Exam 14: Navigating Legal and Ip Issues

Bob and Karin founded a luxury health spa located near natural hot springs.They each owned 30% of the company,with the remaining 40% owned by other shareholders.There were many expenses in the first few years,but by year 4,the company was doing well and had a large base of steady customers.Both Bob and Karin work long hours at the spa and work at marketing and operational tasks.Last week,Bob had an offer from a New York entity to build a luxury spa in Upstate New York and was offered a huge salary.Bob is going to take the offer.Describe the legal protections that could keep Karin from assuming all the work while Bob continues to gain benefit of the company's growth.

Once a product is protected by a patent in the United States,the product will be protected from counterfeit by other countries due to international trade agreements.

What is a shorter,less technical contract which is a clear agreement between founders on a number of key issues that the business might face?

Which of the following is true when compensating employees with company equity?

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.

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

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

What support service for entrepreneurs is offered by the U.S.Patent and Trademark Office?

Choosing the wrong business structure can lead to incurring higher taxes than necessary.

A company with fewer than 50 employees does not have to offer family leave,medical leave,or health insurance.

Before hiring its first employee,a company must get a(n)______ to use on documents and tax returns for the IRS.

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

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

IP protection doesn't always work.What is the primary contributing factor in this failure?

In a general partnership,if one partner is responsible for running the company into the ground,the other partner is not considered liable.

What pitfall might affect the ability to attain a patent?

______ is the simplest and most inexpensive form of legal structure for startups.

If you want to seek immediate external funding from experienced investors,what type of organization would be the best to form?

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

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