Deck 11: Legal Aspects of Business

Question 1

A monopoly exists as long as there are at least two producers.

Answer 1

False

Question 2

Prices are usually higher where a monopoly exists than where competition exists.

Answer 2

True

Question 3

The Sherman Antitrust Act allows competitors to agree to set the same selling prices on goods.

Answer 3

False

Question 4

Competitive pricing causes less efficient companies to struggle for survival.

Question 5

Records of unpaid debts of a bankrupt firm stay on file for 10 years.

Question 6

A bankrupt firm cannot again file for bankruptcy for 6 years.

Question 7

Through a patent, the federal government gives an inventor a monopoly on newly created products for the life of the inventor.

Question 8

Stealing patents is an acceptable practice in some countries.

Question 9

It is legal to publish copyrighted work without permission of the copyright owner.

Question 10

Businesses are required by law to recall, repair, or stop selling defective products.

Question 11

If a customer is refused a loan because a store gave an incorrect credit balance to a bank, the bank is as liable as the store that provided the incorrect information.

Question 12

It is a crime for any unauthorized person to access a computer system and view, use, or change data.

Question 13

Cookies are files created by some websites that track customers on the Internet to identify their marketing preferences.

Question 14

Interstate commerce is defined as business transacted within a state.

Question 15

The government can refuse to license some new businesses just because there are already enough of those types of businesses operating.

Question 16

It is possible to both copyright and license a software program.

Question 17

In proportional taxation, those with lower incomes pay more dollars than those with higher incomes.

Question 18

A regressive tax is one in which the actual tax rate increases as the taxable amount drops.

Question 19

Income taxes in almost all developed nations are lower than income taxes in the United States.

Question 20

Which act forbids a business to require buyers to purchase other goods in order to get the product they want from that business?

A) Clayton Act
B) Robinson-Patman Act
C) Sherman Antitrust Act
D) Federal Power Act

Question 21

Which act outlaws unfair practices, such as false advertising?

A) Clayton Act
B) Robinson-Patman Act
C) Sherman Antitrust Act
D) Wheeler-Lea Act

Question 22

Selling tires at $40 each to one buyer and $43 each to another buyer is prohibited by the

A) Wheeler-Lea Act
B) Sherman Antitrust Act
C) FTC Act
D) Robinson-Patman Act

Question 23

The practice that allows a business to sell its assets to pay its debts is called

A) liquidation
B) consolidation
C) licensing
D) bankruptcy

Question 24

When a business files for bankruptcy, what does the law allow when cash is not available to pay the debts after assets are sold?

A) The law excuses the business from paying all the remaining unpaid debts.
B) The law excuses the business from paying some of the remaining unpaid debts.
C) The law requires paying all creditors the full amount owed.
D) The law requires paying all creditors a portion of the debt, depending upon the reason for the debt.

Question 25

Which statement is true about patents?

A) Japan's patents protect inventors as well as promote technology sharing.
B) U.S.patents protect inventors as well as promote technology sharing.
C) Japan's patents do not promote technology sharing, and U.S.patents do not protect inventors.
D) Japan's patents promote technology sharing, but U.S.patents protect inventors.

Question 26

A patent can be considered a

A) permanent monopoly
B) temporary monopoly
C) fair-use guarantee
D) protection against recall

Question 27

For how many years does the federal government grant an author the sole right to reproduce, publish, and sell literary or artistic work?

A) For the life of the author
B) For the life of the author plus 70 years
C) 50 years
D) 17 years

Question 28

A trademark provides legal protection for

A) a business's name or symbol
B) an author's work
C) a new product or invention
D) a license

Question 29

FDA laws prohibit the sale of food that

A) makes health claims
B) carries no expiration date
C) has not been washed
D) is improperly labeled

Question 30

Regulations that identify where specific types of businesses can be located are known as

A) building codes
B) zoning regulations
C) franchises
D) licenses

Question 31

Which of these companies would MOST likely operate as a natural monopoly?

A) a coffee shop
B) a taxi service
C) a natural gas company
D) a cell phone provider

Question 32

A tax rate that increases as one's income increases is called a

A) progressive tax
B) regressive tax
C) proportional tax
D) flat tax

Question 33

Because the sales tax applies to purchases rather than to income, the general sales tax is

A) progressive
B) an excise tax
C) regressive
D) proportional

Question 34

A tax rate of 8 percent that applies to all levels of income is a

A) proportional tax
B) regressive tax
C) progressive tax
D) FICA tax

Question 35

With a regressive tax policy, the actual tax rate

A) decreases as the taxable amount decreases
B) decreases as the taxable amount increases
C) increases as the taxable amount increases
D) increases as the taxable amount decreases

Question 36

The income tax levied on businesses usually applies to

A) gross profits
B) employee wages
C) stock value
D) net profits

Question 37

The sales tax applied to gasoline and cigarettes is a(n)

A) excise tax
B) income tax
C) property tax
D) tariff

Question 38

A personal property tax would be applied to

A) commercial land
B) commercial buildings
C) leased buildings
D) factory equipment

Question 39

Match each item with the correct statement below.

-Exists when only one company provides a product or service without competition from other companies.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 40

Match each item with the correct statement below.

-Protects an inventor for 20 years.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 41

Match each item with the correct statement below.

-A distinguishing name, symbol, or mark reserved for the sole use of the one owner.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 42

Match each item with the correct statement below.

-Electronic files of information about the user that some websites create and store on the user's own computer.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 43

Match each item with the correct statement below.

-Applies to products made in one state and sold in other states.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 44

Match each item with the correct statement below.

-Responsibility for injury arising from wrongful use of data.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 45

Match each item with the correct statement below.

-Selling to customers located in the same state.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 46

Match each item with the correct statement below.

-Permits a business to use public property for private profit.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 47

Match each item with the correct statement below.

-Specifies which land areas may be used for homes or businesses.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning

Question 48

Match each item with the correct statement below.

-Tax levied on selected products, such as gasoline.

A)building codes
B)Cookies
C)excise tax
D)FTC
E)income tax
F)information liability
G)interstate commerce
H)intrastate commerce
I)monopoly
J)patent
K)public franchise
L)sales tax
M)trademark
N)zoning