Final Exam - Sample Questions
E. None of the above
Affirmative Action requires A. Quota systems B. Requiring an employer to hire unqualified people C. Requiring an employer to always hire people in the protected class D. All of the above E. None of the above
A. Chapter 7
Liquidation is handles under what section of the Bankruptcy Code? A. Chapter 7 B. Chapter 9 C. Chapter 11 D. Chapter 13 E. Chapter 15
E. A, B, and C
Little Johnny is fourteen, where can he work outside of his parents own business under the Fair Labor Standards Act? A. In the acting profession B. As a paperboy C. Some farming situations D. As an ocean lifeguard for the state of California where he risks his life daily E. A, B, and C
D. Marine Protection, Research, and Sanctuaries Act
What is the real name of the Ocean Dumping Act? A. Ocean Protection Act B. Oceans Preservation and Permit act C. Marine Wildlife and Fish Research Act D. Marine Protection, Research, and Sanctuaries Act E. Ocean and Marine Protection and Wildlife Sanctuaries Act
B. Six (6) months
What is the time period on "Short-Swing" Profits? A. Three (3) months B. Six (6) months C. 1 year D. 3 years E. 6 years
C. Restrictions on child labor
What is/are a/the major provision(s) of the Faire Labor Standards Act of 1938? A. Minimum wage of $8 per hour B. Creation of a forty (40) hour work week C. Restrictions on child labor D. A, B, and C E. A and B only
D. All of the above
What must be disclosed by Regulation Z of TILA? A. Starting date of the obligation B. Cash price of the transaction C. Number of payments D. All of the above E. A and C only
D. A and B
What must be included in the filing that is necessary to create an LLC? A. Name of the LLC B. The purpose of the LLC C. Name and address of each incorporator D. A and B E. A, B, and C
A. Compensation
What one aspect of employment does the Equal Pay Act deal with? A. Compensation B. Hiring C. Firing D. A and C E. All of the above
B. Accountants
What profession first used LLPs in large numbers? A. Attorneys B. Accountants C. Bankers D. Dentists e. Doctors
E. A and D
What property can a landlord NOT take under a proper Landlord's Lien? A. The shirt off your back B. Your television set C. Your video game set D. Family pictures E. A and D
E. A and C only
What should be included in the prospectus? A. Terms of the security B. A rating on the security by the SEC C. Independently audited financial statements D. A, B, and C E. A and C only
E. B, C, and D
What state(s) have Off-Duty Conduct statutes? A. Texas B. North Dakota C. New York D. Colorado E. B, C, and D
B. Griggs Test
What test do you use to prove disparate impact? A. Howey Test B. Griggs Test C. Franklin Test D. Schwinn Test E. HHI
B. Best available
What type of environmental controls are required by the Safe Drinking Water Act of 1974? A. Reasonably available B. Best available C. Maximum achievable available D. Best practical available E. Absolute best available
E. B, C, and D
What type of securities are debt obligations of the corporation? A. Stocks B. Bonds C. Debentures D. Equipment trust bonds E. B, C, and D
D. Wyoming
What was the first state to have LLCs in the United States? A. Nevada B. Arkansas C. Kansas D. Wyoming E. Montana
A. 5%, tender offer
When attempting to purchase what percentage of a company's stock must you notify the SEC of your proposal and what is it called? A. 5%, tender offer B. 10%, tender offer C. 15%, proxy solicitation D. 20%, proxy solicitation E. 25%, proxy solicitation
E. A and C only
When does the Business Judgment Rule protect the corporate directors or officers and managers? A. The action was taken based on an informed decision B. There was a conflict of interest involved C. There was a rational basis for the decision D. A, B, and C E. A and C only
E. A, B, and C only
When it comes to privacy in the workplace what is an example of what the employer can do? A. Search your desk with good cause and if required with a search warrant B. Do random drug tests if you agreed to that as a condition of your employment C. Monitor your emails D. Video tape you in the dressing room changing into your uniform E. A, B, and C only
D. SIP
When the EPA created the environmental standards for Texas what was Texas required to create? A. RACT B. BACT C. MACT D. SIP E. BPCT
D. All of the above
When the EPA sets the NAAQS, what is of secondary concern to the EPA? A. Vegetation B. Climate C. visibility D. All of the above E. Human beings
D. 1,100
When the first cleanup barge reached the Exxon Valdez disaster site fourteen hours after the accident how much of the Alaskan coastline, in miles was covered in oil? A. 1 B. 11 C. 110 D. 1,100 E. 11,000
B. Fair Credit Billing Act
When you want to correct inaccurate billing on a credit card statement, what law can you use? A. TILA B. Fair Credit Billing Act C. Consumer Leasing Act D. Fair Debt Collection Protection Act E. Any of the above
E. A and C
Where can little Johnny work if he is under 15 under the Fair Labor Standards Act? A. For his parents in the family business B. At a construction site driving heavy equipment C. At a fast food eating establishment if you stay away from the deep fryers D. At a shooting range setting the targets for the shooters E. A and C
C. Germany
Where did LLCs begin? A. Japan B. China C. Germany D. England E. France
