Ch42-TB1-WBL-10O¦êv-F to Eric

Ch42-TB1-WBL-10O¦Ã&ordf...

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Chapter 42 Law for Small Businesses N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A businessperson cannot incur a penalty for violating a law or regulation of  which he or she is unaware. ANSWER: F PAGE: 847 TYPE: = 2. Errors in bookkeeping can provoke litigation. ANSWER: T PAGE: 848 TYPE: N 3. The law considers all new, single-owner businesses to be limited liability  companies unless the owner affirmatively adopts some other form. ANSWER: F PAGE: 848 TYPE: = 4. All corporate business forms offer limited liability to their owners. ANSWER: T PAGE: 849 TYPE: = 5. All states permit a businessperson to operate as a limited liability company. 165
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166 TEST BANK 1—UNIT EIGHT: BUSINESS ORGANIZATIONS ANSWER: T PAGE: 849 TYPE: N
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CHAPTER 42: LAW FOR SMALL BUSINESS 167 6. A limited liability company limits the liability of the firm for business  debts. ANSWER: F PAGE: 849 TYPE: N 7. Corporate income is taxed twice unless it is distributed to shareholders. ANSWER: F PAGE: 851 TYPE: N 8. Without copyright, patent, or trademark protection for a product or a mark,  a competitor can copy it. ANSWER: T PAGE: 853 TYPE: + 9. Registration is required to have a right to a particular trademark. ANSWER: F PAGE: 853 TYPE: = 10. Allowing others to use a trademark without protesting that use can consti- tute abandonment of the mark. ANSWER: T PAGE: 854 TYPE: = 11. No capital can be raised through an offering of stock without registering the  shares as securities with the Securities and Exchange Commission. ANSWER: F PAGE: 857 TYPE: = 12. A private offering makes a certain number of shares of stock in a business  firm available for purchase by members of the public at a set price. ANSWER: F PAGE: 857 TYPE: = 13. A buy-sell agreement establishes the criteria for the price to be paid a  shareholder for his or her ownership interest. ANSWER: T PAGE: 857 TYPE: = 14. Key-person insurance helps to cover business losses caused by the death or  disability of an essential employee. ANSWER: T PAGE: 857 TYPE: =
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168 TEST BANK 1—UNIT EIGHT: BUSINESS ORGANIZATIONS 15. A shareholder agreement defines relative ownership rights and interests. ANSWER: T PAGE: 857 TYPE: N
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CHAPTER 42: LAW FOR SMALL BUSINESS 169 16. A corporate agent is personally liable for contracts entered into on the  corporation’s behalf.
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Ch42-TB1-WBL-10O¦Ã&ordf...

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