ACCT 324 Quiz Questions Exam 2

Under Family and Medical Leave Act (FMLA), an "eligible employee" is one who has worked at least ___ hours per week for each of the ____ prior to the leave: 25 hours, 6 months; 25 hours, 12 months; 40, 6 months; 40, 12 months

25 hours, 12 months

If occupational safety and health act (OSHA) inspectors find violations in the workplace, they may issue citations. Penalties for violations may range from $0 to ____ per violation, depending on the likelihood that the violation would lead to serious injury to an employee: 70,000; 75,000; 100,000; 150,000

70,000

"the fiduciary relationship that results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by other so to act"

Agency

Homeowner asks real estate broker to help sell her home, this creates an

Agency by implied authority

If an agent has misrepresented herself, the third party may: cancel the contact with the principal and be compensated for any money lost; affirm the contract and sue the principal to recover damages; all of the above; none of the above

All of the above

Board of directors of ____ corporations must approve; ____ of shareholders must approve of merger/consolidation

All; 2/3

This partner has no right to participate in the management and control of the business, their liability is limited to the amount of capital the partner contributed, is NOT an agent of the partnership

Limited Partner

3 primary functions: monitor conduct of employer and union; prevent and remedy unfair labor practices; establish rules interpreting the act. Has jurisdiction over all employees except federal, state, and local govt.

National Labor Relations Act (NLRA)

A ___ is an agreement that does not specify the objective or duration of the partnership: partnership at will; partnership by decree; unlimited partnership; durable partnership

Partnership at will

Which of the following is not a state-created exception to the employment-at-will doctrine allowing an employee to sue for wrongful discharge?: implied-contract; public policy; implied covenant of good faith and fair dealing; quasi-contract

Quasi-contract

___ consists of negotiations between an employer and a group of employees so as to determine the conditions of employment: collective bargaining; covenant dealing; informational picketing; omnibus control

Collective bargaining

Principal-agent relationships are most significant for issues that are included in the category of: Wage Law; Contract Law; Tort Law; or Discrimination

Contract Law

An agency ___ is a special kind of agency relationship created for the agent's benefit, not the principal's: Partnered with a principle; conjoined with principal and interest; coupled with an interest; joined with a principal

Coupled with an interest

Which of the following is a true statement regarding discrimination based on sexual orientation?: discrimination based on sexual orientation is not an actionable claim; currently, there is no federal legislation that prohibits discrimination based on sexual orientation; NC was the first state to enact legislation prohibiting discrimination based on sexual orientation; 41 states have laws protecting against discrimination based on sexual orientation

Currently, there is no federal legislation that prohibits discrimination based on sexual orientation

Through the ____ method of franchising, the franchisor manufactures a product licenses a dealer to sell it in an exclusive territory: partnership; licensing; proprietorship; distributorship

Distributorship

A ____ power of attorney is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity: Standard; Permanent; Durable; General

Durable Power of Attorney

This duty puts corporation interest above their own when making business decisions

Duty of Loyalty

This duty is to exercise care when making decisions, act in good faith

Duty of care

Which of the following, as suggested by the courts, is the most important duty an agent owes to the principal?: UDty of performance; duty of loyalty; duty of notification; duty of obedience

Duty of loyalty

The only time a principal can be liable for crime of an agent is if the principal ___ the act

authorized

Which of the following primarily governs the internal operations of labor unions?: the Landrum-Griffin act; the taft-hartley act; the employment-at-will doctrine; the wagner act

The Landrum-Griffin Act

____ are investment banking firms that purchase securities from an issuing corporation with the intent to sell them to brokerage houses, which then sell them to the public: subscribers; wayfarers; overlords; underwriters

Underwriters

Which of the following statements is true of the liability of incoming partners?: a new partner has no liability for any obligations that occurred before he or she was added; a new partner can be held personally liable for the obligations that occurred before he or she was added; the capital a new partner adds cannot be used to pay off debts that occurred before he or she was added; a new partner assumes limited liability for any obligations that occurred before he or she was added

a new partner assumes limited liability for any obligations that occurred before he or she was added

A ____ is a person who has a duty to act primarily for another person's benefit: Surety; Fiduciary; Guarantor; Conservator

Fiduciary

form of business organization that exists because of an arrangement between franchisor, owner of trade name or trademark, and the franchisee

Franchise

This partner has all rights associated with controlling the business, has unlimited personal liability, and acts as an agent of the partnership

General Partner

Broad authority granted

General Power of attorny

If a third party is able to establish employee negligence such that the employer is liable, the employer has the right to recover from the employee any damages he paid to the third party; such right to recover damages is referred to as the right of ____ : indemnification; contribution; litigation; equity

