Business Services Business Services Legal and Compliance

Question 1

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

Accepted Answer

A legal contract requiring parties to keep specified information confidential

Answer

A contract preventing employees from taking vacation

Answer

A government filing for business registration

Answer

An agreement between two businesses to merge

Question 2

What does 'due diligence' mean in a business transaction?

Accepted Answer

Thoroughly investigating a company before completing an acquisition or agreement

Answer

Paying invoices on time

Answer

Reviewing employee performance annually

Answer

Filing quarterly tax returns

Question 3

What is a 'breach of contract' in business law?

Accepted Answer

When one party fails to fulfill their contractual obligations without legal justification

Answer

When a contract is signed by both parties

Answer

When a contract expires naturally

Answer

When a contract is renegotiated successfully

Question 4

What does 'intellectual property' (IP) include in business?

Accepted Answer

Creations of the mind such as patents, trademarks, copyrights, and trade secrets

Answer

Physical company assets like buildings and equipment

Answer

Employee personal data

Answer

Customer payment information

Question 5

What is 'regulatory compliance' for a business?

Accepted Answer

Adhering to laws, regulations, and industry standards relevant to the business

Answer

Following the company's internal dress code

Answer

Meeting monthly sales quotas

Answer

Attending industry conferences regularly

Question 6

What is a 'force majeure' clause in a contract?

Accepted Answer

A provision excusing a party from performance due to extraordinary events beyond their control

Answer

A clause requiring advance payment

Answer

A clause specifying dispute resolution methods

Answer

A penalty clause for late delivery