Acc538 Final Exam 2017/Acc538 Final Exam 2017

QuestionQuestion 1 (1 point)Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional busi¬ness capital but to maintain control. This can best be ac-complished by:Question 1 options:borrowing funds.selling the business.issuing stock.bringing in partners.SaveQuestion 2 (1 point)The Office of Postsecondary Education, like other federal administra¬tive agencies, is part of the government’s:Question 2 options:executive branch.legislative branch.judicial branch.administrative branch.SaveQuestion 3 (1 point)Kay is a salesperson for Liberty Financial Corporation. Mac is also a Liberty salesperson. Neil is Kay and Mac s supervisor. Own is a Liberty customer. Liberty may be liable for sexual harassment to Kay by:Question 3 options:Mac only.Neil only.Mac, Neil, or Owen.Mac or Neil only.SaveQuestion 4 (1 point)Parker and Oscar sign a partnership agreement to do business as “Parker’s Plumbing” without specifying a duration. This partnership is terminable:Question 4 options:at any time by either partner.only if Oscar dissociates from the firm.only if Parker dissociates from the firm.only after a reasonable term.SaveQuestion 5 (1 point)Accounting Applications, LLC, is a limited liability company. Unless indicated otherwise on Accounting s federal tax form, the firm will be taxed as:Question 5 options:a partnership.a corporation.a sole proprietorship.a person.SaveQuestion 6 (1 point)Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. Cardio pays Emitate not to sell its product. This price-fixing agreement is most likely:Question 6 options:a legal restraint of trade.a deal that neither restrains trade or harms competition.a per se violation of antitrust law.subject to analysis under the rule of reason.SaveQuestion 7 (1 point)Ben is admitted to Consolidated Associates, an existing partnership. A partnership debt incurred before the date of his admission comes due. Ben is:Question 7 options:only liable for the debt up to the amount of his capital contribution.personally liable only to the extent the other partners do not pay.not liable for the debt.personally liable to the full extent of the debt.SaveQuestion 8 (1 point)The functions of the National Labor Relations Board, like those of most administrative agencies, include:Question 8 options:rulemaking only.adjudication, investigation, and rulemaking.adjudication and investigation only.none of the above.SaveQuestion 9 (1 point)Precise GPS Company’s ad states that its product is “the finest that money can buy.” Because of this ad, the Federal Trade Com¬mission is most likely to issue:Question 9 options:a cease-and-desist order.a counteradvertising order.none of the choices.a multiple product order.SaveQuestion 10 (1 point)Verna makes a living by commercial fishing in a river allegedly polluted by Wall Paint Company. To bring a suit against Wall Paint on the ground of private nuisance, Verna must allege that she suffers from:Question 10 options:a lesser harm than an injunction would impose on Wall Paint.Wall Paint’s failure to use reasonable care to avert herm to Verna.a distinct harm separate from that affecting the general public.the same harm as that affecting the general public.SavePrevious PageNext PageQuestion 11 (1 point)Regional Distribution, Inc., files a suit against Sam, its former accountant, alleging actual fraud. Regional must proveQuestion 11 options:detrimental reliance only.none of the above.an intent to deceive and detrimental reliance.an intent to deceive only.SaveQuestion 12 (1 point)Nora is an executive for Omega Corporation. When acting for Omega in an ordinary business situation, Nora is:Question 12 options:an agent only.neither an agent nor a principal.a principal only.an agent and a principal.SaveQuestion 13 (1 point)Kelly, Lars, and Mona agree to be partners n Neighborhood Delivery Service (NDS), splitting the profits equally. Kelly contributes 67 percent of the capital. When NDS is dissolved, its liabilities are greater than its assets. The losses are paid by:Question 13 options:Kelly because she contributed most of the capital.Lars and Mona because they contributed the least of the capital.all of the partners in proportion to their capital contributions.all of the partners in proportion to their shares of the profits.SaveQuestion 14 (1 point)Concert Promotions Corporation licenses trademarks to Souvenir Specialties, Inc., to use in selling caps, sweatshirts, and similar goods. This is:Question 14 options:a sole proprietorship.an entrepreneur.a principal-agent relationship.a franchise.SaveQuestion 15 (1 point)Orange Company makes computers. The company’s ad states that “if you aren’t eatin’ an Orange, you aren’t gettin’ any ‘C.’ ” The Federal Trade Com-mission would consider this ad:Question 15 options:impermissibly vague and general.false and misleading.a deceptive half-truth.none of the choices.SaveQuestion 16 (1 point)Property Investments Corporation would like to change its corporate status to avoid income taxes at the corporate lever. To qualify, the firm must be:Question 16 options:a foreign corporation.a public corporation.an alien corporation.a domestic corporation.SaveQuestion 17 (1 point)Ester is a lighting technician who hires out on a per-project basis to film and television production companies, as well as theatres and other venues that stage dramatic and musical performances. In this capacity, Ester is:Question 17 options:an employee.an agent.a principal.an independent contractor.SaveQuestion 18 (1 point)Credit Extender, Inc. (CE), a creditor, wants to perfect its interest in property owned by Dandy Goods, Inc. (DG). Filing a financing statementQuestion 18 options:reduces CE, on DG s bankruptcy, to an unsecured creditor.is a technicality that has no practical effect.transfers DG s property into CE s possession.gives notice to other creditors of CE s security interest.SaveQuestion 19 (1 point)Ron, an accountant, fails to perform a contract with Stan, who suffers some penalties for Ron s failure to meet certain deadlines. Stan spends money to hire Tina to provide the contracted-for services. Ron may be liable forQuestion 19 options:only the expenses incurred by Stan to hire Tina.only the penalties imposed on Stan.the expenses and the penalties.none of the above.SaveQuestion 20 (1 point)Digitech is a foreign corporation, which means that Digitech:Question 20 options:is chartered in a country other than the U.S., such as Japan.is an alien corporation.may be required to obtain a certificate of authority to do business in states where it is not chartered.may transact business only in foreign nations.Question 21 (1 point)Great States Storage, Inc., a private company, wants to build a warehouse on private land. For this action, an environmental impact statement is:Question 21 options:required.voluntary.unnecessary.prohibited.SaveQuestion 22 (1 point)Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that FCC expects to receive as payment for Gary s debt before FCC can obtain a judgment. FCC may ask a court to issue a writ of:Question 22 options:attachment.contribution.execution.redemption.SaveQuestion 23 (1 point)Thirty-one days before filing a petition in bankruptcy, Tom transfers property and makes payments that favor one creditor over another. These are:Question 23 options:preferences.secured interests.considerations.none of the aboveSaveQuestion 24 (1 point)A petition for a discharge in bankruptcy under Chapter 7 may be filed by:Question 24 options:Regional Employees Credit Union, a corporation.First Savings and Loan Association, a corporation.Interstate Insurance Company, a corporation.Holly, an investment adviser.SaveQuestion 25 (1 point)Better Products Corporation makes and markets a variety of household goods. All Better Products product labels must identify:Question 25 options:the manufacturer.the percentage of the product that consists of artificial substances.the federal agency that inspected the product.the address to which complaints can be directed.SaveQuestion 26 (1 point)Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set up his business as a sole proprietorship would be:Question 26 options:the ease of transferring the business to other family members.its perpetual existence.its greater flexibility.its limited liability.SaveQuestion 27 (1 point)Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work:Question 27 options:during school hours.in a hazardous job.more than eighteen hours per week.without a special permit.SaveQuestion 28 (1 point)Nikita operates a sole proprietorship, a corporation, and a partnership. Nikita wants to obtain relief for her individual debts and the debts of her corporation and partnership. For each of these, Nikita may file a petition in bankruptcy for relief through:Question 28 options:a reorganization.a liquidation.a repayment plan.a family-farmer bankruptcy plan.SaveQuestion 29 (1 point)Phil s voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as:Question 29 options:Phil s creditors agree to the terms.Phil posts a bond to cover the costs of the proceedings.Phil files the petition.the trustee collects and distributes the property of Phil s estate.SaveQuestion 30 (1 point)Ann owes Ben $500 on their contract, but refuses to pay. To collect, Ben files a mechanic s lien, under which security for the debt is represented by:Question 30 options:Ann s real estate.the contract.Ann s personal property.the $500 owed under the contract.SavePrevious PageNext PageQuestion 31 (1 point)Techno Company s advertisement states that if you aren t using a Techno computer, you aren t using the best. The Federal Trade Commission would consider this