Question 1

Income tax is triggered any time an individual receives any form of property in exchange for performing services.

Accepted Answer

A) True 
 B)False

Question 2

Protecting intellectual property is of growing concern to today's modern entrepreneur.Briefly describe why this is so.

Accepted Answer

The answer should acknowledge some of th

Question 3

Regardless of the type of entity,a business partner can always maintain his or her own shares in the company,even when they leave the company,provided they were one of the company's founders.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following cannot be protected as intellectual property?

Accepted Answer

A) artistic expression 
B) a trademark 
C) an idea 
D) an invention 
A) artistic expression 
B) a trademark 
C) an idea 
D) an invention

Question 5

A disadvantage of a C corporation is that it cannot survive after the demise of its owners.

Accepted Answer

A) True 
 B)False

Question 6

A sole proprietorship is rarely the correct choice of legal structure for startups.

Accepted Answer

A) True 
 B)False

Question 7

What two characteristics should a lawyer have when working with a startup?

Accepted Answer

A) years of experience and willingness to work at reduced charges 
B) knowledge of laws across states and knowledge of the industry 
C) industry knowledge and a familiarity and comfort working with startups 
D) knowledge about all aspects of the business and laws across states 
A) years of experience and willingness to work at reduced charges 
B) knowledge of laws across states and knowledge of the industry 
C) industry knowledge and a familiarity and comfort working with startups 
D) knowledge about all aspects of the business and laws across states

Question 8

With which of the following agencies must you register to pay state unemployment compensation tax?

Accepted Answer

A) the Federal Department of Labor 
B) the Labor Department of your state 
C) the Franchise Tax Board 
D) the State Tax Board 
A) the Federal Department of Labor 
B) the Labor Department of your state 
C) the Franchise Tax Board 
D) the State Tax Board

Question 9

If you issue shares in your company to your employees,you are risking noncompliance with securities law.

Accepted Answer

A) True 
 B)False

Question 10

In a sole proprietorship,the owner is held personally liable for any problems the business incurs.

Accepted Answer

A) True 
 B)False

Question 11

Failure to assign ownership occurs in which of the following situations?

Accepted Answer

A) when someone makes significant contributions to a product design without a formal agreement regarding who owns the idea 
B) only when someone makes a significant contribution and is not paid for the contribution 
C) only when someone makes a significant contribution and is paid for the contribution 
D) when someone fails to place the company name on the patent 
A) when someone makes significant contributions to a product design without a formal agreement regarding who owns the idea 
B) only when someone makes a significant contribution and is not paid for the contribution 
C) only when someone makes a significant contribution and is paid for the contribution 
D) when someone fails to place the company name on the patent

Question 12

Generally,federal law forbids discrimination in the workplace,but there are exceptions.Describe those exceptions.

Accepted Answer

At the federal level,it is illegal to di

Question 13

What is the simplest and most inexpensive form of legal structure for startups?

Accepted Answer

A) sole proprietorship 
B) general partnership 
C) C corporation 
D) S corporation 
A) sole proprietorship 
B) general partnership 
C) C corporation 
D) S corporation

Question 14

Which of the following conditions is applicable to all not-for-profit organizations?

Accepted Answer

A) They must be classified as a church,educational,or charitable institution. 
B) Their earnings should be used to benefit the shareholders. 
C) Profit must be reinvested and used for the organization's exempt purpose. 
D) Shareholder earnings are limited by the tax code. 
A) They must be classified as a church,educational,or charitable institution. 
B) Their earnings should be used to benefit the shareholders. 
C) Profit must be reinvested and used for the organization's exempt purpose. 
D) Shareholder earnings are limited by the tax code.

Question 15

A limited liability partnership protects the owners from liability,and taxes are paid by the corporation.

Accepted Answer

A) True 
 B)False

Question 16

After filing for a provisional patent,how long do you have before developing the idea into a working prototype?

Accepted Answer

A) 1 year 
B) 2 years 
C) 3 years 
D) 4 years 
A) 1 year 
B) 2 years 
C) 3 years 
D) 4 years

Question 17

Who would be worthwhile to consult before setting up an employee benefits program for your startup?

Accepted Answer

A) your HR Director 
B) an accountant experienced with employee benefits 
C) the company lawyer 
D) the provider,such as the insurance company or retirement fund company 
A) your HR Director 
B) an accountant experienced with employee benefits 
C) the company lawyer 
D) the provider,such as the insurance company or retirement fund company

Question 18

Which of the following can be affected by the type of legal structure your company has?

