Question 1

Martha got billed by her lawyer for 40 minutes of consultation.Which of the following ways did the lawyer charge Martha?

Accepted Answer

A)  Hourly fee 
B)  Flat fee 
C)  Contingency fee 
D)  Retainer 
A)  Hourly fee 
B)  Flat fee 
C)  Contingency fee 
D)  Retainer

Question 2

_______ are the only form of legal corporation that can seek 501(c)(3)from the IRS which permits donations to the organization and considered as tax deductible to the donor.

Accepted Answer

A)  C corporations 
B)  Corporations 
C)  An S corporation 
D)  Nonprofit corporations 
A)  C corporations 
B)  Corporations 
C)  An S corporation 
D)  Nonprofit corporations

Question 3

Brendon wants to sue Fitness Ace,a leading provider of fitness equipments,for negligence.He approaches Arthur Bailey Group,a law firm,which has good experience in handling product liability claims for victims of exercise equipment failure.Which of the following would be true if the attorney charges Brendon in the form of contingency fees?

Accepted Answer

A)  The attorney would charge Brendon on an hourly basis. 
B)  The attorney would charge separately for consultation and paperwork. 
C)  The attorney would take a percentage of Brendon's recovery as his or her fee. 
D)  The attorney would take monthly fee and additional fees if circumstances change. 
A)  The attorney would charge Brendon on an hourly basis. 
B)  The attorney would charge separately for consultation and paperwork. 
C)  The attorney would take a percentage of Brendon's recovery as his or her fee. 
D)  The attorney would take monthly fee and additional fees if circumstances change.

Question 4

_____ refers to the filing made with a state(s)in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business.

Accepted Answer

A)  Fictitious name filing 
B)  Evidential name filing 
C)  Incorporation 
D)  Adverse possession 
A)  Fictitious name filing 
B)  Evidential name filing 
C)  Incorporation 
D)  Adverse possession

Question 5

A person or other entity filing a lawsuit is known as _____.

Accepted Answer

A)  plaintiff 
B)  defendant 
C)  sole proprietor 
D)  retainer 
A)  plaintiff 
B)  defendant 
C)  sole proprietor 
D)  retainer

Question 6

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a:

Accepted Answer

A)  trade secret. 
B)  copyright. 
C)  trademark. 
D)  patent. 
A)  trade secret. 
B)  copyright. 
C)  trademark. 
D)  patent.

Question 7

Discuss the advantages and disadvantages of corporations as a business form.

Accepted Answer

The advantages of corporations are that

Question 8

Brendon wants to sue Fitness Ace,a leading provider of fitness equipments,for negligence.He approaches Arthur Bailey Group,a law firm,which has good experience in handling product liability claims for victims of exercise equipment failure.Which of the following would be true if the attorney charges Brendon using a retainer?

Accepted Answer

A)  The attorney would charge Brendon on an hourly basis. 
B)  The attorney would charge separately for consultation and paperwork. 
C)  The attorney would take a percentage of Brendon's recovery as his or her fee. 
D)  The attorney would take monthly fee and additional fees if circumstances change. 
A)  The attorney would charge Brendon on an hourly basis. 
B)  The attorney would charge separately for consultation and paperwork. 
C)  The attorney would take a percentage of Brendon's recovery as his or her fee. 
D)  The attorney would take monthly fee and additional fees if circumstances change.

Question 9

Which among the following is a disadvantage of sole proprietorships?

Accepted Answer

A)  Its owner gets no specific tax advantages. 
B)  Its owner has to share control with others. 
C)  Its owner has to share profits. 
D)  Its owner has unlimited liability for the firm's debt. 
A)  Its owner gets no specific tax advantages. 
B)  Its owner has to share control with others. 
C)  Its owner has to share profits. 
D)  Its owner has unlimited liability for the firm's debt.

Question 10

Which among the following steps in a negotiation process is considered to be the most difficult?

Accepted Answer

A)  Prepare 
B)  Position 
C)  Propose 
D)  Pounce 
A)  Prepare 
B)  Position 
C)  Propose 
D)  Pounce

Question 11

Contingency fees are a fixed amount paid for a certain task.

Accepted Answer

A) True 
 B)False

Question 12

Considering all the ways a firm can face legal threats,which of the following is not one of the ways to think about your business and avoid being sued?

Accepted Answer

A)  Check with a lawyer early on. 
B)  Plan to do good. 
C)  React to make a profit. 
D)  Manage risks. 
A)  Check with a lawyer early on. 
B)  Plan to do good. 
C)  React to make a profit. 
D)  Manage risks.

Question 13

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time?

Accepted Answer

A)  Noncompete clause 
B)  Exculpatory clause 
C)  Hold harmless clause 
D)  Interstate clause 
A)  Noncompete clause 
B)  Exculpatory clause 
C)  Hold harmless clause 
D)  Interstate clause

Question 14

When using a(n)_____,the attorney will be paid a specified amount every month regardless of the workload for that month.

