Question 1

Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.

Accepted Answer

The sole proprietorship is simplest and

Question 2

Which of the following is a key disadvantage of hiring an independent contractor?

Accepted Answer

A) A contractor has autonomy in what,when,and how he or she performs the duties of the job. 
B) The contractor would not be required to perform the job to the same level as an employee. 
C) The contractor could be terminated if he or she did not fulfill their contracts. 
D) The contractor generally would have less of a personal commitment to doing the job well. 
A) A contractor has autonomy in what,when,and how he or she performs the duties of the job. 
B) The contractor would not be required to perform the job to the same level as an employee. 
C) The contractor could be terminated if he or she did not fulfill their contracts. 
D) The contractor generally would have less of a personal commitment to doing the job well.

Question 3

How much does IP theft cost the United States every year?

Accepted Answer

A) $3 billion to $5 billion 
B) $100 billion to $200 billion 
C) $225 billion to $600 billion 
D) It is incalculable. 
A) $3 billion to $5 billion 
B) $100 billion to $200 billion 
C) $225 billion to $600 billion 
D) It is incalculable.

Question 4

An employee for a beverage company combines the ingredients used in creating a particular drink mix.Later he/she is fired from the company and decides to sell the same mix under a new label to a competing company.What concept might be represented in this action?

Accepted Answer

A) a copyright violation 
B) a trade secret,provided a nondisclosure that was signed by the employee 
C) a trademark violation,regardless of the lack of a nondisclosure agreement 
D) No violation; secrets are secrets only until they are known. 
A) a copyright violation 
B) a trade secret,provided a nondisclosure that was signed by the employee 
C) a trademark violation,regardless of the lack of a nondisclosure agreement 
D) No violation; secrets are secrets only until they are known.

Question 5

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 6

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 7

How do the authors suggest the Internet's legal resources be used?

Accepted Answer

A) to access low-cost legal forms and advice 
B) to identify the type of legal counsel you will need 
C) to seek advice from free legal services 
D) to find sample documents that match your industry,products,and services 
A) to access low-cost legal forms and advice 
B) to identify the type of legal counsel you will need 
C) to seek advice from free legal services 
D) to find sample documents that match your industry,products,and services

Question 8

A company must have an EIN before hiring employees.

Accepted Answer

A) True 
 B)False

Question 9

Why does the employer fill out an IRS form 940 every year?

Accepted Answer

A) to report income taxes withheld from employee wages 
B) to report federal unemployment tax 
C) to report the number of employees from their company who have filed for unemployment 
D) to report the number of employees who filed a workers' compensation claim 
A) to report income taxes withheld from employee wages 
B) to report federal unemployment tax 
C) to report the number of employees from their company who have filed for unemployment 
D) to report the number of employees who filed a workers' compensation claim

Question 10

In an S corporation,what is the maximum number of shareholders allowed?

Accepted Answer

A) 12 
B) 50 
C) 75 
D) 100 
A) 12 
B) 50 
C) 75 
D) 100

Question 11

Candy-Corp hires a summer intern to work in the candy shop during the summer.The intern works 20 hours a week and earns course credit for a course he is taking toward his culinary degree.He is learning a great deal,and at the same time,the company is benefiting from the intern because they did not need to schedule their regular employees full time and they are not paying the intern.What is the legal liability this company is incurring?

Accepted Answer

A) The summer intern is learning store operations that put him in physical danger. 
B) The intern is performing actual work and not just observing. 
C) The intern is benefiting the company by replacing duties which could be provided by paid employees. 
D) The intern is working too many hours. 
A) The summer intern is learning store operations that put him in physical danger. 
B) The intern is performing actual work and not just observing. 
C) The intern is benefiting the company by replacing duties which could be provided by paid employees. 
D) The intern is working too many hours.

Question 12

An employee has been developing a company product for the last 3 years when he decides to leave the company.That product is a glue that remains tacky for hours,enabling certain types of artwork to be performed.After he leaves the company,the employee joins another company and finalizes the glue development for his new company.Who is likely to own the rights of the intellectual property involved in the formulation of the glue?

