Question 1

The four "A's" of a successful contract include: ________.

Accepted Answer

A) Avoid misunderstanding and assure work 
B) Assure payment and avoid liability 
C) Assess risk and analyze profit 
D) Assume parties will abide by the contract 
E) Both A and B 
A) Avoid misunderstanding and assure work 
B) Assure payment and avoid liability 
C) Assess risk and analyze profit 
D) Assume parties will abide by the contract 
E) Both A and B

Question 2

What is a Subchapter S corporation?

Accepted Answer

This type of corporation has a limit of

Question 3

A good contract will spell out ________,or unforeseeable "acts of God" beyond anyone's control,for which neither party is responsible.

Accepted Answer

A) Contingencies 
B) Liabilities 
C) Amendments 
D) Alterations 
E) Modifications 
A) Contingencies 
B) Liabilities 
C) Amendments 
D) Alterations 
E) Modifications

Question 4

A service mark is inferior to a trademark.

Accepted Answer

A) True 
 B)False

Question 5

What is used to identify and distinguish the source of a service rather than a product?

Accepted Answer

A) Service mark 
B) Trademark 
C) Sales mark 
D) All of the above 
E) None of the above 
A) Service mark 
B) Trademark 
C) Sales mark 
D) All of the above 
E) None of the above

Question 6

If you purchase $250,000 worth of insurance to protect your restaurant,with a $10,000 deductible,how much money are you entitled to receive as a payout if a fire destroys your store,which is valued at $250,000?

Accepted Answer

A) $240,000 
B) $10,000 
C) $250,000 
D) $350,000 
E) $290,000 
A) $240,000 
B) $10,000 
C) $250,000 
D) $350,000 
E) $290,000

Question 7

An injured party whose rights in a contract have been breached can bring a ________ against the other party.

Accepted Answer

A) Lawsuit 
B) Motion 
C) Mediation 
D) Judgment 
E) Claim 
A) Lawsuit 
B) Motion 
C) Mediation 
D) Judgment 
E) Claim

Question 8

Work-made-for-hire means you are giving up the rights to your work.

Accepted Answer

A) True 
 B)False

Question 9

To protect against lawsuits brought by anyone injured by your product,you will need to buy ________.

Accepted Answer

A) Liability insurance 
B) Casualty insurance 
C) Business insurance 
D) Life insurance 
E) Fire insurance 
A) Liability insurance 
B) Casualty insurance 
C) Business insurance 
D) Life insurance 
E) Fire insurance

Question 10

________ protects people from having property or wealth stolen,lost,or destroyed.There are many kinds,and in order to purchase it you pay a monthly,quarterly,or annual ________.

Accepted Answer

A) Insurance,premium 
B) Insurance,dividend 
C) Insurance,carrying cost 
D) Protection,dividend 
E) Coverage,carrying cost 
A) Insurance,premium 
B) Insurance,dividend 
C) Insurance,carrying cost 
D) Protection,dividend 
E) Coverage,carrying cost

Question 11

________ are the building blocks of business.

Accepted Answer

A) Contracts 
B) Personal relationships 
C) Letters of agreements 
D) Networks 
E) Loans 
A) Contracts 
B) Personal relationships 
C) Letters of agreements 
D) Networks 
E) Loans

Question 12

When putting together a contract,clearly state everything that will be done by all parties,even what is obvious.

Accepted Answer

A) True 
 B)False

Question 13

________ insurance is designed to cover in the event that a business's (its employees')failure to do something that causes harm to a customer.

Accepted Answer

A) Errors and omissions 
B) Negligence 
C) Product liability 
D) Workers Comp 
E) Flood 
A) Errors and omissions 
B) Negligence 
C) Product liability 
D) Workers Comp 
E) Flood

Question 14

Which of the following are not usually not-for-profit organizations?

Accepted Answer

A) Book stores 
B) Trade associations 
C) Charitable foundations 
D) Churches 
E) Educational institutions 
A) Book stores 
B) Trade associations 
C) Charitable foundations 
D) Churches 
E) Educational institutions

Question 15

Which is not a potential penalty for breaking a contract?

