Brian Wants to Start a Business That Provides Canoe and Kayak

question 73

Multiple Choice

Brian wants to start a business that provides canoe and kayak trips. He decides that it would be better to ask his brother Brad to become his partner because

• A) one person could not possibly run this type of business.
• B) Brian will receive all of the profits from the partnership.
• C) together they will be able to get more capital and credit to start the business.
• D) the business will pay less taxes than it would as a sole proprietorship.
• E) there are generally fewer control issues in a partnership than in a sole proprietorship.

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Definitions:

Gift Promises

A declaration by an individual to transfer ownership of an item to another without the exchange of payment.

Legality

The state of being in accordance with the law; legality refers to conformity with statutes and regulations.

Consideration

In contract law, something of value exchanged between parties that is essential for a valid and enforceable contract.

Public Officials

Individuals elected or appointed to carry out governmental duties and responsibilities.