Exam 42: Law for Small Businesses

To protect trade secrets, a company can require its employees to agree not to divulge those secrets.

In a private offering, capital is raised through a private placement memorandum distributed to select potential investors.

Lee wants to begin importing athletic shoes under the corporate name Mercury, Inc. Mercury should include most of its corporate rules in

Typically, in exchange for a loan, a bank will demand operational control over a company.

A limited liability company's limited liability may be lost by contract.

Select Sales Company's offer of shares of stock in itself to anyone who is willing to pay $60 per share is

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

Philo wants to start a new business enterprise. Because it is difficult, if not impossible, to keep up with the many legal rules that govern business conduct, Philo most likely needs to consult

A right of first refusal permits a shareholder to refuse to sell his or her shares to the corporation that issued them.

Mick starts a business to market nationally long-distance phone time as Mick's Minutes. Registering his trademark with the U.S. Patent and Trademark Office provides nationwide protection for the mark

Nick designs a new office-management software program and incorpo?rates Nick's Niche, Inc., to make and market it. To sell a limited number of shares of stock to the public, the firm must register the shares with

All corporate business forms offer limited liability to their owners.

Demi operates Eyes Wide Open, a small-business optician enterprise. To raise capital, Demi contacts Foster, a venture capitalist. Besides capital, Foster will most likely

A trademark should be registered with both the federal and state governments.

Sally's Salon & Day Spa hires only independent contractors such as Tina as workers. This hiring practice allows the employer to avoid

In a public offering, a certain number of shares are offered at a set price to members of the public.

When Chez Cheese Company is incorporated in Delaware, the state agency with which the business name is filed approves Chez Cheese's name as a trade name. This approval is le?gal permission to own the name

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

Rudy operates Silver Buckles, a small-business equine enterprise. To raise capital, Rudy contacts Thad, a venture capitalist. Besides capital, Thad will most likely

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