Building Your Dream Canadian 10th

Edition Good Test Bank

Go to download the full and correct content document:
https://testbankfan.com/product/building-your-dream-canadian-10th-edition-good-test-
bank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...

Building Your Dream Canadian 10th Edition Good

Solutions Manual

https://testbankfan.com/product/building-your-dream-
canadian-10th-edition-good-solutions-manual/

Selling Building Partnerships 10th Edition Castleberry

Test Bank

https://testbankfan.com/product/selling-building-
partnerships-10th-edition-castleberry-test-bank/

Invitation to Health Building Your Future Brief Edition

8th Edition Dianne Hales Test Bank

https://testbankfan.com/product/invitation-to-health-building-
your-future-brief-edition-8th-edition-dianne-hales-test-bank/

Supervision Concepts and Skill Building 10th Edition

Certo Test Bank

https://testbankfan.com/product/supervision-concepts-and-skill-
building-10th-edition-certo-test-bank/
Invitation to Health Building Your Future Brief Edition
8th Edition Dianne Hales Solutions Manual

https://testbankfan.com/product/invitation-to-health-building-
your-future-brief-edition-8th-edition-dianne-hales-solutions-
manual/

Selling Building Partnerships 10th Edition Castleberry

Solutions Manual

https://testbankfan.com/product/selling-building-
partnerships-10th-edition-castleberry-solutions-manual/

Business Communication Building Critical Skills

Canadian 6th Edition Braun Test Bank

https://testbankfan.com/product/business-communication-building-
critical-skills-canadian-6th-edition-braun-test-bank/

Human Relations in Organizations Applications and Skill

Building 10th Edition Lussier Test Bank

https://testbankfan.com/product/human-relations-in-organizations-
applications-and-skill-building-10th-edition-lussier-test-bank/

Business Communication Polishing Your Professional

Presence Canadian 1st Edition Shwom Test Bank

https://testbankfan.com/product/business-communication-polishing-
your-professional-presence-canadian-1st-edition-shwom-test-bank/
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Under which business form, does the owner have complete control over the conduct and management of the
business?
A) Sole proprietorship
B) Limited partnership
C) General partnership
D) Corporation
Answer: A

2) All of the following are advantages of the sole proprietorship form of business organization, except:
A) No sharing of profits
B) Individual control
C) Limited liability
D) Tax simplicity
Answer: C

3) As a sole proprietor, your taxes are:

A) Paid in installments throughout the year, but keep separate from your personal employment income.
B) Fairly simple, since your business income is declared on your personal tax return.
C) Declared on a separate form provided by Revenue Canada.
D) More complex, compared to a corporation.
Answer: B

4) Many small businesses are no longer using Excel, instead preferring the use of ________ to handle estimates,
invoice clients, and keep track of expenses.
A) iAccounting
B) Quicken
C) Freshbooks
D) MacBook
Answer: C

5) Small businesses in Ontario must register for and start collecting HST once their business makes:
A) A profit.
B) Dividend payments to its shareholders.
C) Over $30,000.
D) Credit available to its customers.
Answer: C

6) In Ontario, small businesses should plan to pay approximately ________ in taxes, when considering both HST
and income tax that they must surrender to Revenue Canada at the end of the year.
A) 20-30%
B) 60-80%
C) 35-50%
D) 10-15%
Answer: C

1
 7) If your business is paid $15,000 for providing services to a client, but it cost you $6000 in supplies and
equipment in order to provide that service, then you will be taxed on:
A) $21 000
B) $9000
C) $15 000
D) $6000
Answer: B

8) A general partnership is most similar to a ________, expect for the number of people running the business.
A) Multiple partnership
B) Limited partnership
C) Sole proprietorship
D) Corporation
Answer: C

9) All of the following are advantages of a general partnership, except:

A) Pooling of financial resources
B) Increased ability to obtain capital
C) Unlimited liability
D) Simplicity and ease of organization
Answer: C

10) Which of the following is considered to be a disadvantage of the general partnership form of business
organization?
A) Growth potential
B) Greater access to capital
C) Divided authority
D) Greater talent pool
Answer: C

11) Which of the following is considered a disadvantage of a limited partnership?

