Bus 401 Final Exam Questions
BUSINESS LAW 401 – FINAL EXAM
1. Name three ways to finance a new business.
2. What is the primary purpose of federal bankruptcy law? a. To protect creditors b. To treat all creditors equally c. To preserve business relationships d. To discharge the debtor from burdensome debts by giving him a fresh start
3. Martha started a flower shop as a sole proprietor. After one year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
a. Martha is personally liable for the additional $75,000.
b. Martha’s business creditors can collect only the $50,000 of business assets.
c. Martha’s business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.
d. Once Martha terminates the sole proprietorship, the business creditors cannot get even the $50,000.
4. For which of the following kinds of intellectual property is a filing or registration required in order to receive protection?
a. Copyrights
b. Patents
c. Trademarks
d. A and B only
e. B and C only
5. The following will create an express warranty except: a. An affirmation of fact. b. A description of the item. c. An endorsement by a third party, such as Consumer Reports. d. A sample of the item.
6. If a manufacturer produces a defective product, sells it to a wholesaler, who sells it to a retailer, who sells it to a consumer who is injured, which parties in the chain of distribution are potentially liable under strict liability? a. Only the manufacturer b. Only the manufacturer and wholesaler c. The manufacturer, wholesaler, and retailer d. Only the party at fault e. Only the retailer
7. Name three specific government regulations that apply to starting a new business.
8.
1. Name three ways to finance a new business.
2. What is the primary purpose of federal bankruptcy law? a. To protect creditors b. To treat all creditors equally c. To preserve business relationships d. To discharge the debtor from burdensome debts by giving him a fresh start
3. Martha started a flower shop as a sole proprietor. After one year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
a. Martha is personally liable for the additional $75,000.
b. Martha’s business creditors can collect only the $50,000 of business assets.
c. Martha’s business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.
d. Once Martha terminates the sole proprietorship, the business creditors cannot get even the $50,000.
4. For which of the following kinds of intellectual property is a filing or registration required in order to receive protection?
a. Copyrights
b. Patents
c. Trademarks
d. A and B only
e. B and C only
5. The following will create an express warranty except: a. An affirmation of fact. b. A description of the item. c. An endorsement by a third party, such as Consumer Reports. d. A sample of the item.
6. If a manufacturer produces a defective product, sells it to a wholesaler, who sells it to a retailer, who sells it to a consumer who is injured, which parties in the chain of distribution are potentially liable under strict liability? a. Only the manufacturer b. Only the manufacturer and wholesaler c. The manufacturer, wholesaler, and retailer d. Only the party at fault e. Only the retailer
7. Name three specific government regulations that apply to starting a new business.
8.