ACCT 324 Exam 2 Study

If Corporation A combines with Corporation B such that only Corporation A continues to exist, what has occurred?

A merger

A successful plaintiff under the American with Disabilities Act may recover all but which of the following?

A promotion and pay raise

Which of the following is required for an agency by ratification to be effective?

An individual must misrepresent their identity as an agent for another party.

What percentage of the outstanding shares of a subsidiary's stock must a parent corporation own for a short-form merger?

At least 90 percent

Which of the following are recognized as distinct forms of sexual harassment?

Hostile work environment; quid pro quo

When can a principal be liable for the crime of an agent?

If the principal authorized the criminal act

Which of the following types of termination occurs due to operation of law?

Insanity

Which of the following terminations occurs by act of parties?

Lapse of time

In a consolidation, which corporation(s) continue(s) to exist legally?

Neither of the original corporations

Alexandria's Intimates sells women's lingerie. It hires only females to model its clothing. On what basis may the company be able to defend itself should a case of discrimination on the basis of sex been filed against the company by a male?

On the basis of bona fide occupational qualification

________blank sexual harassment cases occur when a supervisor makes a sexual demand on someone and this demand is reasonably perceived as a "term or condition" of employment.

Quid pro quo

Which of the following must a plaintiff prove first in a disparate impact case?

The plaintiff must first prove statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class.

Which of the following statements is true regarding a partially disclosed principal?

The principal and the agent are both considered parties to the contract and each may be liable separately from the other.

What occurs in a self-tender offer?

The target corporation offers to buy its own shareholders' stock.

An agent who is not paid for his or her services is known as a ________blank agent.

gratuitous

If Corporation A wants to takeover Corporation B but Corporation B objects, the takeover is referred to as ________.

hostile takeover

An agent has not breached the duty of ________ if the principal gives unlawful or unethical instructions.

obedience

A shareholder can authorize a third party to act as a(n) ________blank to attend shareholder meetings and vote on behalf of the shareholder who cannot attend the meeting.

proxy

A court may apply the ________ to find a corporate officer criminally liable regardless of the extent to which the officer took part in any criminal activity.

responsible person doctrine

A(n) ________blank is an owner of the corporation, and ________blank is this party's goal.

shareholder; raising the value of the corporation's stock

If an agency contract is for personal services, the agent does not have the right to pursue ________ as a remedy if the principal does not perform as agreed.

specific performance

If a director or officer makes a decision that benefits other companies with which they have a relationship, this person has engaged in which of the following activities?

Self-dealing

________blank typically approve/disapprove of major decisions of the board.

Shareholders

Employers may use social media in hiring and firing decisions if which of the following occurs?

The employer does not run afoul of state and federal employment laws and regulations.

Which of the following is not a procedural requirement for a merger or consolidation?

The officers of all involved corporations must approve the plan by a super-majority vote.

Which of the following is true for mergers and consolidations?

The shareholders of all involved corporations must approve the plan by a vote at a shareholder meeting.

While a principal's tort liability depends upon whether the employee/agent was acting within the scope of his or her authority, misrepresentation liability depends upon which of the following?

Whether the principal authorized the agent's act

Jorge enters into an agreement with Victoria, an interior designer, to remodel his house. Once Victoria has completed designing and decorating the house, she no longer has the authority to act on Jorge's behalf. Under the given circumstances, the agency terminated due to:

fulfillment of purpose.

Disparate treatment is sometimes referred to as ________blank discrimination, and disparate impact is often referred to as ________blank discrimination.

intentional/unintentional

The process by which the board of directors converts the corporation's assets into cash and distributes them among the corporation's creditors and shareholders is referred to as ________blank.

liquidation

The duty of ________blank is the generally considered the most important duty an agent owes to a principal.

loyalty

Why, by operation of laws, does an agency agreement terminate if the agent, unknown to the principal, acquires interest against the principal's interest?

Disloyalty of agent

Agency laws are relevant to three types of business relationships. Which of the following is not one of those relationships?

Employee-independent contractor

________blank is perhaps the most important consideration a court makes when determining whether a worker is an employee or an independent contractor.

Employer control

Which power of attorney allows the agent to conduct all business for the principal?

General power of attorney

A minimum number of directors, or ________blank, must be present at each directors' meeting for the decisions to be valid.

a quorum

A(n) ________ relationship consists of trust, confidence, and good faith.

fiduciary

Directors and officers have several duties. One of these duties is the ________blank to make informed and reasonable business decisions.

fiduciary duty

Criteria for determining whether an agent is an employee or an independent contractor does not include:

fiduciary duty status.

Someone claiming age discrimination in employment under the Age Discrimination in Employment Act (ADEA) must be age ________blank or older, and the employer's business must have _______ or more employees.

40; 20

Which of the following is not a type of lawsuit that a shareholder may bring against the corporation?

Breach of duty suit

Title VII of the ________blank prohibits employers from firing employees on the basis of racial discrimination.

Civil Rights Act of 1964

Which of the following statements is true of the liquidation phase of termination?

In cases of voluntary dissolution, liquidation duties fall on the board of directors.

How is a principal classified if the third party is aware of the principal's existence but not his or her identity?

Partially disclosed

A dissenting shareholder has a right to have his/her shares appraised and to receive monetary compensation from the corporation for their value. This is referred to as a(n) ________blank.

appraisal right

When multiple shareholders have suffered damages caused by the same act of a corporation, the shareholders can bring a ________blank suit against the corporation.

class action

Principal-agent relationships are most significant for issues that are included in the category of ________blank law. Multiple Choice

contract

Linda hires Roy to build a shed in her backyard. Before Roy begins, the city council passes a law making it illegal to build storage units on any property in the city. The new law ________blank the agency agreement.

terminates

A shareholder who receives ________blank stock is liable for the difference between the price he or she paid for the shares and their stated corporate value.

watered

When an employer can fire an employee ________blank, at-will employment is implied.

without any reason