Question 1

A limited liability organization's limited liability may be lost by failure to comply with the rules for a business form.

Accepted Answer

A) True 
 B)False

Question 2

The states and the Securities and Exchange Commission jointly created a simplified securities registration process for large businesses.

Accepted Answer

A) True 
 B)False

Question 3

Generally,your trademark must be the same as another's mark or so similar that confusion results.

Accepted Answer

A) True 
 B)False

Question 4

Companies may require employees who have access to trade secrets to agree in their employment contracts never to divulge those secrets.

Accepted Answer

A) True 
 B)False  True

Question 5

One way to raise capital to expand a business is to borrow the funds.

Accepted Answer

A) True 
 B)False

Question 6

Bild-It-Rite Corporation uses independent contractors.Bild-It-Rite can

Accepted Answer

A)  be sued by a contractor for a violation of discrimination laws.
B)  exercise little control over how the contractors perform.
C)  obtain workers' compensation insurance for the contractors.
D)  withhold income taxes from payments to the contractors.E) A) and B)
F) B) and C)

Question 7

A business entity's limited personal liability obviates the need to obtain insurance for significant business liability risks.

Accepted Answer

A) True 
 B)False

Question 8

A limited liability company's members must be its managers.

Accepted Answer

A) True 
 B)False

Question 9

Global Tours,a travel agency,is a limited liability company.Global is ex?empt from legal requirements that relate to

Accepted Answer

A)  business name registration.
B)  occupational licensing.
C)  state tax registration.
D)  none of the choices.E) A) and B)
F) A) and C)

Question 10

Quia and Rafi form SA,LLC,a limited liability company,to operate Superior Athletics,a fitness center.Compared to a sole pro?prietorship and a general partnership,a limited liability company has limited

Accepted Answer

A)  business purposes.
B)  investment opportunities.
C)  personal liability.
D)  requirements.E) All of the above
F) B) and C)

Question 11

Elan Elite Service Company's offer of shares of stock in itself to anyone who is willing to pay $600 per share is

Accepted Answer

A)  a shareholder agreement.
B)  key-person insurance.
C)  a private offering.
D)  a public offering.E) A) and B)
F) A) and C) D

Question 12

Nero opened Oh! Fudge!,a candy store,as a corporation.When doing busi?ness on behalf of the store,to avoid personal liability,Nero should sign contracts

Accepted Answer

A)  as an agent for the corporation.
B)  in his individual capacity.
C)  as a gourmand.
D)  under a false name.E) B) and C)
F) A) and D)

Question 13

The five shareholders of Orthopedic Ease,Inc.,a medical equipment firm,want to prevent each other from sell?ing the shares to third parties without first being given the opportu?nity to buy them.This can be provided for in

Accepted Answer

A)  a shareholder agreement.
B)  key-person insurance.
C)  a private offering.
D)  a public offering.E) All of the above
F) B) and D)

Question 14

Electro,Inc.,makes and sells electric bikes,as well as parts and service,to customers in the United States and other countries.Can Electro pre?vent its employees from revealing its customer lists,pricing policies,and other confidential information,if the em?ployees resign to work for a com?petitor or to enter the same business themselves? How?

Accepted Answer

Customer lists,pricing policies,and othe...

Question 15

A business plan describes a company,its products,and its anticipated future performance.

Accepted Answer

A) True 
 B)False  True

Question 16

Mabel and Nahim want to start up and incorporate a new business enterprise.The first step in the incorporation process is to

Accepted Answer

A)  choose and file a corporate name with a state office.
B)  draft the bylaws to govern the corporation.
C)  hold an initial board of directors' meeting.
D)  prepare and file articles of incorporation with a state office.E) A) and C)
F) A) and B)

Question 17

Quisha operates River Valley Soccer,an athletic equipment shop,as a sole proprietorship.Taxes on the business's income are paid by

Accepted Answer

A)  no one.
B)  Quisha.
C)  the state or federal government.
D)  the business.E) A) and C)
F) C) and D)

Question 18

Dallas and Ellyn operate Freestyle Riders,a bicycle shop,as a part?nership.Taxes on the business's income are paid by

Accepted Answer

A)  Dallas and Ellyn.
B)  no one.
C)  the state or federal government.
D)  the business.E) B) and D)
F) A) and B)

Question 19

National Standard Company (NSC) products are identified with a trade?mark.For several years,NSC al?lows others to use the mark without permission and without protest.This may be deemed,on NSC's part,

Accepted Answer

A)  abandonment of the mark.
B)  anticompetitive conduct.
C)  liability for misleading consumers.
D)  liability for misleading competitors.E) A) and D)
F) A) and C)

Question 20

Josh and Kya form Longview Associates,a limited part?nership,to invest in real estate.Compared to a sole proprietorship and a general partnership,a limited partnership has limited

Accepted Answer

A)  business purposes.
B)  investment opportunities.
C)  personal liability.
D)  requirements.E) A) and D)
F) A) and C)

Exam 43: Law for Small Business

A limited liability organization's limited liability may be lost by failure to comply with the rules for a business form.

Correct Answer
verified

The states and the Securities and Exchange Commission jointly created a simplified securities registration process for large businesses.

Correct Answer
verified

Generally,your trademark must be the same as another's mark or so similar that confusion results.

