Unit 4 quiz 2

Angelica has been studying various forms of business ownership for her art gallery. She thinks she will select this type of legal structure because it is the easiest and most common form of business ownership for small business owners.

• Partnership

• Corporation

• Sole proprietorship

• Limited liability company

When evaluating business ownership options, an entrepreneur who asks questions like, “Do you care if other owners can take over if you are not involved?” or “Do you want to make it easy to change ownership to others?” is most concerned about what aspect of ownership?

• Continuity

• Capital Needs

• Risk

• Profits

Aaliyah is concerned about keeping her own assets separate from risks associated with her business. What legal action would protect her personal assets from her business liabilities?

• Incorporation

• Investments

• Contract

• Compliance

Dana and his manager have discussed expanding Dana’s role and responsibilities in the company. What written agreement could establish and legally bind the parameters of Dana’s new position?

• Covenant

• Business ownership

• Business incorporation

• Contract

While drafting a contract, what key principles should Jonathan and Drew remember?

• Professional representation; legal structure

• Exchange of value; offer and acceptance

• Legal structure; exchange of value

• Offer and acceptance; professional representation

Karlton discovers an employee of his pizzeria is making false representations about the business. The employee was hoping to make extra money by telling people prices were more than the price list indicated, claiming it just hadn’t been updated yet. He then pocketed the extra money. What tort law is the employee breaking?

• Defamation

• Fraud

• Negligence

• Breach of duty

What tort law are the landlords violating?

• Breach of duty

• Negligence

• Fraud

• Defamation

Sheri, a salon owner, routinely has to dispose of chemicals used for different hair and nail procedures. She cannot simply dump these chemicals into the large dumpster behind the salon with other approved trash. What law provides details explaining her responsibilities for compliance regarding hazardous waste products?

• Waste law

• Administrative law

• Tort law

• Environmental law

Sheldon, a physicist, has developed a breakthrough formula and he wants to protect it. What type of intellectual property law covers confidential information, such as a physics formula, that is in the process of being licensed?

• Trade secret

• Copyright

• Trademark

• Patent

Clement has created a logo for his company to use on all business materials and to engrave on shipping crates. What can he apply for to protect his rights to the logo?

• Trade secret

• Copyright

• Patent

• Trademark