Sharing stored music files through the use of peer-to-peer (P2P) networking most typically constitutes:

a. copyright infringement. b. patent infringement. c. theft of trade secrets. d. trademark infringement. 2. If an inventor designs a new, novel, and very useful device does not want anyone else to manufacture the device he designed without her permission, the most logical course of action would be for the inventor to:

a. create and register a trademark for the design. b. acquire a patent for the design. c. register the design as a copyright. 3. Which of the following statements is most accurate? a. A trademark may be comprised of a visual design (i.e., logo) and a trade name. b. A trademark may be a visual design (i.e., logo). c. Both of the above statements are accurate. 4. Jones operates an Internet-based website business under the name, Websites R Us. Which of the following statements is most accurate?

a. Toys R Us, a well-known toy store chain, has a viable claim that Jones trade name constitutes dilution of its trademark. b. Toys R Us only viable claim is cybersquatting because Jones business is Internet-based. c. Toys R Us has no viable claim because consumers could not reasonably conclude that Jones sells toys.

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5. Moe, Larry and Curly are partners in Stooge Comics, a general partnership. The business fails. After Stooge Comics sells all its assets and uses the money to pay its creditors, the creditors are still owed $100,000. Which of the following statements best describes the situation? a. Moe, Larry and Curly are not personally liable for the debt. b. Each Moe, Larry and Curly could be personally liable for the entire $100,000. c. Each Moe, Larry and Curly are personally liable for only one-third of the $100,000. d. Moe, Larry and Curly are not personally liable for the debt unless they personally guaranteed the debt.

6. The United States Supreme Court case that considered the question of whether a business can refuse to create a product that expresses a view that is contrary to the religious principles of the business owner is:

a. Burwell v. Hobby Lobby. b. Citizens United v. Federal Election Commission. c. Masterpiece Cakeshop v. Colorado Civil Rights Commission. 7. The United States Supreme Court case that considered the question of whether a corporation can refuse to provide its employees with health insurance for procedures that are contrary to the religious principles of the corporations owners is: a. Burwell v. Hobby Lobby. b. Citizens United v. Federal Election Commission. c. Masterpiece Cakeshop v. Colorado Civil Rights Commission. 8. Which of the following describes the key reason(s) large corporations tend to incorporate or reincorporate in Delaware? a. Tax advantages. b. A concentration of local residents who are highly skilled in business management. c. Flexible statute, well-developed case law, and a responsive state legislature. 9. Which of the following statements is most accurate? a. The owner(s) of a limited liability company is referred to as a member---not a shareholder. b. Limited liability companies are offer more flexible alternatives for structuring ownership and management than corporations. c. Both of the above statements are true.

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10. Most corporations in the United States are: a. Privately held. b. Publicly traded. 11. Registering an Internet domain name that contains a famous name with the sole intent to profit from the transfer of the domain to the owner of the famous name can best be described as:

a. Cyberbullying. b. Cybersquatting. c. Free speech. d. Wiki-leaking. 12. Ralph and Alice have created a recipe for the tastiest appetizer spread. They dont want anyone else to ever use the recipe. Their best course of action would be to: a. Create and register a trademark for the recipe. b. Acquire a patent for the recipe. c. Register the recipe as a copyright. d. Keep the recipe a trade secret. 13. Which of the following statements is most accurate? a. A musical work will be deemed to have infringed on a prior musical work if the newer musical work is similar in any way to the prior musical work. b. A musical work will be deemed to have infringed on a prior musical work only if the newer musical work is exactly the same as the prior musical work. c. Neither a nor b above is accurate. 14. A franchise relationship is best described as: a. A relationship that assures franchisees the maximum amount of autonomy and flexibility in her business operations. b. A relationship where the franchisee sacrifices autonomy and flexibility in exchange for the benefit of brand recognition. c. A simple and low-cost alternative to starting a business. 15. The phrase, initial public offering (IPO) refers to the process where: a. A privately held corporation becomes a publicly traded corporation. b. A limited liability company becomes a publicly traded corporation. c. A general partnership becomes a limited liability partnership.

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16. A Ponzi Scheme is best described as: a. A fraudulent investing scam that generates returns for early investors by distributing funds received from new investors. b. The knowing concealment of product defects. c. The intentional false reporting of test results to regulatory authorities. 17. The most notable unethical conduct of the Enron Corporation involved: a. The knowing concealment of product defects. b. An accounting fraud designed to overstate the companys financial performance. c. The intentional false reporting of test results to regulatory authorities. 18. The most notable unethical conduct of Madoff Investment Securities involved: a. An accounting fraud designed to overstate the company's financial performance. b. The intentional false reporting of test results to regulatory authorities. c. The misappropriation of client funds. 19. The unethical conduct that contributed to the Financial Collapse of 2008 can best be described as:

a. An accounting fraud designed to overstate the industrys financial performance. b. A systemic failure by those in the financial industry to act in good faith because they believed someone other than themselves would bear the consequences of their behavior. c. The misappropriation of client funds. 20. Most businesses in the United States today are operated as: a. Corporations. b. Limited liability companies. c. Sole proprietorships.