1. Laws and government regulations affect almost all business activities.
a. True
b. False
ANSWER: True
2. Law consists of enforceable rules governing relationships among individuals and between
individuals and their society.
a. True
b. False
ANSWER: True
3. Many different laws may apply to a single business transaction.
a. True
b. False
ANSWER: True
4. Businesspersons are expected to make decisions that are ethically sound.
a. True
b. False
ANSWER: True
5. Being a small-business owner means that you will never have to take on the role of finance
manager, marketing manager or accountant.
a. True
b. False
ANSWER: False
6. Whether financial statements created by an accountant need to be verified for accuracy is not a
legal question.
, a. True
b. False
ANSWER: False
7. There are legal questions involved when considering ways to raise capital so a business can
grow.
a. True
b. False
ANSWER: True
8. There are legal questions involved when choosing an appropriate business organizational form.
a. True
b. False
ANSWER: True
9. A small business owner is likely to face legal questions when determining ways to reduce his
small business’s taxes.
a. True
b. False
ANSWER: True
10. In order to truly understand the law, it is important to understand the origins of the law.
a. True
b. False
ANSWER: True
11. Administrative law is a source of American law that is comprised of statutes.
a. True
, b. False
ANSWER: False
12. Statutes are laws enacted by Congress and the state legislatures and comprise one of the
sources of American law.
a. True
b. False
ANSWER: True
13. Constitutional law includes only the U.S. Constitution.
a. True
b. False
ANSWER: False
14. Whether a law is constitutional depends on its source.
a. True
b. False
ANSWER: False
15. The U.S. Constitution reserves to the federal government all powers not granted to the states.
a. True
b. False
ANSWER: False
16. Statutory law includes state statutes.
a. True
b. False
, ANSWER: False
17. Uniform laws apply in all states, including those in which the laws have not been adopted.
a. True
b. False
ANSWER: False
18. Statutory law does not include county ordinances.
a. True
b. False
ANSWER: False
19. The courts, in interpreting statutory law, may rely on the common law as a guide to what the
legislators intended.
a. True
b. False
ANSWER: True
20. No state has adopted the Uniform Commercial Code in its entirety.
a. True
b. False
ANSWER: False
21. A judge’s function is to make the law.
a. True
b. False
ANSWER: False
a. True
b. False
ANSWER: True
2. Law consists of enforceable rules governing relationships among individuals and between
individuals and their society.
a. True
b. False
ANSWER: True
3. Many different laws may apply to a single business transaction.
a. True
b. False
ANSWER: True
4. Businesspersons are expected to make decisions that are ethically sound.
a. True
b. False
ANSWER: True
5. Being a small-business owner means that you will never have to take on the role of finance
manager, marketing manager or accountant.
a. True
b. False
ANSWER: False
6. Whether financial statements created by an accountant need to be verified for accuracy is not a
legal question.
, a. True
b. False
ANSWER: False
7. There are legal questions involved when considering ways to raise capital so a business can
grow.
a. True
b. False
ANSWER: True
8. There are legal questions involved when choosing an appropriate business organizational form.
a. True
b. False
ANSWER: True
9. A small business owner is likely to face legal questions when determining ways to reduce his
small business’s taxes.
a. True
b. False
ANSWER: True
10. In order to truly understand the law, it is important to understand the origins of the law.
a. True
b. False
ANSWER: True
11. Administrative law is a source of American law that is comprised of statutes.
a. True
, b. False
ANSWER: False
12. Statutes are laws enacted by Congress and the state legislatures and comprise one of the
sources of American law.
a. True
b. False
ANSWER: True
13. Constitutional law includes only the U.S. Constitution.
a. True
b. False
ANSWER: False
14. Whether a law is constitutional depends on its source.
a. True
b. False
ANSWER: False
15. The U.S. Constitution reserves to the federal government all powers not granted to the states.
a. True
b. False
ANSWER: False
16. Statutory law includes state statutes.
a. True
b. False
, ANSWER: False
17. Uniform laws apply in all states, including those in which the laws have not been adopted.
a. True
b. False
ANSWER: False
18. Statutory law does not include county ordinances.
a. True
b. False
ANSWER: False
19. The courts, in interpreting statutory law, may rely on the common law as a guide to what the
legislators intended.
a. True
b. False
ANSWER: True
20. No state has adopted the Uniform Commercial Code in its entirety.
a. True
b. False
ANSWER: False
21. A judge’s function is to make the law.
a. True
b. False
ANSWER: False
