1. Carl starts up, and assumes the financial risk of, DataWorks, a new Web marketing enterprise. Carl and DataWorks must meet legal requirements relating to
a. occupational licensing
b. business name and state tax registration
c. intellectual property laws
d. all of the choices
Nina, the owner of Organic Farm, a sole proprietorship, wants to obtain additional capital to operate. This can be accomplished by
a. a Small Business Administration Loan
b. a bank loan
c. any of the choices
d. a state grant
3. Cliff is a member of Dental Clinic, LLC. Cliff can participate in the firm’s management to
a. the extent that he assumes liability for the firm's debts
b. the extent of his investment in the firm
c. no extent
d. any extent
4. Ann is a corporate officer for Blooming Flora, Inc. As a corporate officer, Ann is
a. the head of the board of directors
b. the employer of the firm
c. in charge of approving the shareholders
d. an employee of the firm
5. Allen wants Wilderness Outfitters to join with him to form and do business as Canyon River Rafting Corporation. A corporation can be owned by
a. natural persons only
b. other businesses only
c. other businesses or natural persons.
d. none of the choices
6. Security Insurance, Inc. has a board of five directors. Security’s bylaws do not state any quorum requirements. In most states, a quorum for Security’s board meetings would be
a. 4
b. 5
c. 3
d. 1