50 Questions
What is the term for ending the legal existence of a corporation by unanimous written consent of its shareholders?
Voluntary dissolution
Which act makes the theft or misappropriation of a trade secret a federal crime?
Economic Espionage Act
What is the minimum number of shareholders required to have a valid vote?
Quorum of shareholders
What is a process, chemical formula, list, plan, or mechanism known only to an employer and those employees who need to know in order to use it in business?
Trade secret
What is a word, name, symbol, or device or any combination thereof adopted and used by a manufacturer or merchant to identify his goods and distinguish them from goods manufactured or sold by others?
Trademark
What is the right of shareholders to protect dilution of their percentage of share ownership?
Preemptive right
How many years does it take for employees to be entitled to vested interests in retirement benefits under the Employee Retirement Income Security Act?
Five years
What is the term for intangible personal property?
Intellectual property
What happens to a partnership when it becomes bankrupt under the Uniform Partnership Act (UPA)?
It is dissolved by the operation of law
What is the duration of a design patent?
Fourteen years
Which doctrine states that infringing products, processes, or machines need not be identical?
Doctrine of equivalents
What is the ultimate goal of the incorporation process?
Issuance of a corporate charter
What type of stock has an inflated consideration that is in fact less than the par value?
Watered stock
What is true about a free market?
It is a market where commerce is legally constrained by what is economically and socially desirable
What is the main focus of the legal realist school of thought?
The social context of law
What type of agreement requires a potential employee to belong to the union before being hired and to remain a member during employment?
Closed shop agreement
What is the process of finishing the business at hand, settling accounts, and terminating the firm in a partnership?
Winding up
What is the relationship between two contracting parties, occupying adjoining levels in a product distribution system?
Vertical privity
What is the main goal of the Trademark Dilution Act?
To protect the owners of marks of significant value
What is the manager's fiduciary duty?
The moral duty to act as responsible agents to owners
What type of partnership is formed when one partner does not participate in the day-to-day activities and the other partner is singularly liable for any loss?
Limited Partnership
Under what statute must a partnership agreement be in writing to avoid invalidation?
Statute of Frauds
What is true of partnerships between parents and minor children?
They are lawful
What theory states that a business firm is a legal person with existence and accountability separate from its owner's?
Entity Theory
What is a person who finances a business and receives an ownership interest in return called?
Equity Shareholder
What is a dividend?
A share of the corporation's profits
What type of partnership has limited liability for its partners?
Limited Liability Partnership
What is the characteristic of a limited partnership?
One partner has unlimited liability
What is the term for a business firm with a legal existence separate from its owners?
Entity
Which of the following has elements of both equity and debt?
Preferred stocks
What is the common-law theory of partnerships?
Common Name for an Aggregate of Individuals
What is the characteristic of a municipal corporation?
It is not organized for profit
What is a derivative action?
A lawsuit brought on behalf of a shareholder
What is the meaning of proxy?
A method of electing a representative
What is an implied power?
A power that is beyond a corporate power
What is the characteristic of a publicly held corporation?
The stock is widely held
What is strict products liability?
A liability imposed on a merchant-seller
What is the legal right given to authors to prevent others from duplicating a protected work?
Copyright
What is a grant from the government that gives an inventor the exclusive right to make, use, and sell an invention?
Patent
What is a collective bargaining agreement provision under which an employer agrees to refrain from dealing with certain people or from purchasing their products?
Hot cargo
What is the process of paying the creditors and distributing the assets of a corporation?
Liquidation
What type of market involves resale of shares by brokers?
Secondary
What is a transferable share known as?
Security
Who is considered a tippee in a situation involving insider trading?
A tippee
What is insider trading?
Trading shares based on confidential information
Who sells shares directly to the public at $50 per share?
A company
What happens to the price of shares when the company's new undertaking is successful?
It increases
Who is informed about the company's important decisions and board meetings?
An investor with significant influence
What is the percentage of shares owned by Hannah in Floating Walls Inc.?
12%
What percentage of shares does Hannah sell in the market after obtaining confidential information?
5%
Test your knowledge of business law concepts including corporate dissolution, trade secrets, shareholder quorum, and more. Evaluate your understanding of these essential legal principles and identify areas for improvement.
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