Accepted Answer

A)  hourly fee 
B)  flat fee 
C)  retainer 
D)  contingency fee 
A)  hourly fee 
B)  flat fee 
C)  retainer 
D)  contingency fee

Question 15

A person or entity being sued is referred to as _____.

Accepted Answer

A)  plaintiff 
B)  defendant 
C)  bailee 
D)  petitioner 
A)  plaintiff 
B)  defendant 
C)  bailee 
D)  petitioner

Question 16

A(n)_____ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

Accepted Answer

A)  exculpatory agreement 
B)  subcontract 
C)  unilateral contract 
D)  option contract 
A)  exculpatory agreement 
B)  subcontract 
C)  unilateral contract 
D)  option contract

Question 17

Which of the following explains the difference between limited partnership and general partnership?

Accepted Answer

A)  In limited partnerships,all partners are equally liable to the firm's debt unlike general partnerships. 
B)  In limited partnerships,partners incur single taxation on earnings unlike general partnerships. 
C)  In general partnerships,whenever the mix of partners is changed,that partnership is dissolved unlike limited partnerships. 
D)  In general partnerships,no government permission is required for the setup and maintenance of business unlike limited partnerships. 
A)  In limited partnerships,all partners are equally liable to the firm's debt unlike general partnerships. 
B)  In limited partnerships,partners incur single taxation on earnings unlike general partnerships. 
C)  In general partnerships,whenever the mix of partners is changed,that partnership is dissolved unlike limited partnerships. 
D)  In general partnerships,no government permission is required for the setup and maintenance of business unlike limited partnerships.

Question 18

Which of the following dispute resolution methods is the least expensive and much faster to complete?

Accepted Answer

A)  Litigation 
B)  Arbitration 
C)  Mediation 
D)  Piercing the veil 
A)  Litigation 
B)  Arbitration 
C)  Mediation 
D)  Piercing the veil

Question 19

A _____ is a unit recognized as having rights and duties apart from the owners of the company.

Accepted Answer

A)  retainer 
B)  utility patent 
C)  legal entity 
D)  sole proprietorship 
A)  retainer 
B)  utility patent 
C)  legal entity 
D)  sole proprietorship

Question 20

Copyright involves the expression of ideas as well as the ideas themselves.

Accepted Answer

A) True 
 B)False

Martha got billed by her lawyer for 40 minutes of consultation.Which of the following ways did the lawyer charge Martha?

_______ are the only form of legal corporation that can seek 501(c)(3)from the IRS which permits donations to the organization and considered as tax deductible to the donor.

_____ refers to the filing made with a state(s)in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business.

A person or other entity filing a lawsuit is known as _____.

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a:

Discuss the advantages and disadvantages of corporations as a business form.

Which among the following is a disadvantage of sole proprietorships?

Which among the following steps in a negotiation process is considered to be the most difficult?

Contingency fees are a fixed amount paid for a certain task.

Considering all the ways a firm can face legal threats,which of the following is not one of the ways to think about your business and avoid being sued?

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time?

When using a(n)_____,the attorney will be paid a specified amount every month regardless of the workload for that month.

A person or entity being sued is referred to as _____.

A(n)_____ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

Which of the following explains the difference between limited partnership and general partnership?

Which of the following dispute resolution methods is the least expensive and much faster to complete?

A _____ is a unit recognized as having rights and duties apart from the owners of the company.

Copyright involves the expression of ideas as well as the ideas themselves.

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Human Resource Management: Small Business Considerations

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Exam 17: Legal Issues: Recognizing Your Small Business Needs

Martha got billed by her lawyer for 40 minutes of consultation.Which of the following ways did the lawyer charge Martha?

_______ are the only form of legal corporation that can seek 501(c)(3)from the IRS which permits donations to the organization and considered as tax deductible to the donor.

_____ refers to the filing made with a state(s)in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business.

A person or other entity filing a lawsuit is known as _____.

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a:

Discuss the advantages and disadvantages of corporations as a business form.

Which among the following is a disadvantage of sole proprietorships?

Which among the following steps in a negotiation process is considered to be the most difficult?

Contingency fees are a fixed amount paid for a certain task.

Considering all the ways a firm can face legal threats,which of the following is not one of the ways to think about your business and avoid being sued?

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time?

When using a(n)_____,the attorney will be paid a specified amount every month regardless of the workload for that month.

A person or entity being sued is referred to as _____.

A(n)_____ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

Which of the following explains the difference between limited partnership and general partnership?

Which of the following dispute resolution methods is the least expensive and much faster to complete?

A _____ is a unit recognized as having rights and duties apart from the owners of the company.

Copyright involves the expression of ideas as well as the ideas themselves.

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Human Resource Management: Small Business Considerations

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