A) Great access to capital
B) Difficulty in changing ownership
C) Limited liability
D) Growth potential
Answer: B

12) In order to incorporate, a business must be earning:

A) There is no specific earnings threshold for incorporation
B) In excess of $100,000
C) Less than $30,000
D) In excess of $500,000
Answer: A

13) The ________ structure of a co-op is maintained by a one-member/one- ________ system.

A) Autocratic; vote
B) Private; share
C) Democratic; vote
D) Public; share
Answer: C

2
14) A co-operative is owned and operated by:
A) Its membership
B) The federal government
C) The provincial government
D) The public sector
Answer: A

15) Credit unions are:

A) Agricultural co-operatives
B) Financial co-operatives
C) Marketing co-operatives
D) Manufacturing co-operatives
Answer: B

16) How do survival rates of co-operatives compare to those of other business corporations?
A) There is no research which compares the sustainability of co-operatives to that of other business
corporations.
B) The survival rate of a co-operative enterprise is more than twice that of other business corporations after
10 years.
C) The survival rate of a co-operative enterprise is about half that of other business corporations after 10
years.
D) Co-operatives are less sustainable than other business corporation.
Answer: B

17) All of the following are examples of Canadian co-operative enterprises, except:
A) Desjardins
B) Sportinglife
C) The Co-operators Insurance
D) Mountain Equipment Co-operative
Answer: B

18) Which of the following company names does not require formal registration for a sole proprietorship?
A) Sunlight Spa
B) Peter Wan's Painting Professionals
C) Eager Beaver
D) Fanciful Flowers
Answer: B

19) When it comes to selecting a business name to be registered, or for the purpose of incorporation, all of the
following apply except:

A) Any name that is similar to a name already registered will be rejected to avoid public confusion.
B) The name must be acceptable to the Registrar of Companies in your province.
C) Names are generally approved on the first submission.
D) The name is typically reserved for your exclusive use for 90 days.
Answer: C

3
20) Which of the following is an example of a regular deduction your business will be required to make from
employees' paycheques?
A) Employment Insurance
B) Fitness memberships
C) Dental insurance
D) Parking
Answer: A

21) The Harmonized Sales Tax (HST) is:

A) A tax which is the integration of the provincial sales tax and the federal government's Goods and Services
Tax (GST).
B) The name of the tax that the federal government charges incorporated businesses only.
C) The tax that combines the Employment tax and the Pension tax.
D) A tax paid only by businesses operating in the music industry.
Answer: A

22) If your business has taxable revenues which do not exceed ________ you do not have to register for the GST or
HST.
A) $30,000
B) All businesses in Canada have to register for the GST or HST.
C) $100,000
D) $50,000
Answer: A

23) Federal and provincial employment standards in Canada deal with all of the following, except:
A) Hours of work
B) Minimum wages
C) Scheduling conflicts
D) Overtime pay
Answer: C

24) Which of the following is not one of the three broad approaches to managing risk?
A) Renew it
B) Retain it
C) Transfer it
D) Reduce it
Answer: A

25) Which of the following types of insurance protects you from extraordinary bad debt losses due to a customer
going out of business?
A) Credit insurance
B) Key-person insurance
C) Business interruption insurance
D) Business premises insurance
Answer: A

4
26) Which of the following types of insurance considered life insurance purchased by the business with the business
being the sole beneficiary?
A) Business premises insurance
B) Business interruption insurance
C) Key-person insurance
D) Credit insurance
Answer: C

27) Which of the following types of insurance covers your liability to customers injured on your premises, or
injured off your premises by a product you have sold to them?
A) Business interruption or loss-of-income insurance
B) General liability insurance
C) Credit insurance
D) Business interruption insurance
Answer: B

28) Which of the following types of insurance will enable you to continue to pay the bills if your business should be
closed down by damage due to fire, flood, or other catastrophe?
A) Key-person insurance
B) Credit insurance
C) Business interruption or loss-of-income insurance
D) General liability insurance
Answer: C

29) Which of the following terms is used to describe a business owner with whom you have formed a relationship
over time and respect them for the advice and consultation they can offer to your small business?
A) Ethics agent
B) Mentor
C) Board officer
D) Director
Answer: B

