Exam 43: Law for Small Business

Elan Elite Service Company's offer of shares of stock in itself to anyone who is willing to pay $600 per share is

Companies may require employees who have access to trade secrets to agree in their employment contracts never to divulge those secrets.

A business plan describes a company,its products,and its anticipated future performance.

The five shareholders of Orthopedic Ease,Inc.,a medical equipment firm,want to prevent each other from sell?ing the shares to third parties without first being given the opportu?nity to buy them.This can be provided for in

The states and the Securities and Exchange Commission jointly created a simplified securities registration process for large businesses.

National Standard Company (NSC)products are identified with a trade?mark.For several years,NSC al?lows others to use the mark without permission and without protest.This may be deemed,on NSC's part,

Josh and Kya form Longview Associates,a limited part?nership,to invest in real estate.Compared to a sole proprietorship and a general partnership,a limited partnership has limited

Quisha operates River Valley Soccer,an athletic equipment shop,as a sole proprietorship.Taxes on the business's income are paid by

One way to raise capital to expand a business is to borrow the funds.

Nero opened Oh! Fudge!,a candy store,as a corporation.When doing busi?ness on behalf of the store,to avoid personal liability,Nero should sign contracts

Mabel and Nahim want to start up and incorporate a new business enterprise.The first step in the incorporation process is to

Dallas and Ellyn operate Freestyle Riders,a bicycle shop,as a part?nership.Taxes on the business's income are paid by

Electro,Inc.,makes and sells electric bikes,as well as parts and service,to customers in the United States and other countries.Can Electro pre?vent its employees from revealing its customer lists,pricing policies,and other confidential information,if the em?ployees resign to work for a com?petitor or to enter the same business themselves? How?

A business entity's limited personal liability obviates the need to obtain insurance for significant business liability risks.

Generally,your trademark must be the same as another's mark or so similar that confusion results.

A limited liability company's members must be its managers.

Bild-It-Rite Corporation uses independent contractors.Bild-It-Rite can

Global Tours,a travel agency,is a limited liability company.Global is ex?empt from legal requirements that relate to

Quia and Rafi form SA,LLC,a limited liability company,to operate Superior Athletics,a fitness center.Compared to a sole pro?prietorship and a general partnership,a limited liability company has limited

A limited liability organization's limited liability may be lost by failure to comply with the rules for a business form.