Most Asked Commercial Law Interview Questions and Answers
Commercial Law Interview Questions and Answers most commonly asked for Experienced PDF, Freshers candidates for Employment.
What does involved in a corporate merger?
Like most corporate law, mergers are regulated at the state level. While these laws vary by jurisdiction, many aspects of the merger process are the same across the nation. Generally, the board of directors for each entity must initially approve a resolution adopting a plan of merger that specifies the names of the entities involved, the name of the proposed merged company, the manner of converting shares of both entities, and any other legal provisions to which the corporations agree.
What can a creditor do to collect a debt?
A creditor may commence a lawsuit and obtain a judgment against the debtor. In addition, a creditor may repossess any collateral used as security for the debt and/or garnish the debtor’s wages.
What business licenses does a small business need?
The following are just some of the business licenses/permits that a small business might need: Doing Business As (DBA) Registration (usually filed at the county level), City and/or County Business License, Fire Department Permit, Sign Permit, Health Department License, and Liquor, Wine, and Beer Licenses.
What actions and disclosures must a collection agency provide to a debtor when commencing a collection?
A third-party collection agency must comply with the federal Fair Debt Collection Practices Act (FDCPA). Pursuant to the FDCPA collection agencies must provide the following information to the debtor either in the initial communication or in writing within 5 days thereafter: (1) the amount of debt, (2) the name of the current creditor, (3) notice about the 30-day period in which the debtor may dispute the debt, (4) notice about the obligation of the collection agency to send the debtor verification of the debt if the debt is disputed and (5) notice that if the consumer requests it within 30 days, the debt collector will provide the name and address of the original creditor, if different from the current one.
What is a “Fictitious Business Name”?
Businesses that use a name other than the owner’s must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information, contact your state or local government.
What is bankruptcy?
Bankruptcy is a legal way to seek relief from creditors. A debtor often files for bankruptcy protection when he or she owes creditors more than he or she has the ability to pay. Very broadly, under federal bankruptcy law, debtors’ assets are used to pay off debt or payment plans are set up.
If I operate my business under my personal name, is it necessary to register it someplace?
In most states you do not need to register your own name if you are using it as your business name. To determine what the requirements are in your particular state, go to BusinessLaw.gov and find the specific laws related to registering your business under the State and Local Information section.
What are the major business organization forms, and how do I choose one that is right for my business?
The four major business organization forms are: (1) the partnership, (2) the limited liability company, (3) the corporation and (4) the sole proprietorship. Each has advantages and disadvantages, but when choosing the correct form for your business the core focus should typically be on personal liability and tax implications.
What are the advantages of forming a limited liability company?
The LLC is generally considered advantageous for small businesses because it combines the limited personal liability feature of a corporation with the tax advantage of a partnership or sole proprietorship. Profits and losses can be passed through the company to its members, or the LLC can elect to be taxed like a corporation. LLCs do not have stock and are not required to observe corporate formalities. Owners are called members, and the LLC is managed by these members or by appointed managers.