Quiz

Question 1

Who owns copyright when first created?

Answer 1

By default the person who created the copyright material. However, if an agreement is signed then it gets assigned e.g. IP agreement.

Question 2

Legal entity type recommended for most people starting a business, which has limited liability?

Answer 2

A company – limited liability means they’re not personally liable.

Question 3

Type of information that privacy law regulates?

Answer 3

Personal information, information about you.

Question 4

Who is legally responsible for how a company is run day to day?

Answer 4

Board of directors.

Question 5

Type of agreement signed with a professional services provider?

Answer 5

Services agreement – A business that provides services and advice is required to sign a services agreement which outlines T&Cs, milestones and cost etc. e.g. lawyer.

Question 6

Types of insurances a new business should consider?

Answer 6

All types of insurance relevant to that business. E.g. Workers compensation, cyber, professional indemnity etc.

Question 7

Types of intellectual property?

Answer 7

Registered patents, registered trademarks and registered designs – Registered domain names are not types of IP.

Question 8

When the best time is to create privacy policy & privacy notice?

Answer 8

When the business is first created.

Question 9

When should terms and conditions be on the website?

Answer 9

As soon as the website is published

Question 10

Type of agreement someone who is only a CEO would sign?

Answer 10

Employment agreement however, if the CEO has shares then they’d also sign a shareholders agreement.

Question 11

How to protect a secret food recipe?

Answer 11

Trade secret - an intellectual property right on confidential information.

Question 12

Key consideration if your business is providing professional services?

Answer 12

Occupational licensing - is government regulation of the conditions under which someone can practice an occupation. In Australia, there are a large number of licenced occupations, for example, doctors, solicitors, electricians, plumbers and hairdressers.

Question 13

Best way to protect confidential information?

Answer 13

NDA/ Non-disclosure agreement/ Confidentiality agreement

Question 14

Legal consideration unique to a food business?

Answer 14

Food safety regulations

Question 15

Best way to protect a business’ brand?

Answer 15

Trademark registration - is a type of intellectual property (IP) right that protects a business’s unique brand, products or services.

Question 16

Most important consideration when signing a property lease?

Answer 16

Whether the property can be used in the way the business intended to use it.

Question 17

Who owns a company?

Answer 17

Shareholders

Question 18

Standard way to receive investment in a company?

Answer 18

Sell shares in the company to investors.

Question 19

What a cash flow statement is?

Answer 19

Summaries CF inflows and outflows from operating, investing and financial activities over a specific period.

Question 20

What a balance sheet is?

Answer 20

A document that provides an overview of a company’s assets, liabilities and shareholder/owners’ equity at a specific point in time.

Question 21

What a profit and loss statement is?

Answer 21

Also known as an income statement is a financial statement that shows a company’s revenue and expenses over a specific period of time.

Question 22

Types of insurances

Answer 22

• Professional indemnity insurance - provide cover in the event of a breach of contract, or a mistake from professional services provided, such as a mistake made in the course of providing professional services or advice, or recommendations to a client.
• Product liability insurance - designed for businesses who are involved in the production, supply of sale of products to members of the public.
• Cyber liability insurance - coverage options to help protect the company from data breaches and other cyber security issues.
• Workers compensation insurance - covers your workers when they are working for your trade or business, and/or while acting under your instructions.
• Directors and offices insurance – liability coverage for company managers to protect them from claims which may arise from decisions and actions taken as part of their duties.

Question 23

Types of agreements/ documents that founders should sign?

Answer 23

IP Assignment, shareholder agreement, NDA/ Non-disclosure agreement.