to be replaced at a cost of $6,000. Leo recently met with BigBox stores about a potential deal by which BigBox would set up a SafeT Car shop in every BigBox store nationwide. Leo signed an agreement to open a "test" store in one BigBox store. Leo hasn't told Gordon yet, because Gordon hasn't been in the office in a month. Gordon opens The Oil Place, an express oil change company, which he plans to have his sons operate in his retirement. When Leo learns about The Oil Place, he threatens to sue Gordon for breach of duty because Leo is sick of doing all the work at SafeT Car while Gordon was apparently opening a competing business. Gordon tells Leo that he hasn't breached any duty and they don't have a written agreement that restricts Gordon from opening his own store with his sons. Gordon also tells Leo that the $6,000 for the damaged door is coming out of Leo's pocket. Leo, who's thinking about the potential deal about BigBox, tells Gordon he wants to split up the partnership.
-When a person decides to go into business on his or her own without further formality, what do they form?

• A) Individual entity
• B) Sole proprietorship
• C) Single entity
• D) Sole entrepreneurship
• E) Single entrepreneurship

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Definitions:

Gastrologist

Incorrect term for a medical specialist; the correct term is Gastroenterologist, who specializes in diagnosing and treating digestive system disorders.

Cardiomyopathy

Cardiomyopathy is a group of diseases affecting the heart muscle, leading to impaired function and heart failure.

Nephrology

A branch of medicine focusing on the diagnosis and treatment of kidney diseases.

Osteoarthritis

A degenerative joint disease characterized by the breakdown of cartilage and underlying bone, resulting in pain and stiffness, primarily affecting the elderly.