Question

Your friend Augustus has come up with a clever business: he buys cheap beer then runs his own “bar” out of his basement and sells the beer at higher prices. He reports this income as profits from his “self-employment,” so he tells you he doesn’t have any legal liability. What kind of business law should you warn Augustus he is breaking?

(1 point)
Responses

operating without a license

operating without a license

tax fraud

tax fraud

money laundering

money laundering

bribery

Answer 1

You should warn Augustus that he is breaking the law by **operating without a license**. Running a bar, even from his basement, typically requires a business license and possibly a liquor license.