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

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

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.

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

Question 5

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

Accepted Answer

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.

Question 7

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

Accepted Answer

The answer of Discuss the advantages and disadvantages of corporations...

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.

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.

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

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.

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

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

Question 15

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

Accepted Answer

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

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.

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

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

Question 20

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

Accepted Answer