C. Fair Debt Collection Protection Act
Which Consumer Act applies to collection agencies? A. Truth in Lending Act B. Fair Credit Billing Act C. Fair Debt Collection Protection Act D. Fair Credit Reporting Act E. All of the above
B. LLP
Which business entity was created in Texas in 1991? A. LP B. LLP C. LLLP D. S corporations E. PC
D. Secretary of State
Which is the proper official to file your papers to create a corporation if you want to incorporate in Texas? A. Attorney General B. Lt. Governor's Office, Corporate Division C. Department of Public Safety D. Secretary of State E. Department of Business, Commerce, and Entertainment
E. A and B
Which of the following are currently required by the OPA? A. Every oil tanker must have an oil cleanup contingency plan in the event of an oil spill B. A certificate to be allowed to enter the United States from the U.S. Coast Guard C. Proof that the ship is a double hulled ship D. A one million dollar deposit in a bank in the United States specified by the EPA E. A and B
D. A and B
Which of the following are necessary steps to prove a prima facie case of disparate treatment in a hiring situation? A. That you are qualified for the job B. That the employer is seeking applications C. That they have a practice that results in discrimination in hiring techniques D. A and B E. A, B, and C
E. A, B, and C
Which of the following are true about a sole-proprietorship? A. It is the oldest form of business entity B. It is the simplest form of business entity C. There are no formalities in creating it D. It can last forever E. A, B, and C
A. Artisan's lien
Which of the following is a possessory lien? A. Artisan's lien B. Landlord's lien C. Mechanic's and materialman's lien D. Judgment lien E. All of the above
D. It can last forever
Which of the following is true about a corporation? A. It is the oldest form of business entity B. It is the simplest form of business entity C. There are no special requirements to create it D. It can last forever E. A, B, and C
D. It can last forever
Which of the following is true about a limited liability company? A. It is the oldest form of business entity B. It is the simplest form of business entity to create C. It requires no formalities to create it D. It can last forever E. A, B, and C
C. There are no formalities to forming it
Which of the following is true about a partnership? A. It is the oldest form of business entity B. It is the simplest form of business entity C. There are no formalities to forming it D. It can last forever E. A, B, and C
E. A and C only
Which of the following is true about a rural homestead? A. The claimed property can be in more than one parcel B. Is limited to 200 acres for a single adult C. The debtor gets to designate the exempt property D. A, B, and C E. A and C only
E. All of the above
Which of the following is true about limited liability companies? A. They give all of their owners limited liability B. They are much easier to operate than the corporate form C. They have flexibility in taxation D. They have flexibility in management E. All of the above
B. You can only select one type of homestead in Texas
Which of the following is true about the homestead exemption in Texas? A. There are three types of homesteads in Texas B. You can only select one type of homestead in Texas C. The homestead exemption is capped at a maximum of $150,000 per homestead D. There is no difference in any of the homestead exemptions whether you are married or single E. You can choose a rural and an urban homestead
E. C and D
Which of the following is/are NOT covered by the EPA but probably will be in the future? A. Mobile point sources B. Toxic substances C. Indoor air pollution D. Urban run off E. C and D
E. A and B
Which of the following is/are an example of a protected class under the Civil Rights Act of 1964? A. Two Latino employees speaking Spanish at work during their break who are fired for doing so because they are Latino B. Firing a woman because she is pregnant C. Firing a man because he has a sex change D. Firing an African American female because she was arrested for theft E. A and B
E. C and D only
Which of the following is/are an example(s) of areas that have been added to the five (5) categories that are protected classes under the Civil Rights Act of 1964? A. Color B. Sexual protection C. Pregnancy D. Sexual harassment E. C and D only
E. A and B
Which of the following is/are taxed like a partnership even though that entity is not a partnership? A. Limited Liability Company B. S Corporation C. Closely Held Corporation D. Limited Partnership E. A and B
B. Rule 16b of the '34 Act
"Short-Swing" Profits are set by: A. Rule 10b of the '34 Act B. Rule 16b of the '34 Act C. Rule 24b of the '33 Act D. Rule 59b of the '33 Act E. None of the above, there is no such thing in Securities Law
E. All of the above
A Mechanic's, Contractor's, or Materialman's Lien covers which of the following types of situations where you do not pay for the actions? A. Repairs on your home such as when a new heating system is installed B. Little Johnny cutting the grass C. Installation of a swimming pool D. A and C E. All of the above
E. A and D
