Chapter 2

Question 1

Accounts receivable

Answer 1

Money owed to a business from an outside party

Question 2

General LIablility Insurence

Answer 2

Insurence used to protect a business in cases such as an accident by a client resulting in injury

Question 3

Reciprocity

Answer 3

A massage license in one durisdiction being recognized as valid in another durisdiction

Question 4

Business plan

Answer 4

Document that states the objectives of a business and how they will be achived

Question 5

Accounts payable

Answer 5

Money owed by one business to another

Question 6

Professional Liability Insurence

Answer 6

Insurence used to protect a business in cases of malpractice and negligence

Question 7

S Corporation

Answer 7

Corporation that passes income and expenses on to its shareholders, Who must report to the IRS

Question 8

1040-Tax return document

Answer 8

Includes gross income, tax withheld, and deductions

Question 9

W-2

Answer 9

Filled by employees; Includes earnings, money withheld for SS taxes, medicaid, and state/federal income taxes

Question 10

1099

Answer 10

Form issued to independent contractors detailing income and royaltiesa earned during the previous year

Question 11

Schedule C

Answer 11

Attachment to the 1040 detailing the income for a business from the previous year for sole proprietorship

Question 12

Schedule SE

Answer 12

Attachment to the 1040 detailing social security tax info for self employed individuals

Question 13

Schedule K-1

Answer 13

Form filled by individual partnership members

Question 14

Profit and loss statement

Answer 14

Form submitted to the IRS detailing income an expenses for a business from the previous year

Question 15

Subpoena

Answer 15

Writ issued by the court requiring a person to testify in some way

Question 16

Subpoena Duces Tecum

Answer 16

Person summoned to appear in court with documentation and evidence

Question 17

Subpoena Ad Testificandum

Answer 17

Person summoned to appear in court to testify

Question 18

Respondeat Superior

Answer 18

Employer being held legally responsible for actions of the employee

Question 19

Res Ipsa Loquitur

Answer 19

Harm that has been done that would of not happened without negligence

Question 20

Pro Bono

Answer 20

Lawyer performing work without being compensated

Question 21

Deposition

Answer 21

Statement given under oath outside of a courtroom setting; used as testimony in trial

Question 22

Mediation

Answer 22

both parties come together to form a settlement

Question 23

Arbitration

Answer 23

A third party is used to determine a binding outcome for the two parties

Question 24

Good Samaritan law

Answer 24

Protects only any person who is providing aid to another that may be in immediate danger, I’ll, or incapacitated

Question 25

License

Answer 25

Requirement used to regulate the practice of massage earned by the state

Question 26

Certification

Answer 26

Obtained in a school enviromnment