12 Questions
What was Aron Salomon's occupation before incorporating his business?
Shoe manufacturer
Why did Aron Salomon lend money to his business?
To raise money for the business
What was the court's decision in the Salomon v. Salomon case?
The corporation was a separate legal entity from its shareholders.
What is the main purpose of a not-for-profit corporation?
To further a charitable or educational goal
What is required for lawyers and licensed paralegals to practise together as a professional corporation?
A certificate of authorization
What is the main difference between a private corporation and a public corporation?
Private corporations are owned by a few shareholders, while public corporations are owned by many shareholders.
What is the main disadvantage of a partnership?
Unlimited liability
What is the key feature that distinguishes a corporation from a partnership?
Separate legal entity
What is the result if one partner becomes ill or dies in a partnership?
The partnership dissolves
What is the historical origin of the concept of a corporation as a separate legal entity?
Salomon v. Salomon & Co. case
What do shareholders of a corporation receive?
A share of the corporation's profits through the payment of a dividend
What is the advantage of a corporation over a partnership in terms of liability?
No personal liability for owners
Learn about the drawbacks of partnerships, including unlimited liability, tax implications, potential disputes, and more. Understand the importance of a partnership agreement to mitigate these risks.
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