ACCT 324 Connect Questions
Which of the following is true of the requirements to be met by an S corporation?
No shareholders can be a nonresident alien
_____ means agreeing to substitute a third party for one of the two original parties in a contract and terminating the rights under it.
Novation
Which of the following statements is true of the right to compensation of partners in a partnership relationship?
Partners do not enter into a partnership with a right to compensation for performing business activities
Which of the following is an implied power of corporations?
Power to take whatever actions are necessary to execute express powers
Which of the following is excluded from a franchise agreement?
Price at which the franchise sells the goods
The first major piece of federal legislation adopted explicitly to encourage the formation of labor unions and provide for collective bargaining was the _____ Act.
Wagner
Which of the following circumstances leads to the dissolution of a partnership by the operation of law?
When a partner is adjudicated bankrupt
An agency relationship
can be created only for a lawful purpose
An agent who feels that he or she is not being properly compensated, especially when working on commission:
can demand an accounting
A(n) _____ entitles a creditor to a partner's profits while the partner continues to act as a partner and engage in the partnership business.
changing order
When more than one shareholder has suffered damages caused by the same act of a corporation, the shareholders can bring a _____ suit against the corporation.
class action
At the winding up stage, the partner who decides to terminate the partnership:
completes unfinished partnership business
The Age Discrimination in Employment Act (ADEA) of 1967 applies to:
employees or applicants of age 40 or older
A plaintiff proves a disparate impact case by first:
establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class.
When a principal falsely leads a third party to believe that another individual serves as his or her agent, the principal has created agency by:
estoppel
The secretary of state can compel involuntary dissolution when a corporation:
fails to notify the secretary of state within 60 days that its registered agent or registered office had changed.
A ______ is a person who has a duty to act primarily for another person's benefit
fiduciary
Joshua enters into an agreement with Cathy, an interior designer, to redo his house. Once Cathy has completed designing and decorating the house, she no longer has the authority to act on Joshua's behalf. Under the given circumstances, the agency terminated due to:
fulfillment of purpose
A(n) ______ typically allows the agent to conduct all business for the principal
general power of attorney
When a breach of contract is caused by an agents negligence, a principal:
has a right to idemnification
A _____ is a relationship between two or more persons or corporations created for a specific business undertaking.
joint venture
A _____ occurs when a group within a corporation (usually management) buys all outstanding corporate stock held by the public.
leveraged buyout
When partners have created a _____, all the partners assume liability for one partner's professional malpractice, but only to the extent of the partnership's assets.
limited liability partnership
Which of the following is true of the rights given to limited partners in a limited partnership?
limited partners have the right to share in the profits of the business
Business self-dealing occurs when a director or officer:
makes decisions that benefit other companies with which he has a relationship with
A _____ occurs when a legal contract combines two or more corporations such that only one of the corporations continues to exist.
merger
An agent who makes an unauthorized agreements has failed to meet the duty of
obedience
In a tender offer, the aggressor
offers target shareholders a price above the current market value of the stock
MNM Inc. manufactures cement blocks and requires hiring people for heavy physical work such as carrying the cement blocks, loading them in the trucks, etc. Since the work involves heavy physical activity, MNM hires only male employees. On what basis could the company defend itself had a case of discrimination on the basis of sex been filed against the company?
on the basis of bona fide occupational qualification defense
Which of the following statements is true of the property rights of a partner?
partners own the partnership property a tenants in property, which means they own it as a group
partnership is considered a legal aggregate of the partners when
partnership debts eventually become the debts of the individual partners
According to the Uniform Partnership Act (UPA), which of the following must be given the highest priority during the distribution of liquidated assets?
payment to creditors of the partnership
Which of the following categories of employees is covered under the Fair Labor Standards Act (FLSA), which states that employees who work more than 40 hours in a week be paid no less than one and one-half times their regular wage for all the hours they work beyond 40 during a given week?
production employees who produce goods for interstate commerce
The public policy exception:
prohibits employers from firing employees engages in activities that further the public interest
Title VII of the Civil Rights Act of 1964:
prohibits employers from firing employees on the basis of racial discrimination
Federal Deposit Insurance Corporation (FDIC) is an example of a _____ corporation.
public
Corporations can extend their operations by
purchasing another corporation's stock
_____, also known as callable preferred stock, permits an issuing corporation to buy shares back from shareholders in certain circumstances.
redeemable preferred stock
Which of the following termination occurs by act of parties?
renunciation by an agent
According to the doctrine of _____, corporations are liable for torts and crimes committed by their agents during the scope of their employment.
respondeat superior
A durable power of attorney
specifies that the agent's authority is intended to continue beyond the principal's incapacitation
A ________ is an investment group that comes together for the explicit purpose of financing a specific project
syndicate
Under workers' compensation laws, __________
the covered workers injured on the job can receive financial compensation through an administrative procedure
When a partner withdraws or is expelled according to a partnership agreement, dissolution occurs due to
the partner's act
When an agent commits a crime
the principal can be liable for the crime if he or she authorized the criminal act
When the principal is disclosed
the principal is liable for the agreements made with the third party
Which of the following is true of the right of survivorship?
the rights in specific partnership property pass to the surviving partners
In a consolidation, ____________
two or more corporations combine to form an entirely new corporation, with its own legal status
In the context of the types of bonds, no assets support a corporation's obligation to repay the face value of:
unsecured bonds
Under the doctrine of "respondeat superior," the principal/employer holds _____, which is liability assigned without fault, for any harm the agent/employee causes while working for the principal.
vicarious liability
Which of the following conditions necessitates a limited partner to surrender his or her limited liability?
when the limited partner's surname is part of the partnership name
Misrepresentation liability depends on
whether the principal authorized the agent's act
According to the Occupational Safety and Health Act (OSHA), employers:
with 11 or more employees must keep records of work related injuries and illnesses
An employer who has repeatedly violated the Americans with Disabilities Act (ADA) may be subject to fines of up to ____.
