Exam 11: Addressing Legal Issues and Managing Risk

A(n) ________ is an agreement between two or more parties that is enforceable by law.

The time period in which legal action may be taken is the ________.

The limited liability company (LLC) combines the best features of partnerships and corporations and can be an excellent choice for small business with a limited number of owners.

A low deductible will yield a ________.

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.

________ are the building blocks of business.

Contract drafting and review is something the business owner can do and should do using law books at the local library.

Explain the three types of insurance most states require business owners to carry.

How is a legal entity, such as a corporation, similar to a person? If you owned a business, why might you want it to be incorporated?

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

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

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

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

Obtain a trademark in order to ________.

Which is not a potential penalty for breaking a contract?

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

Why are contracts useful to business owners?

A ________ is the amount of loss or damage that you agree to cover before any insurance coverage takes over.

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

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