30) A ________ is a body of elected or appointed members who jointly oversee the activities of a company or
organization.
A) board of directors
B) regency team
C) advisory board
D) mentor
Answer: A

31) A(n) ________ is a group set up to meet regularly to review business plans and new projects and also to give
feedback, as needed, whenever special questions arise.
A) board of governors
B) advisory board
C) board of directors
D) board of trustees
Answer: B

5
32) Which of the following is not patentable?
A) An apparatus
B) A composition
C) An idea
D) A process
Answer: C

33) All of the following items are patentable, except:

A) A method of making wine
B) A computer program
C) A tool
D) A window opening device
Answer: B

34) Which of the following did Canadians vote as the number one invention in the "Greatest Canadian Invention"?
A) Insulin (1921, Frederick Banting, Charles Best)
B) The Zipper (1913, Gideon Sundback)
C) The Telephone (1876, Alexander Graham Bell)
D) The Wonderbra (1964, Louise Poirier)
Answer: C

35) A ________ is a word, symbol, picture, design, or combination of these that distinguishes your goods and
services from those of others in the marketplace.
A) Trademark
B) Patent
C) Registered symbol
D) Copyright
Answer: A

36) How long is a registered trademark valid?

A) 1 year
B) 15 years
C) 5 years
D) Indefinitely
Answer: B

37) A(n) ________ gives you the right to preclude others from reproducing or copying your original published
work.
A) Patent
B) Industrial design
C) Copyright
D) Trademark
Answer: C

38) What period of time is covered by a patent?

A) 30 years
B) 10 years
C) 20 years
D) 50 years
Answer: C

6
39) Patents have to be filed:
A) Within 60 days of publication
B) Within 5 years of publication
C) Within 1 year of publication
D) Before publication
Answer: C

40) A copyright exists for:

A) Until the death of the copyright holder
B) 15 years
C) For 50 years beyond the death of the copyright holder
D) 5 years
Answer: C

41) A(n) ________ comprises the features of shape, configuration, pattern, or ornament applied to a finished article
made by hand, tool, or machine.
A) Copyright
B) Patent
C) Trademark
D) Industrial design
Answer: D

42) Limited partners can participate in a single aspect of the business (for instance, sales or marketing), but they
cannot participate in the general operational activities of the business.
A) True
B) False
Answer: B

43) Limited partners have one major power–the ability to remove the general partner(s).
A) True
B) False
Answer: A

44) A limited liability partnership (LLP) is typically only available to manufacturing businesses.
A) True
B) False
Answer: B

45) A sole proprietorship regularly earning in excess of $40,000 to $50,000 of taxable income annually is not large
enough to warrant incorporation.
A) True
B) False
Answer: B

46) Not-for-Profit organizations cannot incorporate in Canada.

A) True
B) False
Answer: B

7
47) In a co-operative, it is possible for some members to exert greater control over the direction of the business by
making a greater financial investment than other members.
A) True
B) False
Answer: B

48) Under the sole proprietorship business form, the owner's personal assets (home, cottage, etc.) are not at risk
should the business venture encounter financial distress.
A) True
B) False
Answer: B

49) In a co-operative, membership may consist of employees or producers but not customers.
A) True
B) False
Answer: B

50) A business name which implies a connection with or approval of the Royal Family, is likely to be rejected.
A) True
B) False
Answer: A

51) A potential business name which is similar to (or contractions of) the names of companies already in business,
are likely to be accepted providing the business is in a different field.
A) True
B) False
Answer: B

52) The best approach to selecting a name for your business is to choose a name that is one syllable and has many
rhyming words.
A) True
B) False
Answer: B

53) If you use alternative spellings in your business name, or insert punctuation marks or numbers to try to add a
bit of flair, it is more likely to be remembered.
A) True
B) False
Answer: B

54) One of the most common means of shifting at least some of the risk associated with the occurrence of a major
catastrophe is through insurance.
A) True
B) False
Answer: A

55) Every business requires a municipal licence from the region in which they operate.
A) True
B) False
Answer: B

8
 56) Mandatory deductions including income tax, Employment Insurance (EI), and the Canada Pension Plan (CPP),
must be remitted to Industry Canada every month.
A) True
B) False
Answer: B

57) Another name used for the board of directors is the board of trustees.
A) True
B) False
Answer: A

58) For companies with publicly traded stock, the responsibilities of the board of directors are much more rigorous
and complex than for those of other types of companies.
A) True
B) False
Answer: A

59) A non disclosure agreement (NDA) allows you to share details of your intellectual property with other people
whose input you may be seeking without jeopardizing the information.
A) True
B) False
Answer: A

60) All government employees are prohibited from signing an NDA.

