Question 1

To raise equity capital by crowdfunding, Data Analytica Inc.

Accepted Answer

Crowdfunding for equity capital typically requires the use of an online fundraising platform that is registered with the Securities and Exchange Commission (SEC). This ensures regulatory compliance and investor protection.

Question 2

As with other online businesses, the customers of Biz.com are heavily reliant on the firm's reputation. For an online business, dealing in good faith

Accepted Answer

Online businesses, including Biz.com, often rely heavily on their reputation to attract and retain customers. Dealing in good faith is crucial in building and maintaining this reputation, especially since customers cannot physically inspect products or interact with the business in person. This makes trust and credibility even more important than it might be for a traditional brick-and-mortar business.

Question 3

Outlier Inc. hosts client accounts in servers located in foreign countries. The U.S. government issues a warrant to obtain e-mails related to a drug case from one of those accounts. Outlier refuses to comply. On the government's appeal, it is most likely that a court will order

Accepted Answer

The court is likely to order Outlier to comply with the warrant because, under U.S. law, companies operating within its jurisdiction are generally required to comply with lawful warrants for data, even if the data is stored in servers located in foreign countries. This is based on the principle that companies under U.S. jurisdiction must adhere to U.S. laws, including those related to law enforcement and data disclosure.

Question 4

Vera starts World Markets Inc., an online business to advertise and sell goods handcrafted in a variety of countries. The purpose of advertising law generally is to create marketplaces in which businesses can operate free of

Accepted Answer

The primary purpose of advertising law is to protect businesses and consumers from deceptive and unfair practices, ensuring a fair and transparent marketplace.

Question 5

Beth starts Checklist to market a new app. Debit Bank loans $30,000 to Beth for the project. Later, the debt is most likely to be discharged in bankruptcy

Accepted Answer

The answer of Beth starts Checklist to market a new...

Question 6

The advantage of crowdfunding to a small entrepreneur is

Accepted Answer

The answer of The advantage of crowdfunding to a small...

Question 7

Nina and Owen are general partners in Property Management L.P., a limited partnership. Without Nina's knowledge or consent, Owen defrauds the firm's clients, resulting in the firm's liability for the losses. The limited partners file a suit against Nina to recover their investments. She is most likely liable

Accepted Answer

In a state that does not protect innocent partners from fraud suits, Nina could be held liable even if she was unaware of Owen's fraudulent actions.

Question 8

Trade Secrets Inc. hosts client accounts in servers located in foreign countries. The U.S. government issues a warrant to obtain e-mails related to a possible criminal case from one of those accounts. Before a court, as part of a refusal to comply with the order, Trade Secrets' best arguments include that the warrant

Accepted Answer

The warrant exceeds the power of the government to conduct a reasonable search, threatens the privacy of U.S. citizens, and will cause the firm to lose business because its clients will no longer trust it to keep their data secret.

Question 9

Personnel Resources Company considers using software to analyze employee behavior with the goal of predicting wrongdoing. In this situation, the ethical focus is on

Accepted Answer

The answer of Personnel Resources Company considers using software to...

Question 10

Predictive analytics in the digital realm focuses on

Accepted Answer

Predictive analytics involves using historical data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on past data. It focuses on predicting behaviors and trends.

Question 11

Rick forms Study Groups Inc. to start a social media site online. He selects Takeaway as the domain name. Responsible for coordinating databases related to namespaces online

Accepted Answer

The Internet Corporation for Assigned Names and Numbers (ICANN) is responsible for coordinating the maintenance and procedures of several databases related to the namespaces of the Internet, ensuring the network's stable and secure operation.

Question 12

Like other online businesses, Amazing.com collects and retains its customers' account numbers and other personal information. Keeping this data private will most likely

Accepted Answer

Keeping customer data private helps protect against liability for wrongful disclosure or misuse, ensures compliance with federal and state laws that apply to both online and offline businesses, and meets the standards of foreign countries' privacy laws.

Question 13

Bill starts Castaway to market a new line of uniquely designed fishing gear. Delta Finance Company loans $50,000 to Bill for the project. Delta is most likely to recover the amount of the loan from Bill's personal assets

Accepted Answer

Delta Finance Company is most likely to recover the amount of the loan from Bill's personal assets if Bill's business is a sole proprietorship. In a sole proprietorship, there is no legal distinction between the owner and the business, so personal assets can be used to satisfy business debts.

Question 14

Pi and Quia are general partners in Risqué Investissements, a limited partnership. Without Pi's knowledge or consent, Quia defrauds potential investors into buying limited partnerships in the firm and steals the amounts of their investments. In a suit by those partners against Pi to recover for their losses, Pi is most likely liable

Accepted Answer

Pi may be liable if the investors are viewed as innocent third parties because general partners can be held liable for the wrongful acts of other partners if those acts are within the scope of the partnership's business.

Quiz 56: Business Organizations