ad:Question 31 options:misleading only.false and misleading.false only.none of the above.SaveQuestion 32 (1 point)Mold & Dye Corporation is a private employer in¬volved in an employment discrimination suit under the Civil Rights Act of 1964. Punitive damages may be recovered against Mold & Dye only if the employer:Question 32 options:can easily afford to pay the amount.consents.acted with malice or reckless indifference.has one hundred or more employees.SaveQuestion 33 (1 point)All-Rite Manufacturing Company pays a premium for an insurance policy on the life of Bill, its president. Cathy, an agent for National Insurance Company, sells the policy. The underwriter is:Question 33 options:Cathy.Bill.National Insurance Company.All-Rite Manufacturing Company.SaveQuestion 34 (1 point)Petro Oil Company wants to conduct genetic testing of its workers to identify those who might develop significant health problems in the future. Under federal law, Petro may use genetic information to:Question 34 options:deny group health-care coverage or charge a higher premium.make decisions about hiring or firing.make decision about job placement or promotion.none of the choices.SaveQuestion 35 (1 point)Caleb is a witness in a contro¬versy involving the U.S. Drug Enforcement Administration. Caleb can be compelled to appear before an adminis¬trative law judge if he is served with:Question 35 options:a rule for parol evidence.an order for specific performance.a subpoena.a politely worded request.SaveQuestion 36 (1 point)GR8 Fashion, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Hy-Time Clothes Company, GR8’s competitor. The FTC investigates and concludes that the ad is deceptive. The FTC’s next step is to:Question 36 options:permit GR8 to broadcast similarly deceptive counteradvertising.draft a formal complaint.conduct negotiations between the competitors.issue a cease-and-desist order.SaveQuestion 37 (1 point)Earl applies for, and obtains, a life insurance policy from Federated Insurance Corporation that contains an incontestability clause. This clause provides that Federated cannot contest statements made in the applicationQuestion 37 options:as soon as the policy is issued.after the policy has been effect for a specified period of time.under any circumstances.none of the above.SaveQuestion 38 (1 point)Joyce works for Kappa Services Corporation as an independent contractor, and not as an employee, if:Question 38 options:Joyce works on a permanent basis.Kappa does not control Joyce s work.Joyce says that she works as an independent contractor.Kappa withholds taxes form its payments to Joyce.SaveQuestion 39 (1 point)The Food and Drug Administration (FDA) is investigating reports that Rocco s Foods, Inc., is putting potentially harmful additives in hot dogs. The FDA s demands for particular documents from Rocco s Foods must be:Question 39 options:specific only.specific and not unduly burdensome.not unduly burdensome only.none of the above.SaveQuestion 40 (1 point)China Bank is a foreign entity—a firm owned and operated by investors in a foreign country. With respect to a limited liability company in the United States, China Bank can:Question 40 options:act as a creditor, but cannot otherwise invest or participate.not become a member, but can participate in its operations.not become a member or otherwise participate in its operations.become a member.SavePrevious PageNext PageQuestion 41 (1 point)Pat enters into a franchise agreement with Quik Food, Inc., which agrees not to grant additional franchises within Region City. When Quik later grants those other franchises, Pat files a suit to close them. This suit will likely:Question 41 options:fail if Quik did not give Pat exclusive rights to Region City.succeed if Pat paid a franchise fee.succeed if Pat was the first Quik franchisee in Region City.fail because excluding competitors violates the antitrust laws.SaveQuestion 42 (1 point)Ava is an accountant charged by Best Sales, Inc., a client, with negligence. Ava may successfully defend against the claim if she can show that:Question 42 options:scienter was lacking.the negligence was only contributory.the negligence was not the proximate cause of the client s losses.she complied with all generally accepted accounting principles.SaveQuestion 43 (1 point)Natural Gas Company does not use proper filters on its smokestacks, which consequently pollute the air. Obie, a Natural Gas employee, suffers respiratory illness. To succeed in a suit against Natural Gas on the ground of negligence, Obie must show that he suffers from:Question 43 options:the same harm as that affecting the general public.Natural Gas’s failure to use reasonable care to avert herm to Obie.a lesser harm than an injunction would impose on Natural Gas.a distinct harm separate from that affecting the general public.Save