Legal Risk Management Quiz

What are legal risks?

• Events that can result in harm, loss, or affect the achievement of objectives

• Errors or breaches due to processes or procedures

• When businesses fail to comply with regulations or contractual terms

• Opportunities for business growth

What are the causes of legal risks?

• Events that can result in harm, loss, or affect the achievement of objectives

• Errors or breaches due to processes or procedures

• When businesses fail to comply with regulations or contractual terms

• Opportunities for business growth

Which type of legal risk requires following policies and procedures?

• Regulatory

• Recordkeeping and reporting

• Operational compliance

• Contractual

What is one way a party can breach a contract?

• Delivering goods or services on time

• Paying for goods or services

• Meeting quality standards

• Failing to deliver the goods or services agreed to

What must employers be aware of to ensure fair treatment of employees?

• International trade laws

• State and federal employment laws

• Environmental regulations

• Tax laws

Which of the following is considered an intangible asset of a company?

• Equipment

• Trademark

• Inventory

• Real estate

What is the consequence for a business if a product they sell causes harm to a customer?

• The business could be held liable and sued.

• The business could receive a tax break.

• The business could gain more customers.

• The business could receive a government grant.

What must businesses do before selling products to the public to avoid legal issues?

• Increase prices

• Do their due diligence

• Advertise extensively

• Offer discounts

What are the consequences for businesses that violate environmental laws in Australia?

• They receive a warning.

• They face hefty penalties and possibly imprisonment.

• They are required to attend a training session.

• They are given a tax break.

What must businesses do to ensure compliance with tax laws?

• Ignore all income and expenses.

• Track and record all income and expenses and file annual tax returns.

• Only record expenses.

• File tax returns every five years.