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Business Law Fundamentals

Subjects : law, business-law
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The use of an asset that is not the subject of a loan to collateralize that loan.






2. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






3. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






4. Moral principles and values applied to social behavior.






5. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






6. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






7. The term used to designate a person who has an ownership interest in a limited liability company.






8. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






9. A person who makes a promise.






10. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






11. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






12. A crime committed on the Internet.






13. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






14. A gift of personal property under a will.






15. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






16. Any interest in personal property or fixtures that secures payment or performance of an obligation.






17. A check - other than a certified check - that is presented for payment more than six months after its date.






18. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






19. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






20. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






21. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






22. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






23. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






24. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






25. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






26. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






27. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






28. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






29. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






30. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






31. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






32. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






33. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






34. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






35. One designated in a will to receive a gift of real property.






36. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






37. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






38. A contract between the issuer of a bond and the bondholder.






39. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






40. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






41. An agreement that creates or provides for a security interest between the debtor and a secured party.






42. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






43. An equity (ownership) interest in a corporation - measured in units of shares.






44. Property that is movable; any property that is not real property.






45. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






46. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






47. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






48. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






49. A person who makes an offer.






50. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.