CBA Business Law & Regulatory Compliance Flashcards

Which federal agency is primarily responsible for enforcing securities laws that affect small businesses seeking outside investors?

Answer: Securities and Exchange Commission (SEC)

The SEC enforces federal securities laws, including registration requirements and disclosure rules that businesses must follow when offering securities to investors.

A sole proprietorship differs from an LLC primarily because the sole proprietor:

Answer: Has unlimited personal liability for business debts

Unlike LLC members, a sole proprietor has unlimited personal liability, meaning personal assets can be seized to satisfy business debts and judgments.

Under the Americans with Disabilities Act (ADA), which of the following businesses is generally required to provide reasonable accommodations?

Answer: Any business with at least 15 employees

Title I of the ADA applies to employers with 15 or more employees, requiring reasonable accommodations for qualified individuals with disabilities.

Which document establishes the internal governance rules for a corporation, including how meetings are conducted and officer roles?

Answer: Bylaws

Corporate bylaws serve as the internal rulebook governing how the corporation operates, including meeting procedures, voting rights, and officer responsibilities.

An employer who misclassifies a worker as an independent contractor instead of an employee may face liability for unpaid:

Answer: Payroll taxes, benefits, and overtime wages

Misclassification exposes employers to back payroll taxes (FICA), overtime under FLSA, and benefits that employees would have been entitled to receive.

Which intellectual property protection is most appropriate for a new invention that provides a unique technical solution to a problem?

Answer: Utility patent

A utility patent protects new inventions and functional discoveries, granting exclusive rights to make, use, and sell the invention for up to 20 years.