ENTR 302 Chapter 14

Which of the following is the best way to use the Internet for legal matters?

• procure free legal advice for start-up concerns

• compile a list of several potential legal counsel options

• identify the lowest-cost legal counsel

• find sample documents that can be used to create contracts

What business entity term refers to a business owner who has not formed a separate entity to run the business?

• sole practitioner

• self-employed

• sole proprietorship

• nonentity small business

In an S corporation, what is the maximum number of shareholders allowed?

• 12

• 50

• 75

• 100

An entrepreneur is interested in beginning a startup. They want to use the simplest and most inexpensive form of legal structure. Which legal structure should they choose?

• sole proprietorship

• general partnership

• C corporation

• S corporation

What legal structure determines minimum wage and overtime pay?

• Civil Liberties Act

• Equal Opportunity Act

• Fair Labor Standards Act

• Minimum Wage Act

An entrepreneur began developing a product with a former employer. When the employer showed no initial interest in the product, the entrepreneur left the company to finish developing it on their own. They now want to market the product as their own. Which action would be best for them to take next?

• Market it before the former employer does.

• Consult an IP attorney to review employee contracts and applicable laws.

• Keep all documentation proving that they are the inventor.

• Market the product in another country.

Any word, name, symbol, or device used in business to identify and promote a product is called a (a)   .

In most countries, if you disclose before filing a patent application, you will not be permitted to patent it at all.

• True

• False

In a sole proprietorship, you are personally responsible for problems such as injuries on the job or loans taken out on behalf of the business.

• True

• False

Choosing the wrong business structure can lead to incurring higher taxes than necessary.

• True

• False