BLS342 Quiz 3
______ occurs when an employee appropriates funds of his employer to his own use.
Embezzlement
The Fifth Amendment protects the accused from being compelled to produce real or physical evidence.
False
The goal of the Sherman Act is to eliminate competition.
False
When the federal government enforces antitrust laws it uses both the Department of Justice and the Federal Trade Commission.
True
Which of the following is a taxable entity?
a corporation
Because corporations cannot be jailed, a federal sentencing commission developed special ______ for organizations convicted of federal crimes.
sentencing guidelines
The _________elect members of the board of _________, who set the objectives and goals of the corporation.
shareholders, directors
The Local Bar was a pub that used a special storage device that steals card numbers when processing its customers' credit and debit cards. Many such customers who visited the establishment later found that they were charged for goods and services they did not purchase. This scenario is an example of ______.
skimming
Margaret and her family, along with 200 other individuals, own Corporate Consulting, a consulting firm whose stock is traded on a public stock exchange. This is an example of a publicly held organization.
True
Maximum-price agreements are just as illegal as minimum-price agreements.
True
The Federal Trade Commission enforces the Clayton Act.
True
Which federal agency promotes dependable, affordable energy through sustained competitive markets?
the Federal Energy Regulatory Commission (FERC)
Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices?
the Federal Trade Commission (FTC)
To prove a pattern of racketeering under various specified federal statutes, the statute says that it requires at least
two acts of racketeering in a ten-year period.
To convict a person of a conspiracy, ______.
two or more people must be involved in the accomplishment of a common and unlawful plan
Business often fails to regulate itself, and the lack of self-regulation is contrary to the public interest. To counterbalance, administrative agencies exist to
protect the public, especially from the business community.
The classification of crimes as felonies or misdemeanors is based on the
punishment imposed if convicted.
Which of the following type of regulatory authority issues rules that have the impact of laws?
quasi-legislative
Thelma and Louise are out bar hopping on a Friday night. Thelma is driving to the next bar when Louise asks her to stop at a convenience store so she can "make a withdrawal." Thelma thinks that Louise is using an ATM when Louise pulls out a gun from her purse and holds up the store. Louise walks out of the store without firing any shots. The police arrest both at their next bar stop. Louise is guilty of
robbery
The ______, announced by the Supreme Court in Standard Oil Co. v. United States, holds that contracts or conspiracies in restraint of trade are illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act.
rule of reason
Which of the following is essential if limited partners are to be assured of their limited liability?
substantial compliance with all the technical requirements of the limited partnership law
The Securities and Exchange Commission (SEC) primarily functions as a(n) ______ body, which oversees the issue and sale of investment securities.
supervising
Louise Bouton, a designer and manufacturer, sells luxury shoes to stores across the nation including Lordstorms. Louise entered a contract with Lordstorms to price her shoes higher than any other shoes in the store and forced Lordstorms to lower the prices of similar luxury shoes. If a competitor files suit they would most likely allege Louise and Lordstorms engaged in a
vertical agreement in violation of the Sherman Act.
Resale price maintenance is also called ______.
vertical price fixing
Which of the following is true when determining the taxation of a business organization?
A single tax is not always better than a double tax.
In a(n) ______, the shareholders are taxed only on income distributed.
S corporation
A business is likely to shift away from the proprietorship form as it becomes more successful.
True
Aaron enters Stevenson's Supermarket and takes a loaf of bread from the shelf. He walks out of the store without paying for it. Which of the following is true of this situation?
Aaron is guilty of larceny.
Which of the following is the disadvantage of the corporate form of organization?
Corporate income may be subject to double taxation.
Which of the following is an advantage of the corporate form of organization?
Control of a corporation may be held by those with a minority of the investment.
Which of the following statements is true of a general partnership?
Each partner in a general partnership has an equal voice in the firm's affairs.
A limited partnership is solely made up of limited partners.
False
Administrative agencies have either quasi-legislative regulatory authority or quasi-judicial regulatory authority, but they cannot have both.
False
Advisory opinions of an administrative agency are as binding as formal rulings.
False
Family-owned and family-operated businesses are common examples of publicly held organizations.
False
Felony cases are commenced with the filing of an information, and misdemeanors are commenced by a grand jury indictment.
False
In exercising their investigative functions, administrative agencies are excluded from using subpoena powers.
False
In the context of criminal intent, knowledge can be easily established by demonstrating that the accused was negligent, careless, or foolish.
False
It is legal for small competitors to engage in price fixing to allow them to compete with larger competitors.
False
Private parties may bring criminal suits seeking monetary damages or injunction as a means of enforcing antitrust laws.
False
Sherman Act cases need not satisfy an interstate commerce element to be constitutionally valid.
False
The protection against compulsory self-incrimination safeguards a businessperson from having to produce records prepared in the ordinary course of business, because the records compel oral testimony.
False
The three hybrid forms of business organizations are sole proprietorships, partnerships, and corporations.
False
______ is a complete defense to fraud as it is inconsistent with the defendant's intent to defraud or willfulness, purposes essential to the charges.
Good faith
Which of the following statements is true of corporations?
In contrast to a partnership, corporations are usually formed to have perpetual existence.
With regards to an S corporation which of the following statements if true?
It does not pay any taxes.
Which of the following is true of the Occupational Safety and Health Administration (OSHA)?
It ensures all workers a safe and healthy work environment.
Which of the following statements is true of embezzlement?
It is a crime easily committed when there is a lack of internal control over funds.
Which of the following statements is true of a consent order?
It requires that the accused individual admit to the jurisdiction of an agency and waive all rights to seek a judicial review.
Which of the following statements is true of the functionality of agencies providing services?
