Question 1

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

Question 2

Infringement of intellectual property is ________.

Accepted Answer

A)  a business tactic 
B)  a crime 
C)  profitable 
D)  legal in some states 
A)  a business tactic 
B)  a crime 
C)  profitable 
D)  legal in some states

Question 3

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)  $240,000 less co-payment 
A)  $240,000 
B)  $10,000 
C)  $250,000 
D)  $240,000 less co-payment

Question 4

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)  Both A and B. 
A)  avoid misunderstanding and assure work 
B)  assure payment and avoid liability 
C)  assess risk and analyze profit 
D)  Both A and B.

Question 5

Permits, licenses, or certificates may be required for your business. Local, county, and state government offices, as well as chambers of commerce, are good places to contact for this information.

Accepted Answer

A) True 
 B)False

Question 6

________ 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/carrying cost 
B)  Insurance/premium 
C)  Insurance/dividend 
D)  Insurance/maintenance fee 
A)  Insurance/carrying cost 
B)  Insurance/premium 
C)  Insurance/dividend 
D)  Insurance/maintenance fee

Question 7

Of the three types of bankruptcies, Chapter 7 or Liquidation is the best choice to take.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  Negligence 
B)  Errors and omissions 
C)  Product liability 
D)  Casualty 
A)  Negligence 
B)  Errors and omissions 
C)  Product liability 
D)  Casualty

Question 9

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

Accepted Answer

A)  arbitration 
B)  motion 
C)  mediation 
D)  lawsuit 
A)  arbitration 
B)  motion 
C)  mediation 
D)  lawsuit

Question 10

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)  disasters 
A)  contingencies 
B)  liabilities 
C)  amendments 
D)  disasters

Question 11

In a corporation, all profits go to ________.

Accepted Answer

A)  reduce the surplus 
B)  the owners and the shareholders 
C)  the stockholders as salaries 
D)  the partners according to the terms of the agreement 
A)  reduce the surplus 
B)  the owners and the shareholders 
C)  the stockholders as salaries 
D)  the partners according to the terms of the agreement

Question 12

You do not need a patent unless you ________.

Accepted Answer

A)  have invented a product that you intend to market yourself or sell to a manufacturer 
B)  believe that someone else could successfully sell the product by copying your invention 
C)  Both of the above. 
D)  None of the above. 
A)  have invented a product that you intend to market yourself or sell to a manufacturer 
B)  believe that someone else could successfully sell the product by copying your invention 
C)  Both of the above. 
D)  None of the above.

Question 13

Compare the legal structure implications of a sole proprietorship and a Subchapter S Corporation for the seven parameters of 1) ownership, 2) liability, 3) taxation issues, 4) profit distribution, 5) voting on policy, 6) life of the legal structure, and 7) capitalization.

Accepted Answer

1) Ownership
• Sole proprietorship - the

Question 14

A copyright protects a songwriter, author, or visual artist. It keeps someone else from copying or appropriating the work.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  you can sell your invention publicly without paying the U.S. Patent Office 
B)  anyone can manufacture your invention and profit from selling it without paying you 
C)  you can sell the right to manufacture the invention 
D)  you can save a lot of money 
A)  you can sell your invention publicly without paying the U.S. Patent Office 
B)  anyone can manufacture your invention and profit from selling it without paying you 
C)  you can sell the right to manufacture the invention 
D)  you can save a lot of money

Question 16

Tax-exempt, nonprofit corporations ________.

Accepted Answer

A)  cannot make a profit 
B)  do not have legal liability 
C)  are set up with a specific mission to improve society 
D)  pay dividends more often than for-profit corporations 
A)  cannot make a profit 
B)  do not have legal liability 
C)  are set up with a specific mission to improve society 
D)  pay dividends more often than for-profit corporations

Question 17

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

Accepted Answer

A)  liability insurance 
B)  business insurance 
C)  casualty insurance 
D)  an umbrella policy 
A)  liability insurance 
B)  business insurance 
C)  casualty insurance 
D)  an umbrella policy

Question 18

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

Accepted Answer

A)  75 
B)  50 
C)  100 
D)  250 
A)  75 
B)  50 
C)  100 
D)  250

Question 19

Explain the difference between a copyright and a trademark and how each is useful.

Accepted Answer

A copyright is the form of legal protect

Question 20

In limited liability companies ________.

Accepted Answer

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

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

Infringement of intellectual property is ________.

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?

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

Permits, licenses, or certificates may be required for your business. Local, county, and state government offices, as well as chambers of commerce, are good places to contact for this information.

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 .

Of the three types of bankruptcies, Chapter 7 or Liquidation is the best choice to take.

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

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

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

In a corporation, all profits go to ________.

You do not need a patent unless you ________.

Compare the legal structure implications of a sole proprietorship and a Subchapter S Corporation for the seven parameters of 1) ownership, 2) liability, 3) taxation issues, 4) profit distribution, 5) voting on policy, 6) life of the legal structure, and 7) capitalization.

A copyright protects a songwriter, author, or visual artist. It keeps someone else from copying or appropriating the work.

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

Tax-exempt, nonprofit corporations ________.

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

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

Explain the difference between a copyright and a trademark and how each is useful.

In limited liability companies ________.

Entrepreneurs Recognize Opportunities

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

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 and Tactics

Operating for Success

Management, Leadership, and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters

Exam 11: Addressing Legal Issues and Managing Risk

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

Infringement of intellectual property is ________.

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?

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

Permits, licenses, or certificates may be required for your business. Local, county, and state government offices, as well as chambers of commerce, are good places to contact for this information.

________ 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 ________.

Of the three types of bankruptcies, Chapter 7 or Liquidation is the best choice to take.

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

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

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

In a corporation, all profits go to ________.

You do not need a patent unless you ________.

Compare the legal structure implications of a sole proprietorship and a Subchapter S Corporation for the seven parameters of 1) ownership, 2) liability, 3) taxation issues, 4) profit distribution, 5) voting on policy, 6) life of the legal structure, and 7) capitalization.

A copyright protects a songwriter, author, or visual artist. It keeps someone else from copying or appropriating the work.

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

Tax-exempt, nonprofit corporations ________.

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

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

Explain the difference between a copyright and a trademark and how each is useful.

In limited liability companies ________.

Entrepreneurs Recognize Opportunities

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

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 and Tactics

Operating for Success

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 .