Correct Answer
verified

Companies may require employees who have access to trade secrets to agree in their employment contracts never to divulge those secrets.

Correct Answer
verified
True

One way to raise capital to expand a business is to borrow the funds.

Correct Answer
verified

Bild-It-Rite Corporation uses independent contractors.Bild-It-Rite can

Correct Answer
verified

A business entity's limited personal liability obviates the need to obtain insurance for significant business liability risks.

Correct Answer
verified

A limited liability company's members must be its managers.

Correct Answer
verified

Global Tours,a travel agency,is a limited liability company.Global is ex?empt from legal requirements that relate to

Correct Answer
verified

Quia and Rafi form SA,LLC,a limited liability company,to operate Superior Athletics,a fitness center.Compared to a sole pro?prietorship and a general partnership,a limited liability company has limited

Correct Answer
verified

Elan Elite Service Company's offer of shares of stock in itself to anyone who is willing to pay $600 per share is

Correct Answer
verified
D

Nero opened Oh! Fudge!,a candy store,as a corporation.When doing busi?ness on behalf of the store,to avoid personal liability,Nero should sign contracts

Correct Answer
verified

The five shareholders of Orthopedic Ease,Inc.,a medical equipment firm,want to prevent each other from sell?ing the shares to third parties without first being given the opportu?nity to buy them.This can be provided for in

Correct Answer
verified

Correct Answer
verified
Customer lists,pricing policies,and othe...
View Answer

A business plan describes a company,its products,and its anticipated future performance.

Correct Answer
verified
True

Mabel and Nahim want to start up and incorporate a new business enterprise.The first step in the incorporation process is to

Correct Answer
verified

Quisha operates River Valley Soccer,an athletic equipment shop,as a sole proprietorship.Taxes on the business's income are paid by

Correct Answer
verified

Dallas and Ellyn operate Freestyle Riders,a bicycle shop,as a part?nership.Taxes on the business's income are paid by

Correct Answer
verified

National Standard Company (NSC) products are identified with a trade?mark.For several years,NSC al?lows others to use the mark without permission and without protest.This may be deemed,on NSC's part,

Correct Answer
verified

Josh and Kya form Longview Associates,a limited part?nership,to invest in real estate.Compared to a sole proprietorship and a general partnership,a limited partnership has limited

Correct Answer
verified

Exam 43: Law for Small Business

A limited liability organization's limited liability may be lost by failure to comply with the rules for a business form.

Correct AnswerverifiedShow Answer

The states and the Securities and Exchange Commission jointly created a simplified securities registration process for large businesses.

Correct AnswerverifiedShow Answer

Generally,your trademark must be the same as another's mark or so similar that confusion results.

Correct AnswerverifiedShow Answer

Companies may require employees who have access to trade secrets to agree in their employment contracts never to divulge those secrets.

Correct AnswerverifiedTrue

One way to raise capital to expand a business is to borrow the funds.

Correct AnswerverifiedShow Answer

Bild-It-Rite Corporation uses independent contractors.Bild-It-Rite can

Correct AnswerverifiedShow Answer

A business entity's limited personal liability obviates the need to obtain insurance for significant business liability risks.

Correct AnswerverifiedShow Answer

A limited liability company's members must be its managers.

Correct AnswerverifiedShow Answer

Global Tours,a travel agency,is a limited liability company.Global is ex?empt from legal requirements that relate to

Correct AnswerverifiedShow Answer

Quia and Rafi form SA,LLC,a limited liability company,to operate Superior Athletics,a fitness center.Compared to a sole pro?prietorship and a general partnership,a limited liability company has limited

Correct AnswerverifiedShow Answer

Elan Elite Service Company's offer of shares of stock in itself to anyone who is willing to pay $600 per share is

Correct AnswerverifiedD

Nero opened Oh! Fudge!,a candy store,as a corporation.When doing busi?ness on behalf of the store,to avoid personal liability,Nero should sign contracts

Correct AnswerverifiedShow Answer

The five shareholders of Orthopedic Ease,Inc.,a medical equipment firm,want to prevent each other from sell?ing the shares to third parties without first being given the opportu?nity to buy them.This can be provided for in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCustomer lists,pricing policies,and othe...View AnswerShow Answer

A business plan describes a company,its products,and its anticipated future performance.

Correct AnswerverifiedTrue

Mabel and Nahim want to start up and incorporate a new business enterprise.The first step in the incorporation process is to

Correct AnswerverifiedShow Answer

Quisha operates River Valley Soccer,an athletic equipment shop,as a sole proprietorship.Taxes on the business's income are paid by

Correct AnswerverifiedShow Answer

Dallas and Ellyn operate Freestyle Riders,a bicycle shop,as a part?nership.Taxes on the business's income are paid by

Correct AnswerverifiedShow Answer

National Standard Company (NSC) products are identified with a trade?mark.For several years,NSC al?lows others to use the mark without permission and without protest.This may be deemed,on NSC's part,

Correct AnswerverifiedShow Answer

Josh and Kya form Longview Associates,a limited part?nership,to invest in real estate.Compared to a sole proprietorship and a general partnership,a limited partnership has limited

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
verified
Customer lists,pricing policies,and othe...
View Answer

Correct Answer
verified
True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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