Accepted Answer

A) the authorities you need to notify,taxes,record-keeping,and decision processes 
B) taxes and ability to sue the company 
C) taxes and marketability of your company 
D) taxes only 
A) the authorities you need to notify,taxes,record-keeping,and decision processes 
B) taxes and ability to sue the company 
C) taxes and marketability of your company 
D) taxes only

Question 19

A C corporation has transferable ownership,which refers to the fact that ______.

Accepted Answer

A) a C corporation can change its structure at any time after the first year 
B) it can issue stock in exchange for capital and can be passed on to new owners 
C) it can adapt to more employees as the company grows 
D) it can be owned by an unlimited number of shareholders 
A) a C corporation can change its structure at any time after the first year 
B) it can issue stock in exchange for capital and can be passed on to new owners 
C) it can adapt to more employees as the company grows 
D) it can be owned by an unlimited number of shareholders

Question 20

Gary is fascinated by a new device that uses a GPS-like tracker to help owners locate their pets.He purchases the product,disassembles it,and uses it as a pattern for a similar device.The new device uses a less expensive casing,but otherwise has duplicated the technology.What legal concept may be represented in this action?

Accepted Answer

A) a copyright violation 
B) a trademark violation 
C) a patent violation 
D) a fair use violation 
A) a copyright violation 
B) a trademark violation 
C) a patent violation 
D) a fair use violation

Income tax is triggered any time an individual receives any form of property in exchange for performing services.

Protecting intellectual property is of growing concern to today's modern entrepreneur.Briefly describe why this is so.

Regardless of the type of entity,a business partner can always maintain his or her own shares in the company,even when they leave the company,provided they were one of the company's founders.

Which of the following cannot be protected as intellectual property?

A disadvantage of a C corporation is that it cannot survive after the demise of its owners.

A sole proprietorship is rarely the correct choice of legal structure for startups.

What two characteristics should a lawyer have when working with a startup?

With which of the following agencies must you register to pay state unemployment compensation tax?

If you issue shares in your company to your employees,you are risking noncompliance with securities law.

In a sole proprietorship,the owner is held personally liable for any problems the business incurs.

Failure to assign ownership occurs in which of the following situations?

Generally,federal law forbids discrimination in the workplace,but there are exceptions.Describe those exceptions.

What is the simplest and most inexpensive form of legal structure for startups?

Which of the following conditions is applicable to all not-for-profit organizations?

A limited liability partnership protects the owners from liability,and taxes are paid by the corporation.

After filing for a provisional patent,how long do you have before developing the idea into a working prototype?

Who would be worthwhile to consult before setting up an employee benefits program for your startup?

Which of the following can be affected by the type of legal structure your company has?

A C corporation has transferable ownership,which refers to the fact that ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

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Exam 14: Navigating Legal and Ip Issues

Income tax is triggered any time an individual receives any form of property in exchange for performing services.

Protecting intellectual property is of growing concern to today's modern entrepreneur.Briefly describe why this is so.

Regardless of the type of entity,a business partner can always maintain his or her own shares in the company,even when they leave the company,provided they were one of the company's founders.

Which of the following cannot be protected as intellectual property?

A disadvantage of a C corporation is that it cannot survive after the demise of its owners.

A sole proprietorship is rarely the correct choice of legal structure for startups.

What two characteristics should a lawyer have when working with a startup?

With which of the following agencies must you register to pay state unemployment compensation tax?

If you issue shares in your company to your employees,you are risking noncompliance with securities law.

In a sole proprietorship,the owner is held personally liable for any problems the business incurs.

Failure to assign ownership occurs in which of the following situations?

Generally,federal law forbids discrimination in the workplace,but there are exceptions.Describe those exceptions.

What is the simplest and most inexpensive form of legal structure for startups?

Which of the following conditions is applicable to all not-for-profit organizations?

A limited liability partnership protects the owners from liability,and taxes are paid by the corporation.

After filing for a provisional patent,how long do you have before developing the idea into a working prototype?

Who would be worthwhile to consult before setting up an employee benefits program for your startup?

Which of the following can be affected by the type of legal structure your company has?

A C corporation has transferable ownership,which refers to the fact that ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters