TEST BANK
CANADIAN BUSINESS LAW TODAY
2ND EDITION (CANADIAN EDITION)
CHAPTER NO. 01: BUSINESS LAW
TRUE/FALSE
1. Laws are the rules of conduct that protect the rights of individuals and businesses.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
2. In the business world, there are laws to protect businesses from harm.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
3. A privacy policy is a list of rules of conduct for employees relating to the creation, usage, control, and
maintenance of personal information.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
4. Businesses must follow the guidelines of the Personal Information Protection and Electronic
Documents Act (PIPEDA), when collecting and using personal information from their customers.
a) True
b) False
,References
True / False Difficulty: Medium Learning Objective: 01-01 understand the law's role in society.
5. PIPEDA dictates that a business may only use the personal information it collects solely for the
purpose it collects it
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the
law's role in society.
6. A business need only obtain consent once for the personal information it collects.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-01 understand the
law’s role in society.
7. When drafting a privacy policy, it is important to include what information is being collected and
how it is being collected.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-01 understand the law’s
role in society.
8. Business law encompasses all the laws that a business requires to form and run a business.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand
how the law plays a part in business.
,9. Business laws are in place to protect the business, the owner, and the public.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 understand
How the law plays a part in business.
10. Laws guide the businessperson in the proper and lawful way to conduct the business.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 understand how
The law plays a part in business.
11. Businesses must retain documents or run the risk of losing a lawsuit if they are sued
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand how the
Law plays a part in business
12. Businesses need not retain documentation, in any case.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand how the law
plays a part in business.
, 13. Risk management allows a business to understand and assess risks associated with doing business
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-03 understand the importance of
protecting a business with risk management.
14. Good risk management may allow a business to avoid legal consequences.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-03 Understand the importance of
protecting a business with risk management.
15. Business ethics refers to the moral decisions made by the stakeholders of a business.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-04 Identify how ethics plays a
role in law and in business
16. How to manage a conflict of interest with an employee is not an example of an ethical decision.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-04 Identify how ethics plays
a role in law and in business.
CANADIAN BUSINESS LAW TODAY
2ND EDITION (CANADIAN EDITION)
CHAPTER NO. 01: BUSINESS LAW
TRUE/FALSE
1. Laws are the rules of conduct that protect the rights of individuals and businesses.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
2. In the business world, there are laws to protect businesses from harm.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
3. A privacy policy is a list of rules of conduct for employees relating to the creation, usage, control, and
maintenance of personal information.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the law's role in society.
4. Businesses must follow the guidelines of the Personal Information Protection and Electronic
Documents Act (PIPEDA), when collecting and using personal information from their customers.
a) True
b) False
,References
True / False Difficulty: Medium Learning Objective: 01-01 understand the law's role in society.
5. PIPEDA dictates that a business may only use the personal information it collects solely for the
purpose it collects it
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-01 understand the
law's role in society.
6. A business need only obtain consent once for the personal information it collects.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-01 understand the
law’s role in society.
7. When drafting a privacy policy, it is important to include what information is being collected and
how it is being collected.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-01 understand the law’s
role in society.
8. Business law encompasses all the laws that a business requires to form and run a business.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand
how the law plays a part in business.
,9. Business laws are in place to protect the business, the owner, and the public.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 understand
How the law plays a part in business.
10. Laws guide the businessperson in the proper and lawful way to conduct the business.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 understand how
The law plays a part in business.
11. Businesses must retain documents or run the risk of losing a lawsuit if they are sued
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand how the
Law plays a part in business
12. Businesses need not retain documentation, in any case.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-02 Understand how the law
plays a part in business.
, 13. Risk management allows a business to understand and assess risks associated with doing business
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-03 understand the importance of
protecting a business with risk management.
14. Good risk management may allow a business to avoid legal consequences.
a) True
b) False
References
True / False Difficulty: Easy Learning Objective: 01-03 Understand the importance of
protecting a business with risk management.
15. Business ethics refers to the moral decisions made by the stakeholders of a business.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-04 Identify how ethics plays a
role in law and in business
16. How to manage a conflict of interest with an employee is not an example of an ethical decision.
a) True
b) False
References
True / False Difficulty: Medium Learning Objective: 01-04 Identify how ethics plays
a role in law and in business.