A) True
B) False
Answer: B

61) A patent granted in Canada or the United States provides you with protection outside the country for a period
of one year from the day on which the patent was granted.
A) True
B) False
Answer: B

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

62) List the typical duties performed by the board of directors.

Answer: Typical duties of boards of directors include:

• governing the organization by establishing broad policies and objectives;

• selecting, appointing, supporting and reviewing the performance of the chief executive;
ensuring the availability of adequate financial resources;
• approving annual budgets;
• accounting to the stakeholders for the organization's performance;
• setting the salaries and compensation of company management.

9
63) Is there a role for an advisory board in small business with only four employees?
Answer: No business is too small to benefit from having an advisory board and an advisory board is such a
powerful management tool that no small business should be without one.
An advisory board is composed of people with a genuine interest in your business and a desire to see it
do well. Advisory board members will serve as a sounding board, a source of ideas and expertise–and
give you honest advice.

64) What are the three basic criteria that your device or invention must meet in order to be patentable?
Answer: To be patentable, your device must meet three basic criteria:

1. Have "absolute novelty." The invention must be new (first in the world).
2. Be useful. A patent cannot be obtained for something that doesn't work or has no useful function.
3. It must show inventive ingenuity and not be obvious to someone skilled in that area.

65) What is the difference between a general partnership and a limited partnership?
Answer: In a limited partnership, the partners' share in the liability of the business is limited to the extent of their
contribution to the capital of the business. In such a partnership, however, there must also be one or more
general partners, that is, partners with unlimited liability. The limited partners may not participate in the
day-to-day management of the business of the partnership or they risk losing their limited-liability
status. Also, a limited partner is entitled to interest on his or her capital and some agreed-on share of the
profits. Limited partners have one major power–the ability to remove the general partner(s). A general
partnership is similar to a sole proprietorship except that responsibility for the business rests with two or
more people, the partners. In a general partnership all the partners are liable for the obligations of the
partnership and share in both profits and losses according to the terms of their partnership agreement.

66) Discuss the advantages of incorporation.

Answer: Answers will vary, but the basic advantages which should be included in the response include: Limited
liability, Continuity of the business even if the owner dies, Easier to raise capital, Employee benefits, Tax
advantages.

67) In what way are co-operatives around the world united?

Answer: Co-operatives around the world are united by a set of seven core principles–making it the only business
model which operates based on a common code. By law, these seven principles must be followed by all
co-operatives, effectively enshrining the concept of the triple bottom line (people, planet, profit) into the
co-ops' mandates.

68) Describe the advantages of the co-operative form of business.

Answer: • Money and jobs stay in the local economy
• Form of control is democratic – one member, one vote regardless of investment
• Limited liability
• Earnings surplus after meeting the needs of the co-op, is distributed to the members according to their
use of the services of the co-op, and/or given back through reduced prices or fees
• Survival rate over 10 years is more than double other forms of business

69) Describe the disadvantages of the co-operative form of business.

Answer: • Democratic process may increase decision-making times and add complexity to record keeping
• Ability to raise capital is generally limited to the membership
• Startup requires 5 or more members (3 or more for worker co-ops)
• Co-op consultants and developers are not as readily available as for other forms of business enterprise

10
70) Does a sole proprietorship need to register their business legally?
Answer: For a sole proprietorship, no formal, legal registration is required as long as the business is operated just
under your own name. However, if a specific business name like "Regal Dry Cleaners" or "Excel
Construction" is used, or if more than one owner is implied by the use of "and Associates" or "and Sons"
in conjunction with your name, your business must be logged with the Registrar of Companies or the
Corporations Branch of the province in which the business is located. Registration is a relatively simple
and inexpensive process that you can probably take care of yourself. Partnerships must be registered in a
similar fashion.