Accepted Answer

A) the employee; he invented it 
B) the original company who paid for the product to be developed 
C) the new company because the product was released while the employee worked for it 
D) The glue cannot be considered intellectual property. 
A) the employee; he invented it 
B) the original company who paid for the product to be developed 
C) the new company because the product was released while the employee worked for it 
D) The glue cannot be considered intellectual property.

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

Even if an inventor makes significant improvements to another company's existing product (e.g.,changing the way the product is used and solving a problem with the original product),the improved product is still the intellectual property of the original company.

Accepted Answer

A) True 
 B)False

Question 15

Entrepreneurs may receive legal support from clinics operated at law schools.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following forms will be needed to indicate federal unemployment tax that will be used should the employee lose his or her job?

Accepted Answer

A) Form 940 
B) W-2 
C) I-9 
D) W-4 
A) Form 940 
B) W-2 
C) I-9 
D) W-4

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

The term vesting can best be described as which of the following?

Accepted Answer

A) paying shares out to employees on a regular,usually annual basis 
B) imposing equity forfeitures on cofounders over a certain period of time on a piecemeal basis should they not stay with the company 
C) defining a particular time and range of duties the cofounders must contribute to the business 
D) determining the investment that each cofounder must contribute to the start and growth of the business 
A) paying shares out to employees on a regular,usually annual basis 
B) imposing equity forfeitures on cofounders over a certain period of time on a piecemeal basis should they not stay with the company 
C) defining a particular time and range of duties the cofounders must contribute to the business 
D) determining the investment that each cofounder must contribute to the start and growth of the business

Question 20

Typically,LLPs are only popular among what type of business?

Accepted Answer

A) restaurants 
B) a sole owner who wants to guard against liability 
C) a professional practice,such as a legal or accounting group 
D) franchises 
A) restaurants 
B) a sole owner who wants to guard against liability 
C) a professional practice,such as a legal or accounting group 
D) franchises

Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.

Which of the following is a key disadvantage of hiring an independent contractor?

How much does IP theft cost the United States every year?

An employee for a beverage company combines the ingredients used in creating a particular drink mix.Later he/she is fired from the company and decides to sell the same mix under a new label to a competing company.What concept might be represented in this action?

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

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

How do the authors suggest the Internet's legal resources be used?

A company must have an EIN before hiring employees.

Why does the employer fill out an IRS form 940 every year?

In an S corporation,what is the maximum number of shareholders allowed?

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

Even if an inventor makes significant improvements to another company's existing product (e.g.,changing the way the product is used and solving a problem with the original product),the improved product is still the intellectual property of the original company.

Entrepreneurs may receive legal support from clinics operated at law schools.

Which of the following forms will be needed to indicate federal unemployment tax that will be used should the employee lose his or her job?

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

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

The term vesting can best be described as which of the following?

Typically,LLPs are only popular among what type of business?

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters

Exam 14: Navigating Legal and Ip Issues

Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.

Which of the following is a key disadvantage of hiring an independent contractor?

How much does IP theft cost the United States every year?

An employee for a beverage company combines the ingredients used in creating a particular drink mix.Later he/she is fired from the company and decides to sell the same mix under a new label to a competing company.What concept might be represented in this action?

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

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

How do the authors suggest the Internet's legal resources be used?

A company must have an EIN before hiring employees.

Why does the employer fill out an IRS form 940 every year?

In an S corporation,what is the maximum number of shareholders allowed?

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

Even if an inventor makes significant improvements to another company's existing product (e.g.,changing the way the product is used and solving a problem with the original product),the improved product is still the intellectual property of the original company.

Entrepreneurs may receive legal support from clinics operated at law schools.

Which of the following forms will be needed to indicate federal unemployment tax that will be used should the employee lose his or her job?

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

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

The term vesting can best be described as which of the following?

Typically,LLPs are only popular among what type of business?

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Financing for Startups

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters