Business Law FBLA Question and Answer [2026] |
UPDATED ACTUAL Exam | Ultimate Study Guide
• Principal -✓✓ Person who authorizes another in an agency relationship
• E-contract -✓✓ Any contract formed electronically such as over the internet
• Buyers select and agree to buy the goods @ sellers store -✓✓ When payment for
goods take place at a later date, the transfer of title takes place when
• The principal & 3rd party -✓✓ Any agreement reached by the representative in
an agency relationship binds
• Bona-fide competition -✓✓ A legitimate defense to wrongful interference
• Agent -✓✓ required to negotiate on behalf of the principal or bring him or her
and third parties into contractual relationship.
• Independent contractor -✓✓ is a natural person, business, or corporation that
provides goods or services to another entity under terms specified in a contract or
within a verbal agreement. Independent contractors are usually paid on a freelance
basis. Contractors often work through a limited company or franchise, which they
themselves own, or may work through an umbrella company.
• Real estate broker/agent -✓✓ a person who acts as an intermediary between
sellers and buyers of real estate/real property and attempts to find sellers who wish
to sell and buyers who wish to buy.
, • Bailment -✓✓ describes a legal relationship in common law where physical
possession of personal property, or a chattel, is transferred from one person (the
'bailor') to another person (the 'bailee') who subsequently has possession of the
property. It arises when a person gives property to someone else for safekeeping,
and is a cause of action independent of contract or tort.
• Trustee -✓✓ is a legal term which, in its broadest sense, can refer to any person
who holds property, authority, or a position of trust or responsibility for the benefit
of another, also can be a person who is allowed to do certain tasks but not able to
gain income.
• Sole proprietorships -✓✓ The vast majority of small businesses start out like this.
These firms are owned by one person, usually the individual who has day-to-day
responsibility for running the business. They own all the assets of the business and
the profits generated by it. They also assume complete responsibility for any of its
liabilities or debts.
• Partnership -✓✓ two or more people share ownership of a single business. Like
proprietorships, the law does not distinguish between the business and its owners.
They should have a legal agreement that sets forth how decisions will be made,
profits will be shared, disputes will be resolved. Many split up at crisis times
unless there is defined process. They must decide how much time and capital each
will contribute, etc.
• Corporation -✓✓ chartered by the state in which it is headquartered, is considered
by law to be a unique entity, separate and apart from those who own it. It can be
taxed; it can be sued; it can enter into contractual agreements. The owners are its
shareholders. The shareholders elect a board of directors to oversee the major
policies and decisions. It has a life of its own and does not dissolve when
ownership changes.
UPDATED ACTUAL Exam | Ultimate Study Guide
• Principal -✓✓ Person who authorizes another in an agency relationship
• E-contract -✓✓ Any contract formed electronically such as over the internet
• Buyers select and agree to buy the goods @ sellers store -✓✓ When payment for
goods take place at a later date, the transfer of title takes place when
• The principal & 3rd party -✓✓ Any agreement reached by the representative in
an agency relationship binds
• Bona-fide competition -✓✓ A legitimate defense to wrongful interference
• Agent -✓✓ required to negotiate on behalf of the principal or bring him or her
and third parties into contractual relationship.
• Independent contractor -✓✓ is a natural person, business, or corporation that
provides goods or services to another entity under terms specified in a contract or
within a verbal agreement. Independent contractors are usually paid on a freelance
basis. Contractors often work through a limited company or franchise, which they
themselves own, or may work through an umbrella company.
• Real estate broker/agent -✓✓ a person who acts as an intermediary between
sellers and buyers of real estate/real property and attempts to find sellers who wish
to sell and buyers who wish to buy.
, • Bailment -✓✓ describes a legal relationship in common law where physical
possession of personal property, or a chattel, is transferred from one person (the
'bailor') to another person (the 'bailee') who subsequently has possession of the
property. It arises when a person gives property to someone else for safekeeping,
and is a cause of action independent of contract or tort.
• Trustee -✓✓ is a legal term which, in its broadest sense, can refer to any person
who holds property, authority, or a position of trust or responsibility for the benefit
of another, also can be a person who is allowed to do certain tasks but not able to
gain income.
• Sole proprietorships -✓✓ The vast majority of small businesses start out like this.
These firms are owned by one person, usually the individual who has day-to-day
responsibility for running the business. They own all the assets of the business and
the profits generated by it. They also assume complete responsibility for any of its
liabilities or debts.
• Partnership -✓✓ two or more people share ownership of a single business. Like
proprietorships, the law does not distinguish between the business and its owners.
They should have a legal agreement that sets forth how decisions will be made,
profits will be shared, disputes will be resolved. Many split up at crisis times
unless there is defined process. They must decide how much time and capital each
will contribute, etc.
• Corporation -✓✓ chartered by the state in which it is headquartered, is considered
by law to be a unique entity, separate and apart from those who own it. It can be
taxed; it can be sued; it can enter into contractual agreements. The owners are its
shareholders. The shareholders elect a board of directors to oversee the major
policies and decisions. It has a life of its own and does not dissolve when
ownership changes.