Indemnification

Independent contractor injures an innocent bystander

Independent contractor is liable

Which of the following is true of the remedy of specific performance?: It can be used by the agent when the agency relationship is not contractual; it can be used by the agent to recover for services rendered and/or future damages; it can be used by the agent to force the principal to fulfill specific contractual agreements; it can be used by the agent to force the principal to continue to employ him or her

It can be used by the agent to recover for services rendered and/or future damages

Which of the following is true of agency law?: It is standardized and is the same from state to state; it is included under the category of customary law; it is primarily state law; it is included under the category of federal law

It is primarily state law

relationship between 2 or more people or corps created for a specific undertaking

Joint Venture

____ means a third party can choose to sue the partners separately or all partners jointly in one action if a partner commits a tort or a breach of trust: several liability; joint liability; joint and several liability; accounting liability

Joint and several liability

A ____ is a partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners: cooperative; syndicate; business trust; joint stock company

Joint stock company

According to the Uniform Partnership Act (UPA), if a partnership is liable, each partner has unlimited personal liability. That is, all partners are ___ liable for the partnership's debts: conditionally; equitably; jointly; constitutionally

Jointly

Commonly-recognized defenses to claims under Title VII of the civil rights act of 1964 include all but which of the following: bona fide occupational qualification; merit; seniority; judicial fiat

Judicial fiat

2 criteria for creation of agency relationship

Lawful purpose; legal capacity

A ___ occurs when a group within a corporation (usually management) buys all outstanding corporate stock held by the public: leveraged buyout; field acquisition; summit divestiture; none of the above

Leveraged buyout

This type of company is like a limited partner where partners have limited liability but each member has say in management of the business

Limited Liability Company (LLC)

franchisor provides franchisee with formula or necessary ingredient to manufacture a product

Manufacturing arrangement

After the dissolution of a partnership, the remaining partners____: may not continue the partnership; may continue the partnership but only by filing revised articles of partnership with the Secretary of State; May continue the partnership

May continue the partnership

occurs when a legal contract COMBINES two or more corporations so only one continues to exist

Merger

certain circumstances where employer can test someone's ability if it is criterion related, content valid, and construct valid

Merit Defense

Manage day-to-day business; agents

Officers

Under this, both the agent and principal are liable: 3rd party is unaware of the principal's identity but knows there is an agency

Partially Disclosed Principal

A ___ is a review and listing of all partnerships assets and/or profit and lists the distribution of assets and profits to the partners: management report; reference report; charging order; accounting

Accounting

If it becomes impractical to carry out the business of the partnership, a partner may seek to dissolve the partnership by ____: operation of law; act of the court; act of the legislature; operation of equity

Act of the court

employer can discriminate on basis of sex, religion, or national origin (i.e. employer only wants female to model female clothing)

Bona fide occupational qualification

The Insider Trading and Securities Fraud Enforcement Act of 1988 subjects more individuals to civil liability for insider trading and grants the SEC power to award ___ (government rewards for acts beneficial to the public) to insider-trading "whistle-blowers": In-kind transfers; finder's fees; recoupment certificates; bounty payments

Bounty payments

Which of the following statements is true of independent contractors?: Building contractors, doctors, stockbrokers, and lawyers are types of independent contractors; all independent contractors are agents; independent contractors can enter into contracts on behalf of the principal even without the authorization from the principal; employers are generally liable for the actions of independent contractors

Building contractors, doctors, stockbrokers, and lawyers are types of independent contractors

Provides that directors and officers are not liable for decisions that harmed corporation if they were acting in good faith at the time of decision

Business Judgment Rule

a business organization controlled by a group of trustees who operate the trust, according to a written agreement, for the beneficiaries

Business Trust

According to the ___ rule, directors and officers are not liable for decisions that harm the corporation if they were acting in good faith at the time of the decision: responsible person; fair dealing; business judgment; good samaritan

Business judgment

To created a valid limited partnership, the general and limited partners must sign a ____ and file this with the secretary of state: partnership agreement; article of incorporation; certificate of limited partnership; annual report

Certificate of limited partnership

the franchise operates under the franchisor's business name and is required to follow the standard and methods of business operation

Chain franchise

do not offer stock to general public

Closely held

a business organization consisting of individuals who join together to gain an advantage in the market that mutually benefits all members

Co-op

Legally combine two or more corporations to form a new corporation

Consolidations

Legal entity formed by selling shares of stock to investors, who then become shareholders and owners of the company

