BUSINESS LAW FBLA UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
●● Common Law
Answer: Laws developed through court decisions and precedents.
●● Administrative Law
Answer: Rules and regulations made by government agencies.
●● Case Law
Answer: Judicial interpretations of statutes and legal principles.
●● Stare Decisis
Answer: Doctrine that courts follow established precedents.
●● U.S. Constitution
Answer: Supreme law of the land; all laws must comply with it.
●● Small Claims Court
Answer: Court for minor monetary disputes, usually without a jury.
,●● Sole Proprietorship
Answer: Business owned by one person with unlimited personal
liability.
●● General Partnership
Answer: Business with two or more owners who share liability and
management.
●● Limited Liability Company (LLC)
Answer: Business structure with limited liability and pass-through
taxation.
●● Corporation
Answer: Separate legal entity owned by shareholders; limited liability.
●● Articles of Incorporation
Answer: Document that legally creates a corporation.
●● Corporate Bylaws
Answer: Rules for managing the internal operations of a corporation.
●● C Corporation Disadvantage
, Answer: Subject to double taxation of income.
●● Valid Contract
Answer: Requires offer, acceptance, consideration, legal capacity, and
lawful purpose.
●● Offeror
Answer: Person making the contract offer.
●● Offeree
Answer: Person receiving the contract offer.
●● Bilateral Contract
Answer: Both parties make promises to each other.
●● Unilateral Contract
Answer: One party promises to perform if the other party acts.
●● Express Contract
Answer: Terms are stated clearly in words (written or spoken).
●● Implied Contract
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
●● Common Law
Answer: Laws developed through court decisions and precedents.
●● Administrative Law
Answer: Rules and regulations made by government agencies.
●● Case Law
Answer: Judicial interpretations of statutes and legal principles.
●● Stare Decisis
Answer: Doctrine that courts follow established precedents.
●● U.S. Constitution
Answer: Supreme law of the land; all laws must comply with it.
●● Small Claims Court
Answer: Court for minor monetary disputes, usually without a jury.
,●● Sole Proprietorship
Answer: Business owned by one person with unlimited personal
liability.
●● General Partnership
Answer: Business with two or more owners who share liability and
management.
●● Limited Liability Company (LLC)
Answer: Business structure with limited liability and pass-through
taxation.
●● Corporation
Answer: Separate legal entity owned by shareholders; limited liability.
●● Articles of Incorporation
Answer: Document that legally creates a corporation.
●● Corporate Bylaws
Answer: Rules for managing the internal operations of a corporation.
●● C Corporation Disadvantage
, Answer: Subject to double taxation of income.
●● Valid Contract
Answer: Requires offer, acceptance, consideration, legal capacity, and
lawful purpose.
●● Offeror
Answer: Person making the contract offer.
●● Offeree
Answer: Person receiving the contract offer.
●● Bilateral Contract
Answer: Both parties make promises to each other.
●● Unilateral Contract
Answer: One party promises to perform if the other party acts.
●● Express Contract
Answer: Terms are stated clearly in words (written or spoken).
●● Implied Contract
