Business Services Business Services Legal and Compliance 1

Question 1

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

Accepted Answer

A legal contract requiring parties to keep specified information confidential

Answer

An NDA (non-disclosure agreement) is a legal contract that binds parties to keep certain information confidential and not share it with unauthorized third parties.

Question 2

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

Accepted Answer

Thoroughly investigating a company before completing an acquisition or agreement

Answer

Due diligence is the comprehensive appraisal of a business or investment opportunity to verify facts, assess risks, and confirm financial and legal standing before a deal closes.

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

A breach of contract occurs when one party fails to perform their obligations under a valid contract without a legally acceptable excuse.

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

Intellectual property covers intangible creations of the mind that can be legally protected, including inventions (patents), brand names (trademarks), creative works (copyrights), and proprietary methods (trade secrets).

Question 5

What is 'regulatory compliance' for a business?

Accepted Answer

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

Answer

Regulatory compliance means a business follows all applicable laws, regulations, and rules set by government authorities and industry bodies relevant to its operations.

Business Services Practice Test

Business Services Practice Test

Business Services Business Services Legal and Compliance 1