WorksheetsLegal Aspects of Business
Total questions: 34
Worksheet time: 11mins
Name
Class
Date
1.
When one company provides a product or service without competition--this is a...
a)
bankruptcy
b)
monopoly
c)
copyright
d)
public franchise
2.
When one of these exists, it may better for consumers than if competition existed because of the large cost involved in supplying the product or service.
a)
monopoly
b)
price discrimination
c)
trademark
d)
natural monopoly
3.
The rivalry between companies for consumers' dollars is...
a)
competition
b)
price discrimination
c)
collusion
d)
bankruptcy
4.
If a monopoly exists, how is the consumer usually affected?
a)
lots of supply with low prices
b)
supply and prices are not affected
c)
limited supply and higher prices
d)
a monopoly wouldn't affect the consumer
5.
Natural monopolies usually exist in which industry?
a)
transportation (airlines, automobiles, buses)
b)
banking
c)
public utilities
d)
electronics
6.
The law that outlaws false advertising
a)
Sherman Antitrust Act
b)
Clayton Act
c)
Robinson-Patman Act
d)
Wheeler-Lea Act
7.
This law made it illegal for companies to set prices (collusion).
a)
Sherman Antitrust Act
b)
Clayton Act
c)
Robinson-Patman Act
d)
Wheeler-Lea Act
8.
This law made it illegal to sell the same product (same quality, same quantity) for different prices to different buyers.
a)
Sherman Antitrust Act
b)
Clayton Act
c)
Robinson-Patman Act
d)
Wheeler-Lea Act
9.
This law made it illegal to buy controlling shares in competitors' companies to create a monopoly.
a)
Sherman Antitrust Act
b)
Clayton Act
c)
Robinson-Patman Act
d)
Wheeler-Lea Act
10.
This agency protects businesses from unfair methods of competition.
a)
Federal Trade Commission (FTC)
b)
Federal Competition Commission (FCC)
c)
Federal Transportation Commission (FTC)
d)
Federal Monopoly Commission (FMC)
11.
The legal process of selling assets to cover debt is...
a)
price discrimination
b)
monopoly
c)
bankruptcy
d)
licensing
12.
A business can remain open and continue doing business after filing bankruptcy.
a)
True
b)
False
13.
An agreement in which the federal government gives an inventor the sole right for 20 years to make, use and sell an invention.
a)
patent
b)
copyright
c)
trademark
d)
license
14.
Used by state and local governments to limit and/or control certain types of businesses. (i.e. restaurants, beauty salons)
a)
patent
b)
copyright
c)
trademark
d)
license
15.
A distinguishing name, symbol or special mark that is legally reserved for the sole use of the owner. (Nike swoosh, Twitter bird)
a)
patent
b)
copyright
c)
trademark
d)
license
16.
The sole right to reproduce, publish and sell literary or artistic work is...
a)
patent
b)
copyright
c)
trademark
d)
license
17.
This law makes it illegal to sell any impure or unhealthful food, drug or cosmetic.
a)
Warranty Act
b)
Federal Food, Drug and Cosmetic Act
c)
Food and Drug Administration
d)
Electronic Communication Privacy Act
18.
This law sets safety standards on many products such as baby equipment and toys.
a)
Consumer Product Safety Act
b)
Warranty Act
c)
Federal Food, Drug and Cosmetic Act
d)
Electronic Communication Privacy Act
19.
This law requires sellers to specify what they will or will not do if their product is found to be defective.
a)
Consumer Product Safety Act
b)
Warranty Act
c)
Federal Food, Drug and Cosmetic Act
d)
Electronic Communications Privacy Act
20.
Which piece of personal information probably makes you the most susceptible to identity theft if it falls into the wrong hands?
a)
full legal name
b)
full address
c)
birthdate
d)
social security number
21.
If a business mishandles a customer's personal information, the customer is the only one who is liable.
a)
True
b)
False
22.
Small files placed on personal computers by companies to gather information about consumer's online activity are...
a)
licenses
b)
cookies
c)
copyrights
d)
trademarks
23.
Business operations and transactions that cross state lines is called...
a)
interstate commerce
b)
intrastate commerce
c)
all-state commerce
d)
multi-state commerce
24.
Some businesses must be licensed, but property can be licensed too (such as software).
a)
True
b)
False
25.
A contract that allows a business to use public property for private profit is...
a)
competition
b)
intrastate commerce
c)
license
d)
public franchise
26.
Controls to regulate the physical features of structures
a)
zoning
b)
building codes
c)
license
d)
public franchise
27.
Regulations specifying how land may be used.
a)
zoning
b)
building codes
c)
license
d)
public franchise
28.
The biggest portion of the federal budget gets collected from...
a)
loans from China
b)
corporate income tax
c)
social security and medicare tax
d)
individual income tax
29.
What does our federal government spend the biggest part of the budget on?
a)
social security and medicare
b)
national defense
c)
education
d)
interest on debt
30.
If the tax rate stays the same regardless of the amount on which the tax is imposed is describing a...
a)
regressive tax
b)
progressive tax
c)
fair tax
d)
proportional tax
31.
The actual tax rate decreases as income increases describes a...
a)
regressive tax
b)
progressive tax
c)
fair tax
d)
proportional tax
32.
The tax rate increases as income increases describes a...
a)
regressive tax
b)
progressive tax
c)
fair tax
d)
proportional tax
33.
The FICA tax includes...
a)
property tax
b)
sales tax
c)
social security and medicare tax
d)
excise tax
34.
The type of tax levied on specific products, such as cigarettes, gasoline and license plates, is called a...
a)
income tax
b)
excise tax
c)
property tax
d)
corporate tax
100 %