71) Compare a private company to a public company.

Answer: Public companies are those like Alcan and Great-West Life, which trade their shares on one of the
country's public stock exchanges. They typically employ professional managers, external directors, and a
number of shareholders who are the owners of the business. Private companies, on the other hand, tend
to have only one shareholder, or at most, a small number of shareholders. There is some restriction on the
transfer of their shares in their articles of incorporation, and their shares cannot be offered for sale to the
public. A private corporation is sometimes called an incorporated partnership, because it usually consists
of one, two, or three people who are personal friends, business associates, or family members, each of
whom may play two or three roles, serving, for example, as an officer, director, and a shareholder of the
company all at the same time.

72) What are some important considerations when deciding on a name that grabs people's attention, is easy to
remember, has long-lasting appeal, and reinforces your brand?
Answer: The list of "do's" and "don'ts" include: Do: Make it Catchy; Do: Test the Waters; Do: Consider a
Trademark; Don't: Get Too Creative or Descriptive; Don't: Fall Victim to Text Message Syndrome; Don't:
Resist Change if it's Necessary.

73) Identify some common threats to a new firm.

Answer: Some common threats to new firms include:

• The entry of new unexpected competition

• Increased cost of labour, supplies or raw materials
• Changes to the economic landscape like a recession, increased interest rates, higher taxes, currency
fluctuations and inflation
• Catastrophic events or so-called acts of God like fire, flood and similar events or the sudden death of a
partner
• Criminal acts such as shoplifting, burglary or embezzlement by employees

74) Describe the three broad approaches to managing risk.

Answer: • You can reduce it by taking some defensive action and possibly reducing its impact. This could include
deciding to avoid taking an action entirely that you have determined to be too risky.
• You can transfer it or shift the risk to another party, for example by outsourcing the work or by
obtaining insurance.
• You can retain it, accepting it as a possible cost of doing business and budgeting for it accordingly.

75) What does a mentor do?

Answer: A mentor won't tell you what to do, nor will they negotiate on your behalf, but they will help you work
through the process of making the decision that is right for you.

11
76) What is meant by "patent pending"?
Answer: If you have a patent application in process and are concerned that someone else may attempt to patent
your invention, you may use the label "Patent Pending" or "Patent Applied For" to inform the public that
your application for a patent has been filed. This, however, has no legal significance and does not mean
that a patent will necessarily be granted. Of course, it is illegal to use this term if in fact no application is
on file.

77) How can a patent improve the profitability of your creation?

Answer: Holding a patent may improve your profitability by keeping similar products off the market, giving you
an edge. But there is no guarantee you will be able to prevent all competition. In fact, disclosing your idea
in a patent might open the way for a competitor to steal your concept and introduce an imitation or
"knock-off" of your product.

78) What are the benefits of registering your trademark with a government agency?
Answer: To register a trademark means to file it with a government agency for the purpose of securing the
following rights and benefits:

1. Exclusive permission to use the brand name or identifier in Canada

2. The right to sue anyone you suspect of infringing on your trademark to recover lost profits on sales
made under your trade name, and for other damages and costs
3. The basis for filing an application in another country should you wish to export your product

79) What makes a trademark valuable?

Answer: The value of a trademark lies in the goodwill the market attaches to it and the fact that consumers will
ask for your brand with the expectation of receiving the same quality product or service as previously.
Therefore, unlike a patent, a trademark should be registered only if you have some long-term plans for it
that will result in an accumulation of goodwill.

80) What kind of protection is provided to the proprietor of a registered design?

Answer: As with other forms of intellectual property, you may take legal action against anyone who infringes on
your design in Canada. As the proprietor of the registered design, however, you have exclusive right to
use it and may sell all or some of these rights to other people or authorize them to use the design, subject
to certain conditions. These rights, however, relate only to Canada. To obtain similar rights in other
countries you must apply for them in each country separately.

81) What is a trade secret? Provide some examples.

Answer: A trade secret is difficult to define but may consist of a formula for a chemical compound, a process of
manufacturing, a means of treating or preserving materials, a pattern for a machine or other device, a list
of customers, or any other secrets which are used in a business, and may give it an advantage over
competitors who do not know the trade secret. The most well-known trade secrets are probably the
formula for Coca Cola or how Cadbury's Chocolates gets the caramel into the Caramilk bar.

12
Another random document with
no related content on Scribd:
1.C. The Project Gutenberg Literary Archive Foundation (“the
Foundation” or PGLAF), owns a compilation copyright in the
collection of Project Gutenberg™ electronic works. Nearly all the
individual works in the collection are in the public domain in the
United States. If an individual work is unprotected by copyright law in
the United States and you are located in the United States, we do
not claim a right to prevent you from copying, distributing,
performing, displaying or creating derivative works based on the
work as long as all references to Project Gutenberg are removed. Of
course, we hope that you will support the Project Gutenberg™
mission of promoting free access to electronic works by freely
sharing Project Gutenberg™ works in compliance with the terms of
this agreement for keeping the Project Gutenberg™ name
associated with the work. You can easily comply with the terms of
this agreement by keeping this work in the same format with its
attached full Project Gutenberg™ License when you share it without
charge with others.

1.D. The copyright laws of the place where you are located also
govern what you can do with this work. Copyright laws in most
countries are in a constant state of change. If you are outside the
United States, check the laws of your country in addition to the terms
of this agreement before downloading, copying, displaying,
performing, distributing or creating derivative works based on this
work or any other Project Gutenberg™ work. The Foundation makes
no representations concerning the copyright status of any work in
any country other than the United States.

1.E. Unless you have removed all references to Project Gutenberg:

1.E.1. The following sentence, with active links to, or other

immediate access to, the full Project Gutenberg™ License must
appear prominently whenever any copy of a Project Gutenberg™
work (any work on which the phrase “Project Gutenberg” appears, or
with which the phrase “Project Gutenberg” is associated) is
accessed, displayed, performed, viewed, copied or distributed:
 This eBook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this eBook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.

1.E.2. If an individual Project Gutenberg™ electronic work is derived

from texts not protected by U.S. copyright law (does not contain a
notice indicating that it is posted with permission of the copyright
holder), the work can be copied and distributed to anyone in the
United States without paying any fees or charges. If you are
redistributing or providing access to a work with the phrase “Project
Gutenberg” associated with or appearing on the work, you must
comply either with the requirements of paragraphs 1.E.1 through
1.E.7 or obtain permission for the use of the work and the Project
Gutenberg™ trademark as set forth in paragraphs 1.E.8 or 1.E.9.

1.E.3. If an individual Project Gutenberg™ electronic work is posted

with the permission of the copyright holder, your use and distribution
must comply with both paragraphs 1.E.1 through 1.E.7 and any
additional terms imposed by the copyright holder. Additional terms
will be linked to the Project Gutenberg™ License for all works posted
with the permission of the copyright holder found at the beginning of
this work.

1.E.4. Do not unlink or detach or remove the full Project

Gutenberg™ License terms from this work, or any files containing a
part of this work or any other work associated with Project
Gutenberg™.

1.E.5. Do not copy, display, perform, distribute or redistribute this

electronic work, or any part of this electronic work, without
prominently displaying the sentence set forth in paragraph 1.E.1 with
active links or immediate access to the full terms of the Project
Gutenberg™ License.
1.E.6. You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form,
including any word processing or hypertext form. However, if you
provide access to or distribute copies of a Project Gutenberg™ work
in a format other than “Plain Vanilla ASCII” or other format used in
the official version posted on the official Project Gutenberg™ website
(www.gutenberg.org), you must, at no additional cost, fee or expense
to the user, provide a copy, a means of exporting a copy, or a means
of obtaining a copy upon request, of the work in its original “Plain
Vanilla ASCII” or other form. Any alternate format must include the
full Project Gutenberg™ License as specified in paragraph 1.E.1.

1.E.7. Do not charge a fee for access to, viewing, displaying,

performing, copying or distributing any Project Gutenberg™ works
unless you comply with paragraph 1.E.8 or 1.E.9.

1.E.8. You may charge a reasonable fee for copies of or providing

access to or distributing Project Gutenberg™ electronic works
provided that:

• You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg™ works calculated using the
method you already use to calculate your applicable taxes. The
fee is owed to the owner of the Project Gutenberg™ trademark,
but he has agreed to donate royalties under this paragraph to
the Project Gutenberg Literary Archive Foundation. Royalty
payments must be paid within 60 days following each date on
which you prepare (or are legally required to prepare) your
periodic tax returns. Royalty payments should be clearly marked
as such and sent to the Project Gutenberg Literary Archive
Foundation at the address specified in Section 4, “Information
about donations to the Project Gutenberg Literary Archive
Foundation.”

• You provide a full refund of any money paid by a user who

notifies you in writing (or by e-mail) within 30 days of receipt that
s/he does not agree to the terms of the full Project Gutenberg™
License. You must require such a user to return or destroy all
 copies of the works possessed in a physical medium and
discontinue all use of and all access to other copies of Project
Gutenberg™ works.

• You provide, in accordance with paragraph 1.F.3, a full refund of

any money paid for a work or a replacement copy, if a defect in
the electronic work is discovered and reported to you within 90
days of receipt of the work.

• You comply with all other terms of this agreement for free
distribution of Project Gutenberg™ works.

1.E.9. If you wish to charge a fee or distribute a Project Gutenberg™

electronic work or group of works on different terms than are set
forth in this agreement, you must obtain permission in writing from
the Project Gutenberg Literary Archive Foundation, the manager of
the Project Gutenberg™ trademark. Contact the Foundation as set
forth in Section 3 below.

1.F.

1.F.1. Project Gutenberg volunteers and employees expend

considerable effort to identify, do copyright research on, transcribe
and proofread works not protected by U.S. copyright law in creating
the Project Gutenberg™ collection. Despite these efforts, Project
Gutenberg™ electronic works, and the medium on which they may
be stored, may contain “Defects,” such as, but not limited to,
incomplete, inaccurate or corrupt data, transcription errors, a
copyright or other intellectual property infringement, a defective or
damaged disk or other medium, a computer virus, or computer
codes that damage or cannot be read by your equipment.

1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except

for the “Right of Replacement or Refund” described in paragraph
1.F.3, the Project Gutenberg Literary Archive Foundation, the owner
of the Project Gutenberg™ trademark, and any other party
distributing a Project Gutenberg™ electronic work under this
agreement, disclaim all liability to you for damages, costs and
expenses, including legal fees. YOU AGREE THAT YOU HAVE NO
REMEDIES FOR NEGLIGENCE, STRICT LIABILITY, BREACH OF
WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
PROVIDED IN PARAGRAPH 1.F.3. YOU AGREE THAT THE
FOUNDATION, THE TRADEMARK OWNER, AND ANY
DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE LIABLE
TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL,
PUNITIVE OR INCIDENTAL DAMAGES EVEN IF YOU GIVE
NOTICE OF THE POSSIBILITY OF SUCH DAMAGE.

1.F.3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you

discover a defect in this electronic work within 90 days of receiving it,
you can receive a refund of the money (if any) you paid for it by
sending a written explanation to the person you received the work
from. If you received the work on a physical medium, you must
return the medium with your written explanation. The person or entity
that provided you with the defective work may elect to provide a
replacement copy in lieu of a refund. If you received the work
electronically, the person or entity providing it to you may choose to
give you a second opportunity to receive the work electronically in
lieu of a refund. If the second copy is also defective, you may
demand a refund in writing without further opportunities to fix the
problem.

1.F.4. Except for the limited right of replacement or refund set forth in
paragraph 1.F.3, this work is provided to you ‘AS-IS’, WITH NO
OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

1.F.5. Some states do not allow disclaimers of certain implied

warranties or the exclusion or limitation of certain types of damages.
If any disclaimer or limitation set forth in this agreement violates the
law of the state applicable to this agreement, the agreement shall be
interpreted to make the maximum disclaimer or limitation permitted
by the applicable state law. The invalidity or unenforceability of any
provision of this agreement shall not void the remaining provisions.
1.F.6. INDEMNITY - You agree to indemnify and hold the
Foundation, the trademark owner, any agent or employee of the
Foundation, anyone providing copies of Project Gutenberg™
electronic works in accordance with this agreement, and any
volunteers associated with the production, promotion and distribution
of Project Gutenberg™ electronic works, harmless from all liability,
costs and expenses, including legal fees, that arise directly or
indirectly from any of the following which you do or cause to occur:
(a) distribution of this or any Project Gutenberg™ work, (b)
alteration, modification, or additions or deletions to any Project
Gutenberg™ work, and (c) any Defect you cause.

