Question 1

You do not need a patent unless you ________.

Accepted Answer

A) Believe that someone else could successfully sell the product by copying your invention 
B) Have invented a product that you intend to market yourself or sell to a manufacturer 
C) Both A and B 
D) Want to get sued 
E) None of the above 
A) Believe that someone else could successfully sell the product by copying your invention 
B) Have invented a product that you intend to market yourself or sell to a manufacturer 
C) Both A and B 
D) Want to get sued 
E) None of the above C

Question 2

Every corporation is recognized and treated under the law as ________.

Accepted Answer

A) An entity,much like a person,that has expenses and earnings 
B) A small business 
C) If it were its owners and employees 
D) A large business 
E) A stockholder 
A) An entity,much like a person,that has expenses and earnings 
B) A small business 
C) If it were its owners and employees 
D) A large business 
E) A stockholder A

Question 3

A copyright is the form of legal protection offered under U.S.law to the authors of "original works of authorship," including literary,dramatic,musical,and artistic works.

Accepted Answer

A) True 
 B)False  True

Question 4

A low deductible will yield a ________.

Accepted Answer

A) Higher premium 
B) Lower premium 
C) The deductible has no impact on the premium. 
D) Disaster 
E) Savings in all cases 
A) Higher premium 
B) Lower premium 
C) The deductible has no impact on the premium. 
D) Disaster 
E) Savings in all cases

Question 5

In limited liability companies ________.

Accepted Answer

A) Income is taxed only once,as the personal earnings of members 
B) Income is taxed twice,corporately and personally 
C) Personal assets of the owners are left legally unprotected 
D) Income is never taxed 
E) Income is overtaxed 
A) Income is taxed only once,as the personal earnings of members 
B) Income is taxed twice,corporately and personally 
C) Personal assets of the owners are left legally unprotected 
D) Income is never taxed 
E) Income is overtaxed

Question 6

The main disadvantage of corporations is that corporate income is ________.

Accepted Answer

A) Taxed twice 
B) Always high 
C) Taxed only once 
D) All of the above 
E) None of the above 
A) Taxed twice 
B) Always high 
C) Taxed only once 
D) All of the above 
E) None of the above

Question 7

A contract can protect you,regardless of whether you trust the person or not.

Accepted Answer

A) True 
 B)False

Question 8

If you invent something and don't patent it,it falls into the public domain,meaning that ________.

Accepted Answer

A) Anyone can manufacture your invention and profit from selling it without paying you 
B) You can sell the right to manufacture the invention 
C) You can sell your invention publicly without paying the U.S.Patent Office 
D) All of the above 
E) None of the above 
A) Anyone can manufacture your invention and profit from selling it without paying you 
B) You can sell the right to manufacture the invention 
C) You can sell your invention publicly without paying the U.S.Patent Office 
D) All of the above 
E) None of the above

Question 9

The form of protection offered under U.S.law to the authors of "original works of authorship" is a(n)________.

Accepted Answer

A) Copyright 
B) Electronic right 
C) Patent 
D) Right 
E) Charter 
A) Copyright 
B) Electronic right 
C) Patent 
D) Right 
E) Charter

Question 10

How is a legal entity,such as a corporation,similar to a person?

Accepted Answer

A corporation is considered a "legal per

Question 11

A 501(c)(8)is a tax-exempt legal structure that can receive charitable donations from individuals,businesses,the government,and philanthropic foundations.

Accepted Answer

A) True 
 B)False

Question 12

Corporations are considered to be legal persons or entities.

Accepted Answer

A) True 
 B)False

Question 13

Corporations may not issue stock to raise money.

Accepted Answer

A) True 
 B)False

Question 14

Why are contracts useful to business owners?

Accepted Answer

A contract is a formal agreement between

Question 15

A ________ is an official document that gives you the right to carry out a specific activity,such as an outdoor Festival.

Accepted Answer

A) Permit 
B) Certificate 
C) Warrant 
D) License 
E) Pass 
A) Permit 
B) Certificate 
C) Warrant 
D) License 
E) Pass

Question 16

The number of stockholders in a Subchapter S Corporation is limited to ________.

Accepted Answer

A) 100 
B) 50 
C) 250 
D) 12 
E) 25 
A) 100 
B) 50 
C) 250 
D) 12 
E) 25

Question 17

An advantage of sole proprietorship is that it is an easy form of business to start.

Accepted Answer

A) True 
 B)False

Question 18

A partnership consists of two or more owners who make the decisions for the business together and share the profits,losses,assets,and liabilities.

Accepted Answer

A) True 
 B)False

Question 19

Some contracts specify that conflicts may be settled through ________ instead of court.

Accepted Answer

A) Arbitration 
B) Negotiation 
C) Coercion 
D) Litigation 
E) None of the above 
A) Arbitration 
B) Negotiation 
C) Coercion 
D) Litigation 
E) None of the above

Question 20

Bankruptcy is the legal process in which an individual or business declares the inability or impaired ability to pay debts as they come due.

Accepted Answer

A) True 
 B)False

Exam 16: Addressing Legal Issues and Managing Risk

You do not need a patent unless you ________.

Every corporation is recognized and treated under the law as ________.

A copyright is the form of legal protection offered under U.S.law to the authors of "original works of authorship," including literary,dramatic,musical,and artistic works.

A low deductible will yield a ________.

In limited liability companies ________.

The main disadvantage of corporations is that corporate income is ________.

A contract can protect you,regardless of whether you trust the person or not.

If you invent something and don't patent it,it falls into the public domain,meaning that ________.

The form of protection offered under U.S.law to the authors of "original works of authorship" is a(n)________.

How is a legal entity,such as a corporation,similar to a person?

A 501(c)(8)is a tax-exempt legal structure that can receive charitable donations from individuals,businesses,the government,and philanthropic foundations.

Corporations are considered to be legal persons or entities.

Corporations may not issue stock to raise money.

Why are contracts useful to business owners?

A ________ is an official document that gives you the right to carry out a specific activity,such as an outdoor Festival.

The number of stockholders in a Subchapter S Corporation is limited to ________.

An advantage of sole proprietorship is that it is an easy form of business to start.

A partnership consists of two or more owners who make the decisions for the business together and share the profits,losses,assets,and liabilities.

Some contracts specify that conflicts may be settled through ________ instead of court.

Bankruptcy is the legal process in which an individual or business declares the inability or impaired ability to pay debts as they come due.

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, fixed, and Variable Costs

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, equity, or Both

Operating for Success

Location, facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, licensing, and Harvesting: Cashing in Your Brand

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