Biz Law Ch 2 Business Legal Basics

All states have the same legal requirements when it comes to forming and running a business organization.

• True
• False

Partnerships can begin with just a verbal agreement, but legally, it is pushed to create a partnership agreement.

• True
• False

Sole Proprietorships are fully in charge of all aspects of their day-to-day business activities.

• True
• False

LLC’s are known for helping protect owners’ personal assets.

• True
• False

A corporation is not a legal entity separate from its shareholders.

• True
• False

The purpose of a non-profit is something other than making a profit and it benefits the public.

• True
• False

Non-profits do not have as much paperwork as other business entities when it comes to forming and running their business.

• True
• False

Corporations don’t have to register with the state and need to determine company directors.

• True
• False

A franchisee must pay the franchiser in order to open up a franchise business.

• True
• False

It’s important for businesses to know what can get them into legal trouble.

• True
• False