Corporation

When directors or officers violate their duty of loyalty, they are self-____L aggrandizing; effacing; promoting; dealing

Dealing

Proving disparate-treatment discrimination involves all but which of the following steps?: plaintiff-employee must demonstrate a prima facie case of discrimination; defendant-employer must articulate a legitimate, non-discriminatory business reason for the action; defendant-employer must demonstrate the existence and use of a legitimate affirmative action plan; Plaintiff-employee must show that the reason given by the defendant-employer is a "mere pretext"

Defendant-employer must demonstrate that the existence and use of a legitimate affirmative action plan

If corporate directors fail to sue when the corporation has been harmed by an individual, another corporation or a director, individual shareholders who held stock at the time of the alleged wrongdoing can file a shareholder's ____ suit on behalf of the corporation: Preemptive; derivative; discretionary; none of the above

Derivative

Decision makers; share power of deciding the course of action for the corporation; appoint officers

Directors

Under this, the principal is liable, not the agent: 3rd party is aware that the agent is making an agreement on behalf of a principal and knows the principal's identity

Disclosed Principal

unintentional discrimination that occurs when an employer sets a requirement for employment that inadvertently precludes large numbers of a protected class

Disparate impact

Intentional discrimination; occurs when an employee is treated differently on basis of being a member of a protected class

Disparate treatment

franchisor manufactures a product and licenses a dealer to sell it in exclusive territory

Distributorship

This duty requires you to disclose your self interest and abstain from voting

Duty to disclose conflict of interest

When an agent makes authorized expenditures in the course of working on behalf of the principal, and the principal refuses to pay the agent, the principal is violating his or her: duty of accounting; duty of performance; duty to reimburse; duty to compensate

Duty to reimburse

Under the Federal Unemployment Tax Act (FUTA) _____ pay taxes to the ____, which deposit the money into the _____ government's Unemployment Insurance Fund: Employees, states, federal; employers, states, federal; employees, federal government, state; employers, federal government, state

Employers, states, federal

TF: the articles of incorporation from original companies are still legally binding to the new corp

FALSE

Covers all public employers as well as private employers >50 employees; guarantees all eligible employees up to 12 weeks unpaid leave for; employee must be put in same position or one of equal skill

Family and Medical Leave Act (FMLA)

The ___ Act, passed in 1935, created a state system to provide unemployment compensation to qualified employees who lose their jobs: unemployment insurance trust fund financing; fair labor standards; amended unemployment insurance; federal unemployment tax

Federal unemployment tax

Created for private purposes and do not have government duties

Private Corporations

Corporation created by the government to help administer law, often have specific government duties to fulfill

Public corporation

stock available to public

Publicly Held

Frank looks at a car "for sale" because friend Mike wants to buy similar car. Frank tells owner that Mike will buy car and signs contract on Mike's behalf. Mike did not name Frank as an agent but can _____ the agency

Ratify/agency by ratification

A ____ prospectus is a prospectus with a warning written in ___ print at the top of the page warning investors that the registration statement has been filed with the securities and exchange commission but not yet approved: scarlet pimpernel, red; red herring, red; red storm, red; none of the above

Red herring, red

Because the relationship between corporations and their directors, officers, and employees is an agency relationship, corporations are liable for torts and crimes committed by their agents during the scope of their employment. Courts refer to this liability as the doctrine of: absolute liability; strict liability; respondeat superior; respondeat inferior

Respondeat superior

according to the ___ doctrine, a court may find a corporate officer criminally liable regardless of the extent to which the officer took part in the criminal activity: Responsible person; irresponsible person; contributory negligence; comparative negligence

Responsible person

If the Equal Employment Opportunity Commission decides not to sue, it notifies the plaintiff-employee of his/her right to file an action, and issues the plaintiff-employee a ____: formal letter of apology; consolation letter; right-to-sue letter; default judgment

Right-to-sue letter

employees given preferential treatment based on length of service MUST apply legally to all persons, follow industry practices, no discrimination, no illegal discrim

Seniority System Defense

Unwelcomed sexual advances, requests for sexual favors

Sexual harassment

Occurs when a parent corp merges with a subsidiary corp

Short form mergers

gives authority only for the specific areas listed in agreement

Specific power of attorney

Promoters begin the corporate creation and organization process by arranging for necessary capital, financing, and licenses. They raise capital for the infant corporation by making ____ agreements with ____ who agree to purchase stock in the new corporation: Licensing, licensees; partnership, limited partners; script, scribes; subscription, subscribers

Subscription, subscribers

Amended the Wagner act to limit some of the powers of unions; adopted explicitly to encourage formation of labor unions and provide collective bargaining

