Exam 43: A: Law for Small Business

Huck decides to open River Raft Adventures as a tourist service and operate the business as a corporation.At the directors' initial meeting,the directors are most likely to

Brent's Barber Shop hires only independent contractors such as Christi as workers.This hiring practice allows the employer to avoid all laws governing

Unlike corporate bylaws,the articles of incorporation are easily modified.

Page opens Quik Xpress,a local delivery service.Unless Page expressly adopts a certain form of business organization,the law considers Quik to be

Payroll Services Company is a small business with ten employees.The regulations of the Occupational Safety and Health Administration exempts

Nichel designs a new office-management software program and incorpo?rates Nichel's Niche,Inc. ,to make and market it.To sell a limited number of shares of stock to the public,the firm must register the shares with

The Small Corporate Offering Registration can be used for large offerings of shares for purchase by members of the public.

Standard-form contracts are available on the Internet,and they should be used "as is" to save time and money.

To protect its trade secrets,Gnu Processes,Inc. ,may require employees that have access to the secrets to agree in their employment contracts not to

Legal limited liability generally is necessary for those who wish to raise outside capital.

The duties of a limited liability company's managers may be limited by its operating agreement.

A limited liability company has less legal flexibility than a corporation.

Mick starts a business to market nationally long-distance phone time as Mick's Minutes.Registering his trademark with the U.S.Patent and Trademark Office provides nationwide protection for the mark

One way to raise capital to expand a business is to exchange equity in the company for funds.

Limited liability organizations do not protect their owners' personal assets from liability for the organizations' obligations.

Elise and Flair are partners in Gourmet Cupcakes,a new general partnership and business enterprise.As general partners,Elise and Flair are subject to liability that is

An employer cannot check to see if a job applicant has any history of criminal conduct.

Generally,your trademark must not be the same as another's mark or so similar that confusion results.

Price and Quint are starting a small machine shop-Riverside Boat Repair-and are considering whether to organize the business as a lim?ited liability partnership.This form

Fact Pattern 43-B1 Jordan and Kacy own and operate Safety Tables,a small-business enterprise that sells adjustable tables that allow workers to safely work with large,heavy,or oddly shaped objects.The enterprise does not pay taxes on its profits,but distributes them to Jordan and Kacy who pay taxes on these amounts as their individual income.Jordan and Kacy's personal liability for Safety Tables's debts and obligations is limited. -Refer to Fact Pattern 43-B1.Safety Tables is