A. What does it mean when two parties have a legally binding contract?

A) Either party will be prosecuted if a breach in contract occurs.

B) Both parties have a written document that binds them.

C) Both parties enter an agreement, bound by conditions and enforceable by law.

D) The offeror can withdraw at any time for any or no reason.

B. The difference between an LLC and a traditional "C" corporation is

A) LLC's have a more flexible management structure and pass-through taxation to the personal tax return, this is not true of "C" corporations.

B) LLC's have a formal management structure and taxation is at the business level, "C" corporations are the opposite.

C) LLC's protect owners (shareholders) from liability, this is not true of "C" corporations.

D) LLC's have no restriction on the number of owners (shareholders), "C" corporations have restrictions.

E) LLC's can retain and accumulate earnings from year to year, this is not true of "C" corporations.

C. A construction company's office trailer which gets moved from job site to job site is an example of :*

A) real property.

B) bailment.

C) intangible personal property.

D) personal property.

E) fixture.

D. A type of law associated more with state law than federal law would be...

A) tort

B) bankruptcy

C) maritime

D) international

E) patent

E. When lack of capacity has made a contract non-binding it is called:

A) overdue

B) contractual pressure

C) illegal

D) voidable

E) voluntary