Taft Hartley Act

Which of the following establishes the rules for partnership in the absence of an express partnership agreement?: the articles of partnership; the Uniform Partnership Act; the certificate of limited partnership; the consolidated omnibus budget reconciliation act

The Uniform Partnership Act

Which of the following statements is true of the right of survivorship?: the rights in specific partnership property pass to the surviving partners; the surviving partners need not necessarily account to the deceased partner's estate for the value of that partner's interest in specific property; a partner's share of profits and a return of capital contributed by the partner pass to the surviving partners

The rights in specific partnership property pass to the surviving partners

TF S Corps avoid double taxation

True

TF informal documents can be used to identify existence of partnership if no articles of partnership exist

True

TF short form mergers of corporations do not require shareholder approval

True

TF: In an undisclosed or unidentified agency, if the principal is not expressly included in the contract, the principal bears no liability

True

TF: principal must have complete knowledge of material facts and principal must ratify the entirety of the agent's act

True

TF: the surviving corp of a merger becomes liable for all debts and obligations of the absorbed corp

True

The agent is liable to the 3rd party, but the principal is liable to the agent; 3rd party does not know that an agent is acting on behalf of a principal

Unidentified Principal

In a ____ partnership, partners divide the profits (usually equally) and management responsibilities and share unlimited personal liability for the firm's debts: Corporal; General; Limited; Unlimited

Unlimited

A 3rd party is injured through negligence of employee/agent

Vicarious Liability

The first major piece of federal legislation adopted explicitly to encourage the formation of labor unions and provide for collective bargaining was the: Taft-Hartley; landrum-griffin; wagner; omnibus crime control and safe streets

Wagner

A shareholder who receives ___ stock, or stock issued below its fair market value, is individually liable for the difference between the price she paid for the shares and their stated corporate value: Split; diluted; watered; subsidized

Watered

The Fair Labor Standard Act requires that: employees of both sexes be paid a minimum wage of 5.55; covered employees be paid one and one-half times their regular wages for hours worked in excess of 30 in one week; a minimum wage of a specified amount be paid to all employees in covered industries; executives be paid by their employees for double time

a minimum wage of a specified amount be paid to all employees in covered industries

A gratuitous agent is one who: finds a buyer for one party and a seller for another; freely substitutes his or her judgment for that of the principal; acts without consideration; is paid for his or her services

acts without consideration

Under the ___, partnership assets are arranged in a certain order to pay any outstanding debts: doctrine of estoppel; doctrine of legal aggregate; doctrine of worthier title; doctrine of marshaling assets

doctrine of marshaling assets

Payment from the sale of ____ of a business or some other property is not a partnership

goodwill

When a breach of contract is caused by an agent's negligence, a principal: must enact a constructive trust; has a right of avoidance; cannot utilize tort remedies; has a right to indemnification

has a right to indemnification

When a party receives a share of profits for payment from the sale of goodwill of a business or some other property, there is: no partnership; a limited liability partnership; a voluntary and consensual partnership; a limited partnership

no partnership

The first major piece of federal legislation adopted explicitly to encourage the formation of labor unions and provide for collective bargaining between employers and unions as a means of obtaining the peaceful settlement of labor disputes was the ___ Act: Hoffa; tart-hartley; landrum-griffin; none of the above

none of the above

If an agent commits a crime in scope of his/her employment without authorization, the principal is _____

not liable

An agent who makes an unauthorized agreement has failed to meet the duty of: cooperation; performance; obedience; accounting

obedience

supervisor makes sexual demands that are perceived as term of condition of employment

quid pro quo sexual harassment

A limited partner's limited personal liability depends on all but which of the following conditions?: The limited partner has complied in good faith with the requirement that a certificate of limited partnerships is filed; the limited partner has education, skill and experience in the nature of the limited partnership business; the limited partner does not participate in the control of the business; the limited partner's surname is not party of the partnership business

the limited partner has education, skill, and experience in the nature of the limited partnership business

The Family and Medical Leave Act (FMLA) covers: the birth but not the adoption of a child; the placement of a foster child in an employee's care; public employers but not private employers; newly joined employees who have an experience of one month

the placement of a foster child in an employee's care

Disparate impact is oftn referred to as ___ discrimination: intentional; unintentiaonal; consqeuential; retributive

unintentional

According the OSHA, employers: in low-hazard industries such as retail and insurance must keep records of work-related injuries and illnesses; have a general duty to develop and enforce independent health and safety programs; with 11 or more employees must keep records of work-related injuries and illnesses; must provide reasonable leave periods for a family-related health issues

with 11 or more employees must keep records of work-related injuries and illnesses

