Question 1

Corporations are considered to be legal persons or entities.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Question 3

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  True

Question 4

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

Question 5

The Limited Liability Company combines the worst features of partnerships and corporations and can be a poor choice for small businesses with a limited number of owners.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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 8

What is a Subchapter S corporation?

Accepted Answer

The answer of What is a Subchapter S corporation?...

Question 9

Corporations may not issue stock to raise money.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   Deductible
B)   Carrying cost
C)   Premium
D)   Policy
E)   Liability

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

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

Question 13

Infringement of intellectual property is ________.

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

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

Question 16

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

Question 17

What is the Law of Agency?

Accepted Answer

The answer of What is the Law of Agency?...

Question 18

________ are the building blocks of business.

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 16: Addressing Legal Issues and Managing Risk

Corporations are considered to be legal persons or entities.

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

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

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

The Limited Liability Company combines the worst features of partnerships and corporations and can be a poor choice for small businesses with a limited number of owners.

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

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

What is a Subchapter S corporation?

Corporations may not issue stock to raise money.

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

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

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

Infringement of intellectual property is ________.

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

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

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?

What is the Law of Agency?

________ are the building blocks of business.

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

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.