Exam 43: B: Law for Small Business

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

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

Jess and Kaley own and operate Little Tykes,a small-business enterprise.Little Tykes pays taxes on its profits,and Jess and Kaley pay taxes on the profits that are afterwards distributed to them.Little Tykes is

A member of a limited liability company must be a natural person.

An attorney may be helpful when a business negotiates a franchise agreement.

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?

Klee wants to make and sell a computer operating system under a trade?mark.To obtain the most protection under the law,Klee should choose a mark that is

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

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,

The duties of a limited liability company's members may not be limited by its operating agreement.

To incorporate,you must first choose a corporate name and file it with the appropriate state office.

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

Business networks do not help to identify a knowledgeable attorney.

Philo wants to start a new business enterprise.Because it is difficult,if not impossible,to keep up with the many legal rules that govern business conduct,Philo most likely needs to consult

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

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

There are no benefits to establishing a more formal business arrangement than a sole proprietorship.

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

Standard-form contracts are available on the Internet,but they should be adapted to the specific circumstances of a transaction.

Corporate bylaws are the company's governing rules.