Rachi Is a Wealthy Business Person with Substantial Personal Assets

question 34

Multiple Choice

Rachi is a wealthy business person with substantial personal assets.One of the businesses she carries on is a health club.She has carried on this business as a sole proprietorship,but she has decided to incorporate a corporation under the Canada Business Corporations Act to carry it on.She will be the sole shareholder and director.If you were a client of the health club,which of the following would be a legitimate concern based on the change in the legal status of the health club business?

• A)Management personnel will change.
• B)Standards for cleanliness and service quality will decline.
• C)Prices for annual memberships will go up.
• D)The risk that any claim you might have against the business will not be paid will likely increase.
• E)It will be no use to you to complain to Rachi about any problems you have with the operation of the health club.

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Definitions:

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, with its precise definition varying across jurisdictions.

Stewardship

The responsible management and care of resources or property, often with a focus on sustainability and ethical considerations.

Sustainability

The ability to maintain or improve certain processes or states indefinitely, often related to environmental, economic, and social balance.

Stewardship

The responsible management and care of resources or property on behalf of others.