Business Law Exam: Trivia Questions Quiz

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  • 1/9 Questions

    A corporation whose shareholders are limited to a small group of persons, often including only family members. The rights of the shareholders are usually restricted regarding the transfer of shares to others.

    • Close Corporation
    • Domestic Corporation
    • Alien Corporation
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About This Quiz


Do you know anything about business law? Do you believe you know how to pass this quiz? Business law is the body of law that applies to the rights of the people. Many different skills are imperative if you want to be a writer. This skill includes critical thinking, negotiation, analytical reasoning, research, and writing skills. If you are studying business law, then this is the quiz for you.

Business Law Exam: Trivia Questions Quiz - Quiz

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  • 2. 

    In a given state, a corporation that does business in, and is organized under the laws of, that state.

    • Alien Corporation

    • Domestic Corporation

    • Foreign Corporation

    Correct Answer
    A. Domestic Corporation
    Explanation
    A domestic corporation refers to a corporation that is incorporated and operates within a specific state. It is organized under the laws of that state and conducts its business activities within the same state. In contrast, an alien corporation is a corporation that is incorporated in one country but operates in another country. A foreign corporation, on the other hand, is a corporation that is incorporated in one state but operates in another state within the same country. Therefore, the correct answer in this case is domestic corporation as it accurately describes a corporation operating within its own state.

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  • 3. 

    In a given state, a corporation that does business in the state without being incorporated therein.

    • Domestic Corporation

    • Alien Corporation

    • Foreign Corporation

    Correct Answer
    A. Foreign Corporation
    Explanation
    A foreign corporation refers to a corporation that conducts business in a state without being incorporated in that state. This means that the corporation is incorporated in a different state or country but is operating and conducting business activities in the given state. It is important to differentiate between a domestic corporation, which is incorporated within the state it operates, and an alien corporation, which is incorporated in a different country and conducts business in the given state.

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  • 4. 

    The portion of a corporation's profits that have not been paid out as dividends to shareholders.

    • Retained earnings

    • Stock

    • Venture Capital

    Correct Answer
    A. Retained earnings
    Explanation
    Retained earnings refer to the portion of a corporation's profits that have not been distributed as dividends to shareholders. These earnings are typically reinvested back into the business for various purposes such as expansion, research and development, or debt reduction. Retained earnings are an important measure of a company's financial health and can be used to fund future growth opportunities or to strengthen the company's financial position.

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  • 5. 

    Classes of stock that have priority over common stock both as to payment of dividends and distribution of assets on the corporation's dissolution.

    • Preferred stock

    • Common Stock

    • Dividends

    Correct Answer
    A. Preferred stock
    Explanation
    Preferred stock is a class of stock that has priority over common stock in terms of payment of dividends and distribution of assets on the corporation's dissolution. This means that if the company declares dividends, preferred stockholders will be paid their dividends before common stockholders. Similarly, in the event of the company's liquidation, preferred stockholders will have a higher claim on the remaining assets compared to common stockholders. Preferred stock offers these preferential rights to investors in exchange for a potentially lower return compared to common stock.

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  • 6. 

    Capital ( funds and other assets ) provided by the professional, outside investors, to start new business ventures.

    • Private equity capital

    • Retained earnings

    • Venture Capital

    Correct Answer
    A. Venture Capital
    Explanation
    Venture capital refers to the capital or funds provided by professional investors to support the establishment and growth of new business ventures. Unlike private equity capital, which can be provided by a variety of sources including individuals and institutions, venture capital specifically comes from outside investors who specialize in funding startups and early-stage companies. Retained earnings, on the other hand, refer to the profits that a company reinvests into its own operations rather than distributing them to shareholders or investors. Therefore, the correct answer in this context is venture capital.

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  • 7. 

    A joint undertaking of a specific commercial enterprise by an association of persons. Normally not a legal entity and is treated as a partnership for federal income tax purposes.

    • Joint Stock Company

    • Joint Venture

    • Joint Corporation

    Correct Answer
    A. Joint Venture
    Explanation
    A joint venture refers to a collaboration between two or more individuals or businesses for a specific project or venture. It is not considered a separate legal entity and is treated similarly to a partnership for federal income tax purposes. In a joint venture, the participating parties pool their resources, expertise, and capital to achieve a common goal. This arrangement allows for risk sharing, cost sharing, and the opportunity to leverage each other's strengths and networks.

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  • 8. 

    An investment group of persons or firms brought together for the purpose of financing a project that they would not or could not undertake independently.

    • Syndicate

    • Syracate

    • Joint Venture

    Correct Answer
    A. Syndicate
    Explanation
    A syndicate refers to an investment group formed by individuals or firms who pool their resources to finance a project that they would not be able to undertake individually. This allows them to share the risks and costs associated with the project, as well as leverage their combined expertise and networks. By forming a syndicate, the members can access larger amounts of capital and take on more ambitious projects than they could on their own.

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  • 9. 

    A designation in the U.S. for a corporation formed in another country but doing business in the U.S.

    • Foreign Corporation

    • Domestic Corporation

    • Alien Corporation

    Correct Answer
    A. Alien Corporation
    Explanation
    An alien corporation is the correct answer because it refers to a designation in the U.S. for a corporation that is formed in another country but conducts business within the U.S. This term is used to distinguish foreign corporations from domestic corporations, which are companies formed and operating within the U.S. It is important to note that an alien corporation may still need to comply with certain U.S. laws and regulations in order to conduct business in the country.

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  • Mar 22, 2023
    Quiz Edited by
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  • Dec 14, 2010
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    Rgran949
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