True/False
Indicate whether the sentence or statement is true
or false.
|
|
|
1.
|
A
businessperson cannot incur a penalty for violating a law or regulation of which he or she is
unaware.
|
|
|
2.
|
Errors in bookkeeping can provoke litigation.
|
|
|
3.
|
The
law considers all new, single-owner businesses to be limited liability companies unless the owner
affirmatively adopts some other form.
|
|
|
4.
|
All
corporate business forms offer limited liability to their owners.
|
|
|
5.
|
All
states permit a businessperson to operate as a limited liability company.
|
|
|
6.
|
A
limited liability company limits the liability of the firm for business debts.
|
|
|
7.
|
Corporate income is taxed twice unless it is distributed to
shareholders.
|
|
|
8.
|
Without copyright, patent, or trademark protection for a product or a mark, a
competitor can copy it.
|
|
|
9.
|
Registration is required to have a right to a particular trademark.
|
|
|
10.
|
Allowing others to use a trademark without protesting that use can constitute
abandonment of the mark.
|
|
|
11.
|
No
capital can be raised through an offering of stock without registering the shares as securities with
the Securities and Exchange Commission.
|
|
|
12.
|
A
private offering makes a certain number of shares of stock in a business firm available for purchase
by members of the public at a set price.
|
|
|
13.
|
A
buy-sell agreement establishes the criteria for the price to be paid a shareholder for his or her
ownership interest.
|
|
|
14.
|
Key-person insurance helps to cover business losses caused by the death or disability
of an essential employee.
|
|
|
15.
|
A
shareholder agreement defines relative ownership rights and interests.
|
|
|
16.
|
A
corporate agent is personally liable for contracts entered into on the corporation's
behalf.
|
|
|
17.
|
The
regulations of the Occupational Safety and Health Administration have no small business
exemptions.
|
|
|
18.
|
No
state has a law that allows employees access to their personnel records.
|
|
|
19.
|
When
a worker is fired, severance pay is required.
|
|
|
20.
|
An
employer may be liable for misrepresentation for making an undeserved, glowing recommendation to
another employer about a former employee.
|