Business Degree Business Law 3

Question 1

What is an 'LLC' (Limited Liability Company)?

Accepted Answer

A business structure combining the liability protection of a corporation with the tax treatment of a partnership

Answer

An LLC is a flexible business entity that provides owners (members) with limited personal liability while allowing pass-through taxation like a partnership.

Question 2

What is 'antitrust law' designed to prevent?

Accepted Answer

Monopolistic practices and anti-competitive behavior that harm consumers

Answer

Antitrust laws promote fair competition by prohibiting monopolies, price fixing, and other anti-competitive practices that harm consumers and markets.

Question 3

What is a 'non-disclosure agreement' (NDA)?

Accepted Answer

A legal contract preventing parties from sharing confidential information

Answer

An NDA is a legally binding contract in which parties agree to keep shared confidential information secret and not disclose it to third parties.

Question 4

What does the Americans with Disabilities Act (ADA) require of US employers with 15 or more employees?

Accepted Answer

Providing reasonable accommodations for qualified employees with disabilities

Answer

The ADA requires covered employers to provide reasonable accommodations to qualified individuals with disabilities unless it causes undue hardship.

Question 5

What is 'promissory estoppel' in contract law?

Accepted Answer

A legal doctrine that enforces a promise even without formal consideration if one party reasonably relied on it

Answer

Promissory estoppel prevents a party from going back on a promise when the other party has reasonably relied on that promise to their detriment.

Business Degree Practice Test

Business Degree Practice Test

Business Degree Business Law 3