A1. An automobile manufacturer makes two statements in advertising: "This car has six cylinders." And "this car will make you the envy of your neighbors." State whether these statements are deceptive advertising. Reasons?

B2. You are organizing a new business and your primary concern is to avoid the possibility that business liability may become a personal liability of the owner(s). What business entities will achieve your goal? State the reasons.

C 1. Two competing hardware stores agree to stop a third hardware store from entering the market by influencing government leaders, advertising campaigns and other means. Is this agreement a restraint of trade? Reasons?

D 2. You are the owner of a business and you recognize that there may be some potential for employment discrimination. State some of the proactive steps you can take to avoid discrimination liability

E 1. You own a growing business and need operating capital. You know that capital can be obtained through debt or equity. Explain the advantages and disadvantages of each method to raise operating capital.