Question 1

What is the main attraction of an employment agreement for the employee?

Accepted Answer

A) Social benefits 
B) Protection against firing without cause 
C) Guaranteed promotion on a regular basis 
D) Fewer responsibilities 
E) Higher wages 
A) Social benefits 
B) Protection against firing without cause 
C) Guaranteed promotion on a regular basis 
D) Fewer responsibilities 
E) Higher wages

Question 2

Which of the following cannot be considered non-profit entities?

Accepted Answer

A) Social welfare organizations 
B) Educational institutions 
C) Churches 
D) Limited liability corporations 
E) Industry associations 
A) Social welfare organizations 
B) Educational institutions 
C) Churches 
D) Limited liability corporations 
E) Industry associations

Question 3

It is illegal to sue a former employee's startup for using trade secrets if such a lawsuit can ruin the new venture.

Accepted Answer

A) True 
 B)False

Question 4

What type of insurance can a typical startup not afford?

Accepted Answer

A) Health insurance for employees. 
B) Key person insurance. 
C) Business interruption insurance. 
D) Liability insurance. 
E) Property insurance. 
A) Health insurance for employees. 
B) Key person insurance. 
C) Business interruption insurance. 
D) Liability insurance. 
E) Property insurance.

Question 5

All of the following forms of legal entities must file an annual report with the state government in addition to their tax return except:

Accepted Answer

A) General partnerships 
B) Limited liability companies 
C) Limited partnerships 
D) Corporations 
E) Limited liability partnerships 
A) General partnerships 
B) Limited liability companies 
C) Limited partnerships 
D) Corporations 
E) Limited liability partnerships

Question 6

An S corporation can be distinguished from other types of corporations in:

Accepted Answer

A) Tax status 
B) Number of employees 
C) Areas of expertise 
D) Geographic location 
E) Annual income 
A) Tax status 
B) Number of employees 
C) Areas of expertise 
D) Geographic location 
E) Annual income

Question 7

Most national accounting firms have sufficient experience with startups.

Accepted Answer

A) True 
 B)False

Question 8

Under what condition will the law consider the company to have taken reasonable protection of its information?

Accepted Answer

A) If the company made its employees sign non-disclosure agreements 
B) If the company successfully kept the information confidential 
C) If the company protected the information through copyright laws 
D) If the company protected the information by registering patents 
E) All of the above 
A) If the company made its employees sign non-disclosure agreements 
B) If the company successfully kept the information confidential 
C) If the company protected the information through copyright laws 
D) If the company protected the information by registering patents 
E) All of the above

Question 9

What is the maximum dollar amount of a securities offering for it to still qualify for private placement exemption?

Accepted Answer

A) $100,000 
B) $500,000 
C) $1,000,000 
D) $2,000,000 
E) $5,000,000 
A) $100,000 
B) $500,000 
C) $1,000,000 
D) $2,000,000 
E) $5,000,000

Question 10

Most corporate statutes prohibit issuing stock in exchange for intangible assets.

Accepted Answer

A) True 
 B)False

Question 11

If you decided to leave your current employer and establish your own venture, what actions will decrease the likelihood of being sued for convincing other employees from the company to leave with you?

Accepted Answer

A) Working in the Human Resources department of the employer 
B) Talking to them after the business hours 
C) Talking to them over e-mail or/phone 
D) Offering them better working conditions in the new company 
E) None of the above 
A) Working in the Human Resources department of the employer 
B) Talking to them after the business hours 
C) Talking to them over e-mail or/phone 
D) Offering them better working conditions in the new company 
E) None of the above

Question 12

You can use any information you gathered at your previous job as long as it is not patented or copyright protected.

Accepted Answer

A) True 
 B)False

Question 13

The number of workers you draw from your former employer to your new company does not matter from the viewpoint of liability.

Accepted Answer

A) True 
 B)False

Question 14

The employer is responsible for any damage done by the employees occurring within the scope of their employment.

Accepted Answer

A) True 
 B)False

Question 15

There are conditions under which a corporation can be taxed as a partnership.

Accepted Answer

A) True 
 B)False

Question 16

List the common business entities and describe them.

