LEG 100 STRAYER UNIVERSITY Business Law LEG Milestone 1 FINAL EXAM 1. 100% USEFUL Study Guide

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Select the true statement about the relationship between law, ethics, and business. Abiding by the law is sufficient for businesses to earn a moral reputation. What is ethical in business is not nec... essarily required by law. It is impossible for a business to behave unethically if it follows the law. The law ensures ethical conduct in most areas of business. CONCEPT What Is Ethics? 2 Why is an LLC an attractive form of business organization for many new companies? Because neither LLCs nor their members must pay taxes on earnings Because, although they are more complicated to manage than corporations, they provide greater protection from risk Because it is a relatively simple way of establishing and operating a business while limiting the risk taken by its members Because lenders are particularly willing to lend money to LLCs, since they are a very stable type of business CONCEPT Limited Liability Entities 3 Select the example in which a corporation is making use of a safe harbor provision. A corporation that operates a chain of restaurants establishes an ethics hotline so that employees can report legal or company policy violations to the corporate office to reduce liability. A corporation that hosts user-uploaded videos online reports a copyright infringement to federal authorities and removes the copyrighted video from its website in order to reduce liability. [Show More]

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