Social Security programs necessitate that there be a federal agency to determine eligibility and pay benefits.
Which of the following is the basic difficulty of owning a minority interest in a closely held corporation?
There is no ready market for the minority stock should a shareholder desire to dispose of it.
Choose the statement below that is true of administrative agencies?
They are organizations created by the legislature to serve a specific purpose.
Which of the following statements is true of benefit corporations?
They combine aspects of non-profit and profit organizations in a way intended to permit a business to make a profit while pursuing explicit, socially oriented goals.
A defendant may enter a nolo contendere plea for which of the following reasons?
To give the defendant the advantage of avoiding the cost of trial.
According to the doctrine of the exhaustion of remedies, judicial review is available only for final actions by an agency.
True
All levels of government have grown larger and more complex in the twenty-first century.
True
All partners in a general partnership have unlimited liability for their organization's debts.
True
Courts develop the distinction between rule of reason and per se illegality on a case-by-case basis.
True
Defense counsel is not allowed to accompany a witness before a grand jury.
True
Expertise beyond Congress is required to develop sound policies and proper decisions in response to problems in different areas regulated by the law.
True
Felonies are punishable by fine or imprisonment in a penitentiary for a period of one year or more.
True
For the courts to exercise their function of limited review, an agency must provide a record that sets forth the reasons and basis for its decision.
True
Grand jurors may subpoena business records.
True
Horizontal price fixing is illegal per se and it is no defense that the prices fixed are fair or reasonable.
True
In a limited liability company (LLC), members act as agents of the LLC but are not personally liable to third parties.
True
In civil law, the doctrine of res judicata bars subsequent civil actions involving the same parties, claims, demands, or causes of action.
True
Members of a limited liability company (LLC) who dissent with respect to decisions made on behalf of the LLC may not bring a derivative lawsuit or sell their shares.
True
The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and an organization to fail.
True
The general language used in delegating quasi-judicial authority usually involves grants of substantial discretion to an agency.
True
The only business protected by the Fifth Amendment privilege against compulsory self-incrimination is a sole proprietorship.
True
The primary focus of policymaking by way of regulation has been on balancing the costs of regulatory programs with their potential benefits.
True
There are three groups who control an organization in corporate form; the shareholders, the board of directors, and the officers.
True
To analyze potential violations of the Sherman Act, the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions.
True
To establish standing, the challenging party must address issues relating to the reviewability of a decision and the aggrieved party involved.
True
White-collar crimes usually occur in a business or professional setting and are generally committed for personal financial gain.
True
The ______ function of an administrative agency involves both fact-finding and applying law to the facts.
adjudicating
Isla, a manager at a casino, assists a group of people to rob the place by drawing a floor plan of the casino. Isla did not take part in the actual robbery. Isla could be most likely found guilty of ______.
aiding and abetting
If a person acts under the direction of someone accused of criminal activities, this person might be guilty of ______.
aiding and abetting others
A corporation created under the authority of a foreign country may be called a(n) ______.
alien corporation
The ______, by which the corporate veil can be pierced, may also be used to impose personal liability upon corporate officers, directors, and stockholders.
alter-ego theory
Secrecy of the grand jury system protects
an innocent accused from disclosure of the accusations made against him or her.
Steve has been trying hard to get a certain building contract for his company. He talks to the government official who is managing the building contract allotment. Rico promises the official a 'treat' if he directs the contract to Rico's company. Rico can be found guilty of ______.
bribery
In a closely held corporation, the majority shareholders
can control election of a board of directors.
The Federal Reserve Board (FRB) found that Parson Inc., a newly established financial company, had violated banking laws. The company was involved in transactions that were prohibited by the United States government. Along with imposing a hefty fine, the FRB issued an order on Parson to stop the nature of such objectionable transactions and ordered the firm to refrain from indulging in such transactions in the future. This order is an example of a(n) ______.
cease and desist order
Which of the following is an order that an agency imposes on a violator to stop an objectionable activity and refrain the violator from any further violations?
cease and desist order
Which of the following terms denotes the rights that protect individuals from the power of the government, including individuals accused of crimes?
civil liberties
As a creature of state legislative bodies, a ______ is much more complex to create and to operate than other forms of businesses.
corporation
White-collar crime can be detrimental to a business so some major corporations have ______________ in order to combat the effects of criminal activity.
developed ethical codes and compliance programs
Administrative agencies are needed to provide all of the following except_______.
discretion
Administrative law judges are
employed by the agency that is in charge of hearing the initial presentations.
The government relies on administrative agencies for ________, which is/are necessary to develop sound policies and provide solutions and management for problems.
expertise
The Bike Shop and Road Warriors are fierce competitors in the national bike market. They compete in everything from parts to clothing to bicycles. Due to decreasing sales, the companies make an agreement to share product information and pricing to ensure that the market contains similar items at similar prices lower than their competitors. This action is most likely to be considered a
horizontal agreement in violation of the Sherman Act.
The president of a bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. Which of the following is indicated in this scenario?
horizontal price fixing
One advantage of a partnership is that
it may operate in more than one state without obtaining a license to do business.
Despite the advantages, there is some concern that the overuse of deferred prosecution agreements could
lead to an overly lenient environment for addressing corporate malfeasance.
Albert falsely reports his income obtained from betting on racehorses as income obtained from his job at Good Life Supermarket. Albert is guilty of ______.
money laundering
The use of sole proprietorships is very limited because
multiple owners cannot create a proprietorship.
Which of the following refers to nolo contendere?
no contest
Pretending to be a financial institution in order to get individuals to reveal their personal information is called ______.
phishing
When courts find that a corporate organization is being misused, the corporate entity can be disregarded. This has been called
piercing the corporate veil.