Question 1

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  True

Question 2

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

Accepted Answer

A)  Taxed twice
B)  Always high
C)  Taxed only once
D)  All of the above
E)  None of the aboveF) A) and E)
G) A) and B)

Question 3

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 stockholderF) A) and D)
G) C) and E) A

Question 4

A low deductible will yield a ________.

Accepted Answer

A)  Higher premium
B)  Lower premium
C)  The deductible has no impact on the premium.
D)  Disaster
E)  Savings in all casesF) None of the above
G) A) and E)

Question 5

You do not need a patent unless you ________.

Accepted Answer

A)  Believe that someone else could successfully sell the product by copying your invention
B)  Have invented a product that you intend to market yourself or sell to a manufacturer
C)  Both A and B
D)  Want to get sued
E)  None of the aboveF) C) and D)
G) A) and B) C

Question 6

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

Accepted Answer

A)  100
B)  50
C)  250
D)  12
E)  25F) C) and D)
G) B) and E)

Question 7

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

Accepted Answer

A)  Permit
B)  Certificate
C)  Warrant
D)  License
E)  PassF) C) and D)
G) C) and E)

Question 8

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

Question 9

A partnership consists of two or more owners who make the decisions for the business together and share the profits,losses,assets,and liabilities.

Accepted Answer

A) True 
 B)False

Question 10

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 aboveF) B) and C)
G) A) and E)

Question 11

Why are contracts useful to business owners?

Accepted Answer

A contract is a formal agreement between...

Question 12

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

Accepted Answer

A)  Copyright
B)  Electronic right
C)  Patent
D)  Right
E)  CharterF) A) and D)
G) None of the above

Question 13

In limited liability companies ________.

Accepted Answer

A)  Income is taxed only once,as the personal earnings of members
B)  Income is taxed twice,corporately and personally
C)  Personal assets of the owners are left legally unprotected
D)  Income is never taxed
E)  Income is overtaxedF) None of the above
G) B) and C)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Corporations may not issue stock to raise money.

Accepted Answer

A) True 
 B)False

Question 16

How is a legal entity,such as a corporation,similar to a person?

Accepted Answer

A corporation is considered a "legal per...

Question 17

An advantage of sole proprietorship is that it is an easy form of business to start.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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

Accepted Answer

A)  Arbitration
B)  Negotiation
C)  Coercion
D)  Litigation
E)  None of the aboveF) A) and B)
G) B) and E)

Question 20

Corporations are considered to be legal persons or entities.

Accepted Answer

A) True 
 B)False

Exam 16: Addressing Legal Issues and Managing Risk

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.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

A low deductible will yield a ________.

Correct AnswerverifiedShow Answer

You do not need a patent unless you ________.

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A partnership consists of two or more owners who make the decisions for the business together and share the profits,losses,assets,and liabilities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why are contracts useful to business owners?

Correct AnswerverifiedA contract is a formal agreement between...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In limited liability companies ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Corporations may not issue stock to raise money.

Correct AnswerverifiedShow Answer

How is a legal entity,such as a corporation,similar to a person?

Correct AnswerverifiedA corporation is considered a "legal per...View AnswerShow Answer

An advantage of sole proprietorship is that it is an easy form of business to start.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Corporations are considered to be legal persons or entities.

Correct AnswerverifiedShow Answer

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True

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A

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C

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A contract is a formal agreement between...
View Answer

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A corporation is considered a "legal per...
View Answer

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