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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 purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






2. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






3. A person on the board of directors who is also an officer of the corporation.






4. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






5. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






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






7. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






8. A type of contract that arises when a promise is given in exchange for a return promise.






9. The purchase or sale of securities on the basis of information that has not been made available to the public.






10. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






11. Within a specified time period or - if no period is specified - within a reasonable time.






12. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






13. 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






14. A contract that has been completely performed by both parties.






15. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






16. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






17. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






18. A set of governing rules adopted by a corporation or other association.






19. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.






20. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






21. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






22. The first bank to receive a check for payment.






23. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






24. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






25. An agreement by two or more persons to carry on - as co-owners - a business for profit.






26. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






27. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






28. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






29. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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30. 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 -






31. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






32. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






33. A contract that by law requires a specific form - such as being executed under seal - for its validity.






34. 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.






35. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






36. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






37. A type of limited liability partnership owned by family members or fiduciaries of family members.






38. A written - temporary insurance policy.






39. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






40. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






41. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






42. A trust that is created by will and therefore does not take effect until the death of the testator.






43. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






44. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






45. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






46. A state statute under which certain types of contracts must be in writing to be enforceable.






47. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






48. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






49. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






50. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.







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