#1
Which of the following is not a type of legal business entity?
Freelancing
ExplanationFreelancing is not a formal legal business entity but rather a form of self-employment.
#2
Which document outlines the basic governing principles of a corporation?
Articles of incorporation
ExplanationArticles of incorporation establish the corporation's existence and structure.
#3
What is the main purpose of intellectual property laws in business?
To protect inventions and creative works
ExplanationIntellectual property laws safeguard unique creations from unauthorized use or reproduction.
#4
What is the primary purpose of contract law in business?
To enforce agreements between parties
ExplanationContract law ensures the fulfillment of obligations agreed upon by parties.
#5
Which court system handles cases related to federal laws and the Constitution?
Federal courts
ExplanationFederal courts have jurisdiction over cases involving federal laws and constitutional issues.
#6
What is the significance of the Uniform Commercial Code (UCC) in business transactions?
It standardizes business laws related to sales and commercial transactions
ExplanationThe UCC provides consistency and clarity in commercial transactions across different states.
#7
What is the purpose of a non-disclosure agreement (NDA) in business?
To protect sensitive information from being shared with third parties
ExplanationNDAs safeguard confidential information from unauthorized disclosure.
#8
Which of the following is a characteristic of a limited liability company (LLC)?
Limited number of owners
ExplanationLLCs limit liability for owners and have flexibility in ownership structure.
#9
What is the purpose of antitrust laws?
To prevent unfair competition and monopolies
ExplanationAntitrust laws promote competition and prevent market domination by large firms.
#10
What is the purpose of the Securities and Exchange Commission (SEC) in the United States?
To oversee financial markets and protect investors
ExplanationThe SEC regulates financial markets and ensures investor protection.
#11
Which legal concept allows individuals to sue for harm caused by defective products?
Tort law
ExplanationTort law enables individuals to seek compensation for injuries or damages caused by others' negligence or wrongdoing.
#12
What is the purpose of bankruptcy laws?
To provide relief to debtors and facilitate orderly distribution of assets
ExplanationBankruptcy laws offer a legal process for debt relief and asset distribution in insolvent situations.
#13
What is the purpose of the Foreign Corrupt Practices Act (FCPA)?
To combat bribery and corruption in international business transactions
ExplanationThe FCPA prohibits bribery of foreign officials and promotes integrity in international commerce.