Virtual Business Module 3 Practice Test - Legal Requirements

A(n) _____ is required to allow business owners to conduct business out of their homes.

• home occupation permit

• in-home license

• in-home permit

• home license

Protecting all customer _____ is important, but protecting a customer’s financial _____ is essential.

• data; data

• history; history

• questions; data

• taxation, history

A _____ is a basic permit allowing any business to operate locally.

• general business license

• business permit

• corporate business license

• sole business license

A _____ is a certificate that gives permission to businesses to sell specific kinds of goods or services.

• business permit

• goods permit

• goods and services permit

• services permit

A _____ is required for companies offering highly skilled services.

• professional and trade license

• skills license

• highly skilled license

• skills and trades license

Which practice requires a professional and trade license?

• accounting

• instrument making

• web designing

• landscaping

Which job does NOT require a professional and trade license?

• handcrafter

• doctor

• attorney

• hair stylist

_____ are actually their own legal entities formed as a business that can buy assets, pay taxes, and even be sued.

• Corporations

• Sole proprietorships

• Limited liability companies

• Partnerships

______ are the cheapest legal business structures to form but place debt and legal liabilities on the owner.

• Sole proprietorships

• Limited liability companies

• Partnerships

• Corporations

All licenses and tax regulations apply to _____ just as they do brick-and-mortar companies.

• virtual businesses

• sole proprietorships

• privacy policies

• none of these