FINAL EXAMINATION PRACTICE QUESTIONS

GBM BUS 5505

1/ Constructive dismissal (under common law) can occur when:

a. An employer changes the duties outlined in the employment contract.

b. An employer has just cause to dismiss an employee.

c. An employer dismisses an employee for no reason.

d. All of these

2/ Which of the following may not be grounds for dismissal?

a. Being late for work

b. Disobeying a supervisor

c. Using alcohol at work

d. Using drugs at work

3/ An employee whose hours of work are unilaterally reduced from 40 hours to 28 hours
per week may have a claim against the employer based on:

a. Constructive dismissal

b. Failure to mitigate

c. Unjust dismissal

d. Wrongful dismissal

4/ A restrictive covenant that prevents a departing employee from revealing a former

employer's customers trade secret is known as a:

a. Non-contact clause

b. Non-competition clause

c. Non-disclosure clause

d. Non-solicitation clause
5/ To prevent ex-employees from initiating contact with their former employer’s
customers, which type of restrictive covenants should be included in employment
contracts?

a. Non-competition clauses

b. Non-disclosure clauses

c. Non-contact clauses

d. Non-solicitation clauses

6/ In relation to hours of work what is being described here? I am entitled to this, because
I have worked 48 hours for each week in the last four weeks.

a. Vacation pay

b. Sick pay

c. Over time payment

d. Statutory (public) holiday

The scenario below relates to questions 7-10

Margo, Sanjita, Brian and Juliette have just completed their post graduate
certificate in Event Management. They got on famously when they studied
together and are thinking about starting their own business enterprise together.
Margo excelled in digital marketing, Sanjita more of a finance wizard, while Brian
and Juliette are more creative types. With the exception of Sanjita who just won
the Lotto Max (60 million), they all have some student debt to pay off and Brian is
married with a family.

They began their business 6 months ago now, creating and executing highly
sophisticated virtual events to clients. They are doing really well, with everything
surpassing their expectations, they work well with each other, trust each other
implicitly and run off their feet with the demand for their expertise. Everything is
discussed and nothing is signed off unless they all agree.
They have a joint bank account where profits are deposited weekly. Profits and
losses are shared every quarter equally between them. Their reputation for
quality, professionalism and execution is growing rapidly. They are now thinking
seriously about bringing in another person to cope with the demand.
The following information is pertinent: Sanjita contributed 50% of the start-up
capital, Brian and Juliette 25% each. Margo felt her skills were the most
essential to the business and therefore did not contribute to the start-up. She
has indeed been a huge asset to the business, they really could not manage
without her. She has suggested a person to bring in to join the business,
however, Brian is objecting to this.

7/ Which type of organization would be least favourable for Sanjita?

(a) Sole proprietor

(b) Corporation
(c) General Partnership
(d) Limited Liability Partnership

8/ Which type of business organization are the parties running?

(a) Limited Liability Partnership

(b) General Partnership

(c) Limited Partnership

(d) Corporation

9/ Do they need to have an agreement between them?

(a) Yes, although not mandatory they should circumvent the clauses of the
Partnership Act, which would not be conducive to their needs.

(b) No, the Partnership Act would be perfectly suitable to their needs.

(c) The option of a Partnership agreements is not available to the partners

under the circumstances.

(d) They will likely find spending time to draft an agreement time-
consuming and expensive.
10/ Based on the information in the scenario, which of the following clauses should
the partners include, should they opt to draft an agreement?
(a) Profits and Losses

(b) New Partner

(c) Management and Decision Making

(d) Remuneration

(e) All of the above

 11/ In which of the following multiple ownership in land does automatic right of
survivorship apply?
a. Tenancy in Common
b. Joint Tenancy
c. Tenancy
d. Life Interest Estate

12/ All of the following are remedies belonging exclusively to the landlord, except:
a. Action on the covenant

b. Distress

c. Distrain

d. Quiet possession

The scenario below relates to questions 13 - 16

Bruce Springwater and Alley Underwater, are not only business partners (small
partnership, as event managers), but are also engaged to be married, as well as
negotiating a property purchase with the sellers of 24 Acacia Avenue as a residential
property to live in. They would like your advice on the best title to buy as a legal interest
and also how they should hold the equitable interest in the property that they purchase.
They plan to have children in the future; they both come from large extended families.

13/ Which would be the best title for Bruce and Alley to purchase?

(a) A fee simple title

(b) A leasehold title

(c) A life estate

(d) None of the above

14/ which of the titles in Question 13 would allow the parties to go and live overseas or
elsewhere in Canada and they would still own the reversion interest in the 24 Acacia
Avenue?

(a) A fee simple title

(b) A leasehold title

(c) A life estate

(d) None of the above

15/ In relation to Q13 what would they need to create to allow them to do this

(a) A fee simple title

(b) A leasehold title

(c) A life estate

(d) None of the above

16/ How should Bruce and Alley hold the equitable interest in the property they purchase?

(a) As Joint Tenants

(b) As Tenants in Common

(c) As life tenants

(d) None of the above

17/ The word "firm" is most appropriately used to describe which business structure?
a. A limited partnership only
b. A partnership of lawyers or accountants only
c. Any partnership
d. A privately held corporation.

18/ Limited partners are best described as

a. partners that make only a limited financial contribution.
b. partners in a general partnership.
c. partners that receive a smaller portion of the partnership's profits.
d. investors in a partnership.
19/ Which of the following activities can a corporation carry out?
A Creating other corporations
B Buying or selling other business entities
C Entering into contracts
d.All of the above

20/ Which of the following are responsible for the day-to-day operation of a corporation?
a. Shareholders
b. Directors
c. Officers
d. Incorporators