Accepted Answer

a.Sole Proprietorship - owned and operat

Question 17

What type of business can always provide group life, disability, and health insurance policies tax-free and deduct the costs of premiums?

Accepted Answer

A) S corporation 
B) Partnership 
C) C corporation 
D) LLC 
E) All of the above 
A) S corporation 
B) Partnership 
C) C corporation 
D) LLC 
E) All of the above

Question 18

The doctrine of vicarious liability states that:

Accepted Answer

A) The employer's liability for the employee's actions is limited to a specific amount of money (the amount differs from state to state) 
B) The employer is responsible for any contract signed by the employee. 
C) The employer is responsible for any actions of the employee occurring within the scope of his/her employment 
D) The employee always answers for the consequences of his/her criminal actions without transferring the responsibility to the employer 
E) Employees can be held criminally liable if they contribute to the unlawful actions of an employer and should have reasonably understood the consequences. 
A) The employer's liability for the employee's actions is limited to a specific amount of money (the amount differs from state to state) 
B) The employer is responsible for any contract signed by the employee. 
C) The employer is responsible for any actions of the employee occurring within the scope of his/her employment 
D) The employee always answers for the consequences of his/her criminal actions without transferring the responsibility to the employer 
E) Employees can be held criminally liable if they contribute to the unlawful actions of an employer and should have reasonably understood the consequences.

Question 19

What types of insurance should a startup consider and why?

Accepted Answer

a.Property Insurance - for any equipment

What is the main attraction of an employment agreement for the employee?

Which of the following cannot be considered non-profit entities?

It is illegal to sue a former employee's startup for using trade secrets if such a lawsuit can ruin the new venture.

What type of insurance can a typical startup not afford?

All of the following forms of legal entities must file an annual report with the state government in addition to their tax return except:

An S corporation can be distinguished from other types of corporations in:

Most national accounting firms have sufficient experience with startups.

Under what condition will the law consider the company to have taken reasonable protection of its information?

What is the maximum dollar amount of a securities offering for it to still qualify for private placement exemption?

Most corporate statutes prohibit issuing stock in exchange for intangible assets.

If you decided to leave your current employer and establish your own venture, what actions will decrease the likelihood of being sued for convincing other employees from the company to leave with you?

You can use any information you gathered at your previous job as long as it is not patented or copyright protected.

The number of workers you draw from your former employer to your new company does not matter from the viewpoint of liability.

The employer is responsible for any damage done by the employees occurring within the scope of their employment.

There are conditions under which a corporation can be taxed as a partnership.

List the common business entities and describe them.

What type of business can always provide group life, disability, and health insurance policies tax-free and deduct the costs of premiums?

The doctrine of vicarious liability states that:

What types of insurance should a startup consider and why?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Entrepreneurial Growth

Social Entrepreneurship: an Overview

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Exam 12: Legal and Tax Issues, Including Intellectual Property

What is the main attraction of an employment agreement for the employee?

Which of the following cannot be considered non-profit entities?

It is illegal to sue a former employee's startup for using trade secrets if such a lawsuit can ruin the new venture.

What type of insurance can a typical startup not afford?

All of the following forms of legal entities must file an annual report with the state government in addition to their tax return except:

An S corporation can be distinguished from other types of corporations in:

Most national accounting firms have sufficient experience with startups.

Under what condition will the law consider the company to have taken reasonable protection of its information?

What is the maximum dollar amount of a securities offering for it to still qualify for private placement exemption?

Most corporate statutes prohibit issuing stock in exchange for intangible assets.

If you decided to leave your current employer and establish your own venture, what actions will decrease the likelihood of being sued for convincing other employees from the company to leave with you?

You can use any information you gathered at your previous job as long as it is not patented or copyright protected.

The number of workers you draw from your former employer to your new company does not matter from the viewpoint of liability.

The employer is responsible for any damage done by the employees occurring within the scope of their employment.

There are conditions under which a corporation can be taxed as a partnership.

List the common business entities and describe them.

What type of business can always provide group life, disability, and health insurance policies tax-free and deduct the costs of premiums?

The doctrine of vicarious liability states that:

What types of insurance should a startup consider and why?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters