Business law topic 2 Flashcards
What does Business Law include?
a) Only the legal status and obligations of entrepreneurs.
b) Commercial companies and contracts, trademarks, and competition protection.
c) Solely the tax and labor regulations affecting entrepreneurs.
d) Exclusively the international law governing trade between countries.
Answer: b) Commercial companies and contracts, trademarks, and competition protection.
Explanation: Business Law encompasses a broad array of subjects related to entrepreneurs, including the organization and operation of commercial companies, the nature of commercial contracts, trademarks and trade names, and the laws ensuring free and fair competition in the market.
Who is considered an entrepreneur under Business Law?
a) Any person who occasionally sells goods or services.
b) Individuals who habitually engage in commerce, per the Commercial Code.
c) Only those who own large multinational corporations.
d) Solely individuals working in the agricultural sector.
Answer: b) Individuals who habitually engage in commerce, per the Commercial Code.
Explanation: An entrepreneur is defined as a natural or legal person who, having legal capacity, engages habitually in commercial activities. This includes organizing and directing the means of production or exchange of goods and services for the market.
Which obligation is mandatory for all entrepreneurs?
a) To participate in the stock market.
b) To hire a certain number of employees.
c) To keep accounting and documentation of operations.
d) To engage exclusively in international trade.
Answer: c) To keep accounting and documentation of operations.
Explanation: Every entrepreneur, regardless of being an individual or a business entity, is required to maintain an accounting system that accurately documents their business operations, as per the Commercial Code.
What can the business as an object of legal traffic include?
a) Only physical assets like machinery and buildings.
b) Pre-existing legal relationships and economic valuations.
c) Solely the personal reputation of the entrepreneur.
d) Only the cash reserves held by the business.
Answer: b) Pre-existing legal relationships and economic valuations.
Explanation: When a business activity, including its set of assets and pre-existing legal relationships, is transferred or leased, it encompasses not just the physical assets but also the economic value of these relationships and valuations.
What is the legal capacity to act for natural person entrepreneurs contingent upon?
a) Legal age and no judicial incapacitation.
b) Holding a degree in business administration.
c) Membership in a professional business association.
d) Possessing a specific amount of capital.
Answer: a) Legal age and no judicial incapacitation.
Explanation: For natural persons to act as entrepreneurs, they must have reached the legal age of majority and not be subject to any judicial declarations of incapacitation. This ensures they have the legal capacity to engage in business activities.
Which is a class of entrepreneur according to Business Law?
a) Entrepreneurs who exclusively deal in electronic commerce.
b) Only those entrepreneurs operating in the service sector.
c) Natural or legal persons, classified by the size of the enterprise.
d) Entrepreneurs who have patented inventions.
Answer: c) Natural or legal persons, classified by the size of the enterprise.
Explanation: Entrepreneurs can be classified in several ways, including whether they are natural persons or legal entities and by the size of their operations, such as small, medium, or large enterprises.
What does the responsibility of entrepreneurs cover?
a) Obligations arising from contractual and non-contractual activities.
b) Only the activities that result in profit.
c) Exclusively their personal debts unrelated to the business.
d) Only the obligations stemming from their employee’s actions.
Answer: a) Obligations arising from contractual and non-contractual activities.
Explanation: Entrepreneurs are responsible for fulfilling obligations derived from both contractual relationships (agreements they enter into) and non-contractual activities (such as damages caused to others due to fault or negligence).
