Business Law 1 questions with complete solutions

Business Law 1 questions with complete solutions1. Which of the following best defines business law? a. legal responsibility for the occurrence of an event causing loss b. rules governing commercial relationships and the enforcement of rights c. rules governing procedures involved when one person sues another d. rules providing members of a society with established rights - correct answer B 2. Kamal is a computer technician who is about to enter into a one-year contract to provide IT services to a real estate agency. From Kamal's perspective, what is the most important function of this contract? a. to establish penalties for non-compliance b. to deal fairly with unexpected events c. to resolve conflicts d. to plan for the future and enforce expectations - correct answer D 3. Which of the following is NOT an objective of business law? a. protection of business ideas and tangible property b. ensuring losses are borne by those who cause them c. imposition of fines on those who breach contracts d. facilitating planning by ensuring compliance with commitments - correct answer C 4. A small group of entrepreneurs undertaking a business venture have agreed on the roles each will assume in the business, but they must now determine the form of business structure for the enterprise. What does the law facilitate by offering entrepreneurs different business structure options? a. choice of degree of exposure to liability for business risks b. rules that make written agreements between parties binding c. opportunities to maximize the protections that the law extends d. legal certainty for activities conducted in the commercial arena - correct answer A