Test Bank for Business Law Text and Exercises 9th.pdf

1. Law consists of enforceable rules governing individuals and their society. a. True b. False ANSWER: True 2. Laws and government regulations affect almost all business activities. a. True b. False ANSWER: True 3. Business people do not need to understand court processes because if they are sued, the lawyers will know those rules. a. True b. False ANSWER: False 4. The study of business law does not involve an ethical dimension. a. True b. False ANSWER: False 5. Being a small-business owner means that you will never have to take on the role of a human resources manager. a. True b. False ANSWER: False 6. Raising additional capital so that a business can grow is a strategy problem and not a legal issue. a. True b. False ANSWER: False 7. Small business owners are company leaders who do not have to deal with management issues and understand the detailed laws. a. True b. False ANSWER: False 8. Precedents are court decisions that guide future legal decisions to create stability and predictability. a. True b. False ANSWER: True 9. A small business owner is likely to face legal questions when determining ways to reduce business taxes. a. True b. False ANSWER: True Page 3 10. Administrative agencies like the Food and Drug Administration make rules and regulations called administrative law. a. True b. False ANSWER: True