Federal administrative agencies get their power and legal authority From Congress delegated by way of enabling legislation b rom the issuance of an executive order by the president e from the United States Constifution. d on the basis of legal precedent. s. Policy decisions made at the highest levels of management of a corporation are the responsibility of the a. board of directors d shareholders 9The law of products liability is concerned with a. false advertising of the quality of a product b. breaches of contract by the manufacturers of products. c. injuries or illness suffered by the users or consumers of defoctive products d. infringement on a trademark associated with a product 10. Telecom, Inc. issues bonds. Bonds may also be referred to as b. debt securities c. equity securities 11. In a sole proprietorship, the liability of the owner of the assets of the basiness is limited to the extent of his or her original investment. b. limited to the extent of his or her original investment plus any subsequent capital expenditures c. limited by state statute and varies from state to state. d. Unlimited 12. A distribution of the net earnings of a corporation to shareholders is a. a liquidation b. taxable to the corporation c. a dividend d. required annually by law 13. Which of the following statements regarding franchises is not accurate? The franchisee pays royalties for the use of the company's name and b. The franchisee contributes to the cost of advertising the products of the franchised business. e. The fanchisor usually invests capital in the business and acquires a percentage of the assets of the business in order to maintain control The franchisor provides the franchisee with training and operational support. d. 14. The Federal Emergency Management Agency (FEMA) discovered that a small company is violating FEMA regulation. If this situation is resolved like most such regulatory matters, the outcome will be a. a negotiated settlement b. a hearing and possibly a fine. c a hearing and possibly an appeal to a higher court. d a trial and possibly the dissolution of the business