ACCT 324 Chapter Multiple choice questions
What is the federal minimum wage?
$7.25
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
Which of the following is not a state-created exception to the employment-at-will doctrine allowing an employee to sue for wrongful discharge? A) Implied-contract B) Public policy C) Implied covenant of good faith and fair dealing D) Quasi-contract
Quasi-contract
__________ sexual harassment cases occur when a supervisor makes a sexual demand on someone of the opposite sex and this demand is reasonably perceived as a "term or condition" of employment
Quid pro quo
Which of the following are the categories protected by Title VII?
Race, color, religion, sex, and national origin
The doctrine of ______ applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.
Respondeat superior
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 __________
Right-to-sue letter
Which of the following is the most popular form of business ownership in the U.S.?
Sole proprietorship
A __________ power of attorney grants the agent express authority over specifically-outlined acts, while a __________ power of attorney allows the agent to conduct all business for the principal
Special; General
If an agent makes a(n) __________ departure from the course of the employer's business, the employer is not liable
Substantial
An investment group that comes together for the explicit purpose of financing a specific large project is a(n) __________
Syndicate
The school band hired Anna, an experience seller, to sell their cookbooks to raise band money. While Anna has sold a substantial number of books for the band, she has also incurred many airplane and travel expenses. The band terminates Anna.
The band must directly communicate notice of Anna's termination to all third parties known to have dealt with Anna.
Which of the following occurrences is not covered by the Family and Medical Leave Act? A) The birth of a child B) The adoption of a child C) The care of a seriously ill friend D) A serious health condition that renders the employee unable to perform any of the essential functions of his/her job
The care of a seriously ill friend
To recover workers' compensation benefits, the injured party must demonstrate A) He/she is an employee B) He/she works for a private employer C) The injury occurred on the job D) A. and C. only
A and C only: -He/she is an employee -The injury occurred on the job
Which of the following would likely be formed by farmers who want to pool certain crops together to ensure that they get a high market price for their crops?
A cooperative
Which of the following 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?
A joint stock company
Which of the following offers tax advantages of a partnership and liability advantages similar to a corporation, but allows for unlimited shareholders?
A limited liability company
Tom, a third party, knows Abe is an agent, but Tom does not know the identity of Abe's principal. The principal for whom Abe acts is:
A partially disclosed principal
Apparent agency is also known as __________
Agency by estoppel
Which of the following is another name for apparent agency?
Agency by estoppel
When an agent acts under the emergency authority, court's recognize the agent's act as:
Agency by operation of law
In an agency relationship, the __________ is authorized to act for and on behalf of the __________, who hires the __________ to represent him/her
Agent, Principle, Agent
Employees are __________ of an employer
Agents
Which of the following is not an occurrence that will terminate an agency relationship? -death -insanity -bankruptcy -all of the above
All of the above
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
As set forth in the text, which of the following is false regarding agency law in relation to sports agents?
Efforts are underway to develop a uniform act addressing regulation of sports agents because none exists at the present time
If an agent has misrepresented herself, the third party may
Either: -Cancel the contract with the principal and be compensated for money lost -Affirm the contract and sue the principal to recover damages
Which of the following is not a type of independent contractor?
Elementary school teacher
Which of the following is required by federal law in regard to holidays
Employees are not guaranteed any holidays off or any extra pay for working holidays under federal law.
Jones is in the construction business. Jones has been hired to build an office building in a heavily wooded area. Jones hires Barnes Bulldozing to clear the land. The business relationship between Jones and Barnes is:
Employer and independent contractor
Under the Federal Unemployment Tax Act (FUTA,) __________ pay taxes to the __________, which deposit the money into the __________ government's Unemployment Insurance Fund
Employers, States, Federal
An agency relationship is a(n) __________ relationship of trust, confidence, and good faith
Fiduciary
In a(n) __________ partnership, partners divide the profits (usually equally) and management responsibilities and share unlimited personal liability for the firm's debts
General
Which of the following allows an agent to conduct all business for the principal?
General power of attorney
A __________ agent is one who acts without consideration
Gratuitous
__________ work environment is a recognized form of sexual harassment
Hostile
Which of the following is false regarding classification of principals?
If the third party is aware of the principal's existence but not his or her identity, the principal is classified as a disclosed principal.
Which of the following is false regarding a general partnership?
In most cases partners do not have personal liability for losses
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
A(n) __________ is a person who contracts with another to do something for him/her, but who is not controlled by the other nor subject to the other's right to control with respect to his/her physical conduct in the performance of the undertaking
Independent contractor
Which of the following is false regarding the employer-employee relationship?
Independent contractors fall under the employer-employee relationship
What is not an advantage of the partnership? A) Ease of creation B) Income of business is considered personal income (of the partners) C) Business losses can be deducted from taxes D) Individual partner liability for all partnership losses
Individual partner liability for all partnership losses
Disparate treatment is sometimes referred to as __________ discrimination
Intentional
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
Joint stock company
Commonly-recognized defenses to claims under Title VII of the Civil Rights Act of 1964 include all but which of the following? A) Bona fide occupational qualification B) Merit C) Seniority D) Judicial fiat
Judicial fiat
A(n) __________ partnership is an agreement between at least one general partner and at least one limited partner
Limited
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. A) Hoffa B) Taft-Hartley C) Landrum-Griffin D) None of the above
None of the above
If an agent commits a crime in the scope of his or her employment without authorization from the principal, the principal is __________ liable for the crime
Not
Which of the following is a voluntary association between two or more persons who co-own a business for a profit?
