MIE 305 EXAM 1 EXAM WITH CORRECT
QUESTIONS AND ANSWERS 2025
Law - CORRECT-ANSWERSa body of enforceable rules governing relationships among
individuals and between individuals and their society
-establish rights, duties, and privileges that are consistent w/ the values & beliefs of a society or
its ruling group
role of law in small business - CORRECT-ANSWERS1. Business organization (type of entity,
how much personal liability?)
2. Taxation (how it will be taxed, how to reduce taxes)
3. Intellectual property (any patents that need to be protected? what steps should the firm
take)
4. Administrative law (what types of gov regulations apply to business/how to comply)
,5. Employment (employee manual? explicitly inform employees of their rights?)
6. Contracts, Sales, and Leases (will the firm be entering into contracts with others?)
7. Accounting (do the financial statements need to be verified for accuracy?)
8. Finances (appropriate and legal ways to raise additional capital)
Liability - CORRECT-ANSWERSthe state of being legally responsible (liable) for something,
such as debt or obligation
Breach - CORRECT-ANSWERSfailure to perform a legal obligation
Sources that establish American Law - CORRECT-ANSWERSThe constitution, statues or laws
passed by congress or state legislatures, regulations created by admin agencies, case law
,Primary Sources of American Law - CORRECT-ANSWERSa document that establishes the law
on a particular issue, such as a constitution, a statue, an administrative rule, or a court decision
Secondary Source of American Law - CORRECT-ANSWERSa publication that summarizes or
interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review
Constitutional Law - CORRECT-ANSWERSThe body of law derived from the U.S. constitution
and the constitutions of various states
Statutory Law - CORRECT-ANSWERSThe body of law enacted by legislative bodies (as
opposed to constitutional law, admin law, or case law)
, Citation - CORRECT-ANSWERSa reference to a publication in which a legal authority--such as a
statue or a court decision-- or other source can be found
ordinance - CORRECT-ANSWERSa regulation enacted by a city or county legislative body that
becomes part of that state's statutory law
Uniform Law - CORRECT-ANSWERSa model law developed by the National conference of
Commissioners on Uniform State Laws for the states to consider enacting into statue
Admin Law - CORRECT-ANSWERSconsists of the rules, orders, and decisions of administrative
agencies
QUESTIONS AND ANSWERS 2025
Law - CORRECT-ANSWERSa body of enforceable rules governing relationships among
individuals and between individuals and their society
-establish rights, duties, and privileges that are consistent w/ the values & beliefs of a society or
its ruling group
role of law in small business - CORRECT-ANSWERS1. Business organization (type of entity,
how much personal liability?)
2. Taxation (how it will be taxed, how to reduce taxes)
3. Intellectual property (any patents that need to be protected? what steps should the firm
take)
4. Administrative law (what types of gov regulations apply to business/how to comply)
,5. Employment (employee manual? explicitly inform employees of their rights?)
6. Contracts, Sales, and Leases (will the firm be entering into contracts with others?)
7. Accounting (do the financial statements need to be verified for accuracy?)
8. Finances (appropriate and legal ways to raise additional capital)
Liability - CORRECT-ANSWERSthe state of being legally responsible (liable) for something,
such as debt or obligation
Breach - CORRECT-ANSWERSfailure to perform a legal obligation
Sources that establish American Law - CORRECT-ANSWERSThe constitution, statues or laws
passed by congress or state legislatures, regulations created by admin agencies, case law
,Primary Sources of American Law - CORRECT-ANSWERSa document that establishes the law
on a particular issue, such as a constitution, a statue, an administrative rule, or a court decision
Secondary Source of American Law - CORRECT-ANSWERSa publication that summarizes or
interprets the law, such as a legal encyclopedia, a legal treatise, or an article in a law review
Constitutional Law - CORRECT-ANSWERSThe body of law derived from the U.S. constitution
and the constitutions of various states
Statutory Law - CORRECT-ANSWERSThe body of law enacted by legislative bodies (as
opposed to constitutional law, admin law, or case law)
, Citation - CORRECT-ANSWERSa reference to a publication in which a legal authority--such as a
statue or a court decision-- or other source can be found
ordinance - CORRECT-ANSWERSa regulation enacted by a city or county legislative body that
becomes part of that state's statutory law
Uniform Law - CORRECT-ANSWERSa model law developed by the National conference of
Commissioners on Uniform State Laws for the states to consider enacting into statue
Admin Law - CORRECT-ANSWERSconsists of the rules, orders, and decisions of administrative
agencies