$100,000
Under Section 7.22(c) of the Revised Model Business Corporation Act (RMBCA), proxies last for _____ months.
11
Under the Americans with Disabilities Act (ADA), if a charge has been filed with the state agency, an Equal Employment Opportunity Commission (EEOC) charge must be filed within _____ days of receiving notice of the termination of the state proceedings.
30 days
Which of the following statements is true of incorporators in accordance with the Revised Model Business Corporation Act (RMBCA)?
Generally, the only duty of incorporators is to sign the articles of incorporation
When a person enters into a limited partnership by contributing $20,000 to it, as a limited partners
He or she cannot be held liable for more than 20000$
Which of the following statements is true of the liquidation phase of termination?
In cases of involuntary dissolution, courts automatically appoint a receiver to handle liquidation duties.
Which of the following statements is true of a stock certificate?
A stock certificate includes a corporation's name and the number of shares it represents
Which of the following is a separate legal entity that does not involve double taxation?
An S corporation
In which of the following types of takeovers does the aggressor gradually accumulate a substantial number of the target corporation's shares and then initiate a proxy fight?
Beachhead acquisition
Which of the following statements is true of independent contractors?
Building contractors, doctors, stockbrokers, and lawyers are types of independent contractors
In a _____, the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
Chain-style business operation
Who among the following plays the role of decision makers?
Directors
The _____ outlaws the intentional interception of electronic communications and intentional disclosure or use of the information so obtained.
Electronic Communications Privacy Act
The _____ is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.
Employee Retirement Income Security Act
The _____ Act, passed in 1935, created a state system to provide unemployment compensation to qualified employees who lose their jobs.
Federal Unemployment Tax
Which of the following statements is true about a partnership?
Income from a business involving a partnership is taxed as individual income for each partner
Which of the following statements is true of the Revised Uniform Limited Partnership Act (RULPA)?
It changes as lawmakers revise it to better achieve social goals
Which of the following statements is true of a partnership at will?
It is an agreement that does not specify the objective or duration of the partnership
Which of the following statements best defines a cooperative?
It is an organization formed by individuals who usually pool their resources to gain an advantage in the market
Which of the following statements is true of a joint venture?
It is usually terminated when all the stock has been sold
Identify the correct statement regarding a short-form merger.
It occurs when a parent corporation merges with a subsidiary corporation
_____ 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.
Joint and several liability
Bright Daffodils Inc. operates in a state where the smoker's rights law is prevalent. Samantha, the HR manager at Bright Daffodils wants to terminate an employee, Lara, because she is a smoker. Which of the following is true in the context of the given scenario?
Lara cannot be legally terminated for smoking outside the workplace
Lily asked her boss, Duke, for a hike in salary on the basis that she had successfully completed two important projects in the past six months which might otherwise have taken at least a year to complete. Duke was impressed with her performance but asked her to meet him upstairs later at night in his apartment to discuss the matter further. There were other instances when Lily found Duke getting physically too close to her. On Lily's refusal to meet at his apartment, Duke declined her request for a raise. This is an example of:
Sexual harassment
Which of the following statements is true of the rights and liabilities of the shareholders in a corporation?
Shareholder's liability is limited to their investment in a corporation
Which of the following statements is true of the liability of shareholders?
Shareholders can be held personally liable for receiving illegal dividends
Identify the correct statement about the inspection rights of a shareholder.
Shareholders can inspect records and books only if they ask in advance and have a proper purpose
Which of the following establishes the rules for partnership in the absence of an express partnership agreement?
The Uniform Partnership Act
Which of the following statements is true of the requirements for ratification to be effective?
The principal must have complete knowledge of all material facts regarding the contract
Which of the following statements is true of the purchase and sale of assets?
The selling corporation needs the approval of both its board of directors and its shareholders before it can sell its assets
In the context of discrimination based on sexual orientation, which of the following statements is true?
There is currently no federal legislation that prohibits discrimination based on sexual orientation
Which of the following statements best defines affiliated directors?
They are outside directors who have business contacts with a corporation
Which of the following statements is true of the directors' rights in a corporation?
They have the right to be notified of all meetings and have access to all books and record
Principal-agent relationships are most significant for issues that are included in the category of ________ law
Tort
The Fair Labor Standards Act requires that:
a minimum wage of a specified amount be paid to all employees in covered industries
A strike is:
a temporary concerted withdrawal of labor
A partnership by estoppel exists when:
a third party is aware of and consents to a misrepresentation of partnership
A(n) _____ is a review and listing of all partnership assets and/or profit and lists the distribution of assets and profit to the partners.
accounting
At-will employment implies that:
an employer can fire an employee without any reason
The most influential power of shareholder is to
elect and remove directors
_____ requires that if a corporation cannot pay the required dividends in a given year, it must pay them in the next year before it pays any common stock dividends.
cumulative preferred stock
What type of termination occurs due to operation of law?
disloyalty of agent
When an agent acquires interest against the principal's interest, without the principal's knowledge, the agency relationship terminates due to:
disloyalty of the agent
_____ is complete when any partner stops fulfilling the role of a partner to the business, either by choice or by default.
dissolution
A cell phone business is an example of a
distributorship
Under the __________, partnership assets are arranged in a certain order to pay any outstanding debts
doctrine of marshaling assets
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
duty to reimburse