A S-corp cannot have more than ____ shareholders: 25; 50; 75; 100

100

Parties form the agency relationship by making a written or oral agreement

Express agency

The SEC defines an accredited investor as which of the following?: any natural person who has a net worth of at least $1 million; any natural person who has a net worth of at least $2 million; any natural person who has a net worth of at least $3 million; any natural-born citizen of the United States

Any natural person who has a net worth of at least $1 million

Company president suggests that a salesman is a representative of their company; company must uphold any agreements the 3rd party made due to

Apparent Agency or Agency by estoppel

A _____ is a dissenting shareholder's right to have his/her shares appraised and to receive monetary compensation from the corporation for their value: appraisal right; accounting; equity right; quorum

Appraisal right

When an agent breaches an agency contract or his fiduciary duties, the principal may use her right of ___ to nullify at her discretion any contract the agent negotiated: Penance; Subrogation; Ratification; Avoidance

Avoidance

Which of the following is classified as termination by "operation of law": Bankruptcy; lapse of time; fulfillment of purpose; mutual agreement by the parties

Bankruptcy

According to the Revised Model Business Corporation Act (RMBCA), in which of the following situations can a secretary of state compel involuntary dissolution of a corporation?: the corporation failed to pay taxes within 20 days of the due date; the corporation failed to submit its annual report to the secretary of state within 30 days; the corporation did not have a registered agent or office in the state for 60 days or more; all of the above

The corporation did not have a registered agent or office in the state for 60 days or more

Under workers' compensation laws: the employees are not allowed to the employee injury costs; the covered workers injured on the job can receive financial compensation through an administrative procedure; the injuries occurring on the way to and from the job are within the course of employment, for which damages may be recovered; the only way workers can claim financial compensation is by suing their employer

The covered workers injured on the job can receive financial compensation through an administrative procedure

Which of the following is NOT a procedural requirement for a merger or consolidation: The boards of directors of all involved corporations must approve the merger or consolidation plan; the shareholders of all involved corporations must approve the plan by a vote at a shareholder meeting; the officers of all involved corporations must approve the plan by a "super-majority" vote; the involved corporations must submit the merger or consolidation plan to the secretary of state

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

An agent committed tort on a 3rd party; the act was either authorized by the principal or was ratified with knowledge it was illegal; the principal had given agent inadequate instructions/improper instruments

The principal bears liability for the tort

Which of the following is not a requirement for agency by ratification: An individual must misrepresent himself/herself as an agent for another party; the principal accepts the unauthorized act; the principal must have incomplete knowledge of all material facts regarding the contract; the principal must ratify the entirety of the agent's agent

The principal must have incomplete knowledge of all material facts regarding the contract

A ___ entitles a creditor to a partner's profits while the partner continues to act as a partner and engage in the partnership business: warrant of execution; charging order; attachments of earnings order; marshaling order

charging order

has complied in good faith with requirements of certificate of limited partnership; does not participate in control of the business; the limited partner's surname is not part of the partnership name. If any are violated the partner surrenders their limited liability

conditions for limited partners

Liquidating assets pays in this order

creditors, refund loans to partners, payment to partners for capital investment, payment of profits distributed

Which of the following statements is true of the right to compensation of partners in a partnership relationship?: when a partner dies during the term of a partnership, the surviving partners are not entitled to any compensation for services; partners do not possess the right to create salaries for any partner in a partnership agreement; partners cannot receive a salary irrespective of whether the other partners agree to pay a salary to that particular partner; partners do not enter into a partnership relationship with a right to compensation for performing business activities

partners do not enter into a partnership relationship with a right to compensation for performing business activities

Partnership is considered a legal aggregate of the partners when: it is treated as a "person" separate from the partnership with a life of its own; partnership debts eventually become the debts of the individual partners; it is sued or being sued; the partnership is taxed as a separate being

partnership debts eventually become the debts of the individual partners

Individuals who place themselves outside an employer's place of business for the purpose of informing passers-by of the fact(s) of a labor dispute are engaged in ____: primary boycotts; embargo; secondary boycotts; picketing

picketing

The public policy exception: provides that an implied employment contract may arise from statements the employer makes in public meetings; prohibits employers from firing employees engaged in activities that further the public interest; assumes that every employment contract contains an implicit understanding that the parties will deal fairly with one another; is limited to public activities such as serving on jury duty, doing military service, and filing for or testifying at hearings for workers' compensation claims

prohibits employers from firing employees engaged in activities that further the public interest