Section 2. Information about the Mission of

Project Gutenberg™
Project Gutenberg™ is synonymous with the free distribution of
electronic works in formats readable by the widest variety of
computers including obsolete, old, middle-aged and new computers.
It exists because of the efforts of hundreds of volunteers and
donations from people in all walks of life.

Volunteers and financial support to provide volunteers with the

assistance they need are critical to reaching Project Gutenberg™’s
goals and ensuring that the Project Gutenberg™ collection will
remain freely available for generations to come. In 2001, the Project
Gutenberg Literary Archive Foundation was created to provide a
secure and permanent future for Project Gutenberg™ and future
generations. To learn more about the Project Gutenberg Literary
Archive Foundation and how your efforts and donations can help,
see Sections 3 and 4 and the Foundation information page at
www.gutenberg.org.

Section 3. Information about the Project

Gutenberg Literary Archive Foundation
The Project Gutenberg Literary Archive Foundation is a non-profit
501(c)(3) educational corporation organized under the laws of the
state of Mississippi and granted tax exempt status by the Internal
Revenue Service. The Foundation’s EIN or federal tax identification
number is 64-6221541. Contributions to the Project Gutenberg
Literary Archive Foundation are tax deductible to the full extent
permitted by U.S. federal laws and your state’s laws.

The Foundation’s business office is located at 809 North 1500 West,

Salt Lake City, UT 84116, (801) 596-1887. Email contact links and up
to date contact information can be found at the Foundation’s website
and official page at www.gutenberg.org/contact

Section 4. Information about Donations to

the Project Gutenberg Literary Archive
Foundation
Project Gutenberg™ depends upon and cannot survive without
widespread public support and donations to carry out its mission of
increasing the number of public domain and licensed works that can
be freely distributed in machine-readable form accessible by the
widest array of equipment including outdated equipment. Many small
donations ($1 to $5,000) are particularly important to maintaining tax
exempt status with the IRS.

The Foundation is committed to complying with the laws regulating

charities and charitable donations in all 50 states of the United
States. Compliance requirements are not uniform and it takes a
considerable effort, much paperwork and many fees to meet and
keep up with these requirements. We do not solicit donations in
locations where we have not received written confirmation of
compliance. To SEND DONATIONS or determine the status of
compliance for any particular state visit www.gutenberg.org/donate.

While we cannot and do not solicit contributions from states where

we have not met the solicitation requirements, we know of no
prohibition against accepting unsolicited donations from donors in
such states who approach us with offers to donate.

International donations are gratefully accepted, but we cannot make

any statements concerning tax treatment of donations received from
outside the United States. U.S. laws alone swamp our small staff.

Please check the Project Gutenberg web pages for current donation
methods and addresses. Donations are accepted in a number of
other ways including checks, online payments and credit card
donations. To donate, please visit: www.gutenberg.org/donate.

Section 5. General Information About Project

Gutenberg™ electronic works
Professor Michael S. Hart was the originator of the Project
Gutenberg™ concept of a library of electronic works that could be
freely shared with anyone. For forty years, he produced and
distributed Project Gutenberg™ eBooks with only a loose network of
volunteer support.

Project Gutenberg™ eBooks are often created from several printed

editions, all of which are confirmed as not protected by copyright in
the U.S. unless a copyright notice is included. Thus, we do not
necessarily keep eBooks in compliance with any particular paper
edition.

Most people start at our website which has the main PG search
facility: www.gutenberg.org.

This website includes information about Project Gutenberg™,

including how to make donations to the Project Gutenberg Literary
Archive Foundation, how to help produce our new eBooks, and how
to subscribe to our email newsletter to hear about new eBooks.