Question 1

Which of the following statements about a partnership is true?

Accepted Answer

A) Partnerships,like sole traders,are not regulated by statute. 
B) Due to ongoing disclosure requirements,secrecy is generally difficult to maintain. 
C) Partners have a heavier tax burden than a sole trader. 
D) Liability of partners for partnership debts is unlimited and personal. 
A) Partnerships,like sole traders,are not regulated by statute. 
B) Due to ongoing disclosure requirements,secrecy is generally difficult to maintain. 
C) Partners have a heavier tax burden than a sole trader. 
D) Liability of partners for partnership debts is unlimited and personal. D

Question 2

Which of the following statements about a sole trader is NOT true?

Accepted Answer

A) All profits made by the business belong to the business and form part of the business' own income. 
B) Because there are no special statutory disclosure requirements,secrecy can be maintained by the sole trader. 
C) There are no special requirements to start operating a business if the sole trader uses their own name. 
D) The sole trader generally has complete control over what the business will and will not do. 
A) All profits made by the business belong to the business and form part of the business' own income. 
B) Because there are no special statutory disclosure requirements,secrecy can be maintained by the sole trader. 
C) There are no special requirements to start operating a business if the sole trader uses their own name. 
D) The sole trader generally has complete control over what the business will and will not do. A

Question 3

Which of the following is NOT a means of protection of a registered business name?

Accepted Answer

A) Passing off. 
B) Breach of the Business Names Registration Act 2011 (Cth). 
C) A breach of trade mark. 
D) Misleading and deceptive conduct under the Competition and Consumer Act 2010 (Cth). 
A) Passing off. 
B) Breach of the Business Names Registration Act 2011 (Cth). 
C) A breach of trade mark. 
D) Misleading and deceptive conduct under the Competition and Consumer Act 2010 (Cth). B

Question 4

Which of the following is an accurate description of a constructive implied trust?

Accepted Answer

A) The trustee has the power to choose the beneficiaries and the amounts to be paid to them. 
B) The parties clearly intended to create a trust,but did not express that intention. 
C) Each beneficiary is identified in the trust deed and has an equal share in the trust. 
D) A person has become the legal owner of property as the result of a breach of fiduciary duty. 
A) The trustee has the power to choose the beneficiaries and the amounts to be paid to them. 
B) The parties clearly intended to create a trust,but did not express that intention. 
C) Each beneficiary is identified in the trust deed and has an equal share in the trust. 
D) A person has become the legal owner of property as the result of a breach of fiduciary duty.

Question 5

Franchises are regulated by the common law of contract.

Accepted Answer

A) True 
 B)False

Question 6

What is the purpose of registering a business name?

Accepted Answer

Most businesses in Australia are require

Question 7

Explain how and why a sole trader might adopt a discretionary trust as their business structure.

Accepted Answer

A sole trader might choose to adopt a di

Question 8

Although a company is a distinct legal entity,it is not separate from its shareholders.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about a franchise is NOT true?

Accepted Answer

A) The franchisee retains the goodwill of the business on expiry of the agreement. 
B) The franchisor provides training and support to the franchisee. 
C) The franchisor has significant control over the franchised business. 
D) A franchisee is self-employed. 
A) The franchisee retains the goodwill of the business on expiry of the agreement. 
B) The franchisor provides training and support to the franchisee. 
C) The franchisor has significant control over the franchised business. 
D) A franchisee is self-employed.

Question 10

Which of the following statements about a trust is true?

Accepted Answer

A) A trust is administered and controlled by a trustee. 
B) The trust is the most complex of business structures. 
C) A trust is a creation of equity. 
D) All of the above. 
A) A trust is administered and controlled by a trustee. 
B) The trust is the most complex of business structures. 
C) A trust is a creation of equity. 
D) All of the above.

Question 11

Which of the following statements about a sole trader is true?

Accepted Answer

A) A sole trader with employees must change to a different business structure. 
B) Every sole trader must register their business name. 
C) There are no special requirements to start operating a business if the sole trader uses their own name. 
D) The sole trader must generally consult with customers,creditors and employees in deciding what the business will and will not do. 
A) A sole trader with employees must change to a different business structure. 
B) Every sole trader must register their business name. 
C) There are no special requirements to start operating a business if the sole trader uses their own name. 
D) The sole trader must generally consult with customers,creditors and employees in deciding what the business will and will not do.

Question 12

Discuss the trust concept.

Accepted Answer

The trust is a concept derived from the

Question 13

Visit your State or Territory's business affairs site and prepare a step-by-step guide to registering a business name.

Accepted Answer

To register a business name in your Stat

Question 14

Which of the following is NOT a requirement for the creation of a trust?

Accepted Answer

A) A trustee. 
B) A beneficiary. 
C) A trust deed. 
D) Trust property. 
A) A trustee. 
B) A beneficiary. 
C) A trust deed. 
D) Trust property.

Question 15

Which of the following statements about business names is NOT true?

Accepted Answer

A) Registration grants monopoly rights but not proprietary rights. 
B) A business name must be registered in every state the business trades in. 
C) Registration provides a registry so that business owners can be identified. 
D) Registration is not necessary if the entity is a registered company trading in the company name. 
A) Registration grants monopoly rights but not proprietary rights. 
B) A business name must be registered in every state the business trades in. 
C) Registration provides a registry so that business owners can be identified. 
D) Registration is not necessary if the entity is a registered company trading in the company name.

Question 16

A corporation is an entity separate from its:

Accepted Answer

A) members and shareholders but not its directors. 
B) members but not its shareholders or directors. 
C) members,shareholders and directors. 
D) shareholders but not its members or directors. 
A) members and shareholders but not its directors. 
B) members but not its shareholders or directors. 
C) members,shareholders and directors. 
D) shareholders but not its members or directors.

Question 17

The shareholders of a company with share capital are its members.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about a unit trust is NOT true?

Accepted Answer

A) There is a fixed entitlement to income. 
B) Unit holders are protected by limited liability. 
C) There is a fixed capital entitlement. 
D) Units are transferrable. 
A) There is a fixed entitlement to income. 
B) Unit holders are protected by limited liability. 
C) There is a fixed capital entitlement. 
D) Units are transferrable.

Question 19

A franchisor is liable for the debts of a franchisee.

Accepted Answer

A) True 
 B)False

Question 20

The Franchising Code of Conduct regulates franchise agreements.

Accepted Answer

A) True 
 B)False

Exam 21: Choosing a Business Entity

Which of the following statements about a partnership is true?

Which of the following statements about a sole trader is NOT true?

Which of the following is NOT a means of protection of a registered business name?

Which of the following is an accurate description of a constructive implied trust?

Franchises are regulated by the common law of contract.

What is the purpose of registering a business name?

Explain how and why a sole trader might adopt a discretionary trust as their business structure.

Although a company is a distinct legal entity,it is not separate from its shareholders.

Which of the following statements about a franchise is NOT true?

Which of the following statements about a trust is true?

Which of the following statements about a sole trader is true?

Discuss the trust concept.

Visit your State or Territory's business affairs site and prepare a step-by-step guide to registering a business name.

Which of the following is NOT a requirement for the creation of a trust?

Which of the following statements about business names is NOT true?

A corporation is an entity separate from its:

The shareholders of a company with share capital are its members.

Which of the following statements about a unit trust is NOT true?

A franchisor is liable for the debts of a franchisee.

The Franchising Code of Conduct regulates franchise agreements.

Legal Foundations

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Partnerships

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Ethics and Business Practice

Criminal Law in a Business Context

Competition Law

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

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