Partnership
Which of the following is not a prohibited type of discrimination in violation of The Civil Rights Act of 1964? A) Race B) Religion C) Personal appearance D) National origin
Personal appearance
Which of the following is not an advantage of a sole proprietorship? A) Creation is easy B) Proprietor is personally liable for all losses C) Proprietor is in total control of management D) Proprietor keeps all profits
Proprietor is personally liable for all losses
If you decide to go into business on your own, you are creating a sole __________, an unincorporated business organization in which you, as the sole owner, are in complete control of the management and profits of the business
Proprietorship
Which of the following is true regarding the rights of an employer who is held liable and pays a third party, not because of the employer's negligence, but under the doctrine of respondeat superior based upon negligence of an employee?
The employer has the right to recover all amounts paid from the negligent employee
When an employee commits a tort within the scope of the agency, which of the following is true regarding liability of a principal who controls the employee's behavior?
The employer is liable
Under The Employee Retirement Income Security Act (ERISA), employers must provide pension and health plan participants with all but which of the following? A) Plan information, including features and funding of the plan B) The option of selecting an employer-administered "defined benefit" plan C) Assurances that those in charge of managing plan assets have fiduciary responsibility D) A grievance and appeals process for participants to get benefits from their plans
The option of selecting an employer-administered "defined benefit" plan
Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?
The principal is not liable on the contract
Which of the following is not a requirement for agency by ratification?
The principal must have incomplete knowledge of all material facts regarding the contract
Which of the following is not a defense available to employers charged with age discrimination under the Age Discrimination in Employment Act?
The qualified but aged defense
Which of the following refers to an employer's right, if any, to recover from an employee damages the employer paid a third party as a result of the employee's negligence?
The right of indemnification
Which of the following is true regarding S corporations?
They may be formed under federal law
Which of the following is false regarding workers' compensation?
Workers retain the option to sue their employers for negligence for work-related injuries.
Starr is an agent of a discloses principal, Maple. On May 1, Starr entered into an agreement with Kings Corp. on behalf of Maple that exceeded Starr's authority as Maple's agent. On May 5, King learned of Starr's lack of authority and immediately notified Maple and Starr that it was withdrawing from the May 1 agreement. On May 7, Maple ratified the May 1 agreement in its entirety. If King refuses to honor the agreement and Maple brings an action for breach of contract, Maple will:
lose. King notified Starr and Maple of its withdrawal prior to Maple's ratification
Which of the following is true regarding discrimination based on sexual orientation?
While there is no federal law specifically prohibiting discrimination based on sexual orientation, some s
An S corporation cannot have more than __________ shareholders
100
The Age Discrimination in Employment Act applies to private employers having ______ or more employees.
20
Under the 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; 12 months
The Age Discrimination In Employment Act of 1967 (ADEA) was enacted to prohibit employers from refusing to hire, discharging, or discriminating in terms and conditions of employment against employees or applicants age __________ or older
40
The Fair Labor Standards Act mandates that employees who work more than __________ hours in a week be paid no less than __________ times their regular wage for all hours they work beyond __________ during a given week
40; 1.5; 40
When a third party is aware an agent is making an agreement on behalf of a principal and also knows who the principal is, the principal is said to be __________
Disclosed
Which of the following may an agent demand if the agent believes that he or she is not being properly compensated?
An accounting
Which of the following is true regarding the status of an agent as a fiduciary?
An agent is a fiduciary to the principal
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
Avoidance
Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent?
Compensation will be calculated according to the customary fee in the situation
In the area of employee testing, which of the following measures a psychological trait needed to perform a job?
Construct validity
An agency __________ is a special kind of agency relationship created for the agent's benefit, not the principal's
Coupled with interest
Which of the following is a true statement regarding discrimination based on sexual orientation? A) Discrimination based on sexual orientation is not an actionable claim B) Currently, there is no federal legislation that prohibits discrimination based on sexual orientation C) North Carolina was the first state to enact legislation prohibiting discrimination based on sexual orientation D) Forty-one (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 and licenses a dealer to sell it in an exclusive territory
Distributorship
Proving disparate-treatment discrimination involves all but which of the following steps? A) Plaintiff-employee must demonstrate a prima facie case of discrimination B) Defendant-employer must articulate a legitimate, non-discriminatory business reason for the action C) Defendant-employer must demonstrate the existence and use of a legitimate affirmative action plan D) Plaintiff-employee must show that the reason given by the defendant-employer is a "mere pretext"
Defendant-employer must demonstrate the existence and use of a legitimate affirmative action plan
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
Durable
Agency relationships can be created based on all but which of the following forms of authority? -expressed agency -durable agency -implied authority -ratification
Durable agency
A ______ 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.
Durable power of attorney
Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?
Durable power of attorney
Which of the following is the term used to identify the duty of an agent to perform specified duties with reasonable skill and care?
Duty of performance
Assume that Mike hires Candy, a real estate broker, to sell his house. If the house burns down before being sold, then:
The agency relationship will be terminated (operation of law; destruction of subject matter)
Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?
The agent is released from liability to the third party
If a third party does not know an agent is acting on behalf of a principal, the principal is said to be __________
Undisclosed
Disparate impact is often referred to as __________ discrimination
Unintentional
Suppose that Arnold Agent contracts without authorization on behalf of Peter Principal to have the renowned house painter El Flecko paint both the interior and exterior of Peter's house. Peter is delighted with the idea that one as talented as El Flecko will be painting his house but he wishes to have El Flecko paint on the interior of the house due to El Flecko's extremely high fee. Peter's attempt to ratify that part of the contract relating to the interior of the house will be:
Unsuccessful, since ratification of a contract must be done in its entirety.
Which of the following is not available as a remedy under Title VII?
Up to three years of back pay
All but which of the following categories of employees are excluded from coverage under the Fair Labor Standards Act? A) Executives B) Administrative employees C) Wage employees D) Professional employees
Wage employees
In a __________-style business operation, the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation
chain