Question

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

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

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

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

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

Answer 1

Answer 1: Option D – All of the choices

Explanation: As a startup in web marketing, carl will be required to understand the various licensing required to operate in the market (occupational licensing), will be required to register his firm’s name and get a tax identification (business name and state tax registration) and also will be required to understand and undergo all the intellectual property norms as per the business and domain (intellectual property laws).

Answer 2: Option C – Any of the choices

Explanation: If Nina wants to obtain additional capital to operate then she can go for a bank loan or small administration loan or a state grant.

Answer 3: Option B – The extent of his investment in the firm

Explanation: Cliff will be as much responsible for the firm’s profit and losses as much he has invested in the firm. He can only participate in the firm accordingly.

Answer 4: Option D – Employee of the firm

Explanation: A Corporate officer can be CEO or President, Vice President, Treasurer or CFO or secretary. Corporate officers are the employees of the firm.