Accepted Answer

A) You may lose a share of the ownership of your business to the other party who signed the contract. 
B) You may be sued in a court of law by the other party who signed the contract. 
C) A court may order you to pay damages to the other party who signed the contract. 
D) All of the above. 
E) None of the above. 
A) You may lose a share of the ownership of your business to the other party who signed the contract. 
B) You may be sued in a court of law by the other party who signed the contract. 
C) A court may order you to pay damages to the other party who signed the contract. 
D) All of the above. 
E) None of the above.

Question 16

Federal,state and local ________ may apply to a business and may affect what it can do,how it can do it,and when and where it can operate.

Accepted Answer

A) Regulations 
B) Grants 
C) Taxes 
D) All of the above 
E) None of the above 
A) Regulations 
B) Grants 
C) Taxes 
D) All of the above 
E) None of the above

Question 17

Tax-exempt,nonprofit corporations ________.

Accepted Answer

A) Are set up with a specific mission to improve society 
B) Do not have legal liability 
C) Pay dividends more often than do for-profit corporations 
D) Do not have boards of directors 
E) Pay more taxes than do other entities 
A) Are set up with a specific mission to improve society 
B) Do not have legal liability 
C) Pay dividends more often than do for-profit corporations 
D) Do not have boards of directors 
E) Pay more taxes than do other entities

Question 18

________ insurance compensates employees for loss of income and for medical expenses due to job-related injuries.

Accepted Answer

A) Worker's compensation 
B) Injury 
C) Disability 
D) Liability 
E) Life 
A) Worker's compensation 
B) Injury 
C) Disability 
D) Liability 
E) Life

Question 19

Infringement of intellectual property is ________.

Accepted Answer

A) A crime 
B) Profitable 
C) A business tactic 
D) Commonplace 
E) Acceptable 
A) A crime 
B) Profitable 
C) A business tactic 
D) Commonplace 
E) Acceptable

Question 20

The power of a contract is that,once the individuals or other entities involved have signed it,they are obligated to comply with its terms and conditions or risk being sued and penalized according to the contract terms,or in a court of law.

Accepted Answer

A) True 
 B)False

Exam 16: Addressing Legal Issues and Managing Risk

The four "A's" of a successful contract include: ________.

What is a Subchapter S corporation?

A good contract will spell out ________,or unforeseeable "acts of God" beyond anyone's control,for which neither party is responsible.

A service mark is inferior to a trademark.

What is used to identify and distinguish the source of a service rather than a product?

If you purchase $250,000 worth of insurance to protect your restaurant,with a $10,000 deductible,how much money are you entitled to receive as a payout if a fire destroys your store,which is valued at $250,000?

An injured party whose rights in a contract have been breached can bring a ________ against the other party.

Work-made-for-hire means you are giving up the rights to your work.

To protect against lawsuits brought by anyone injured by your product,you will need to buy ________.

________ protects people from having property or wealth stolen,lost,or destroyed.There are many kinds,and in order to purchase it you pay a monthly,quarterly,or annual ________.

________ are the building blocks of business.

When putting together a contract,clearly state everything that will be done by all parties,even what is obvious.

________ insurance is designed to cover in the event that a business's (its employees')failure to do something that causes harm to a customer.

Which of the following are not usually not-for-profit organizations?

Which is not a potential penalty for breaking a contract?

Federal,state and local ________ may apply to a business and may affect what it can do,how it can do it,and when and where it can operate.

Tax-exempt,nonprofit corporations ________.

________ insurance compensates employees for loss of income and for medical expenses due to job-related injuries.

Infringement of intellectual property is ________.

The power of a contract is that,once the individuals or other entities involved have signed it,they are obligated to comply with its terms and conditions or risk being sued and penalized according to the contract terms,or in a court of law.

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

Filters

protects people from having property or wealth stolen,lost,or destroyed.There are many kinds,and in order to purchase it you pay a monthly,quarterly,or annual .