Comparable Worth A. Is an argument that equal pay should extend to workers that are doing different jobs that have a comparable worth to the business B. Statutory law in 35 states C. Only adopted by common law and in just a few states in the United States D. Just a theory and is not the law in the United States E. A and D
E. All of the above
The Rehabilitation Act gave us which of the following? A. Curb cuts in sidewalks B. Hire the handicapped programs C. Affirmative action D. Handicapped parking E. All of the above
E. Thumb
Assume you are right handed and that you cut off your finger. Under workers compensation law in Texas, what is the most valuable finger on your right hand? A. Little finger B. Ring finger C. Middle finger D. Index finger E. Thumb
E. A, B, and C
Disclosure must be made under the Truth in Lending Act if A. The amount financed is more than $25,000 B. There are more than four payments C. In certain real estate loans D. A and C E. A, B, and C
D. 30%
During the Depression at the time that FDR was implementing the New Deal what was the rate of unemployment in the United States? A. 10% B. 20% C. 25% D. 30% E. 50%
B. Two
How many different classes of partners must a limited partnership have to be legal? A. One B. Two C. Three D. Four E. Five
E. All of the above
If Carnival Cruise Lines dumps the trash hold on the ship into the ocean, what are the penalties that could be assessed for that dumping of trash? A. Injunction B. fine of $50,000 C. Imprisonment for up to 1 year D. B and C E. All of the above
B. BACT
If a factory is built in 1990 and emits air pollution, what type of pollution control devices would be required to be installed by the factory? A. RACT B. BACT C. BPCT D. MACT E. None of the above
B. BACT
If a factory was built after the Clean Water Act went into affect, what type of pollution control device must be installed? A. RACT B. BACT C. MACT D. BPCT E. None of the above
D. MACT
If an already existing plant emits mercury, what type of air pollution controls must be installed? A. RACT B. BACT C. BPCT D. MACT E. None of the above
E. Nothing
If the labor representative calls OSHA and reports safety violations and even goes so far as to point those violations out to the OSHA inspectors when they arrive, what can the employer do to the worker for reporting the OSHA violations? A. Fire him/her B. Reduce his/her pay C. Demote him/her to a lower job D. Cancel his/her employment benefits E. Nothing
E. None of the above
If you are creating a partnership which of the following items MUST be in the partnership agreement? A. Relation of the partners to each other B. Responsibilities of the partners C. Duration of the partnership D. How are the profits going to be split E. None of the above
E. C and D
If you want to create a separate legal entity, which form(s) of business entities do so? A. Sole proprietorship B. Partnership C. Corporation D. Limited liability company E. C and D
C. Corporation
If your primary objective is to be able to raise capital from the public, which form of business entity is the correct choice? A. Sole proprietorship B. Partnership C. Corporation D. Limited partnership E. Limited liability company
C. Corporation
If your primary objective is to give all the owner(s) limited liability, your choice for a type of business entity should be a: A. Sole proprietorship B. Partnership C. Corporation D. Limited Partnership E. Any of the above give the owner(s) limited liability
E. There is no maximum limit
In Texas, what is the maximum amount of exemption that a Consumer can claim for a retirement account? A. $30,000 if the debtor is single B. $60,000 if the debtor is married or head of a family C. $90,000 D. $120,000 E. There is no maximum limit
E. ACQR
In air pollution, a state is subdivided into A. RACT B. BACT C. BPCT D. SIP E. ACQR
C. Drinking water
In the Clean Water Act, the EPA sets the stiffest standards for A. Agricultural use B. Industrial use C. Drinking water D. Propagation of fish E. Recreation
D. 200 acres and all of the improvements thereon
Mike and Mary are a married couple. Their rural homestead in Texas is A. 100 acres B. 100 acres and all of the improvements thereon C. 200 acres D. 200 acres and all of the improvements thereon E. None of the above
B. Surety
Mike promises in writing to pay the debt owed by Mary in the event that Mary does not pay the debt. If the Creditor, Tom, correctly goes after Mike without suing Mary, Mike is a A. Guarantor B. Surety C. Third party beneficiary D. B and C E. All of the above
E. B and C
Proxy solicitation is: A. Illegal B. Allowing someone else to vote your shares C. Highly regulated by the '34 Act D. Only available to insiders in a corporation E. B and C
D. Chapter 13
Reorganization Bankruptcy for individuals with set income is found in what Chapter of the Federal Bankruptcy Code? A. Chapter 7 B. Chapter 9 C. Chapter 11 D. Chapter 13 E. Chapter 15
B. Public Company Accounting Oversight Board
Sarbanes-Oxley created a regulatory agency to establish and enforce ethical and auditing standards for auditors of public companies; this agency is called: A. Remember Arthur Andersen Board B. Public Company Accounting Oversight Board C. Private Company Auditing Board D. Public Accounting Company Accountability Agency E. Anti-Accounting Company Commission
B. $30,000 worth of exempt personal property
Spencer is a single adult with no children, his personal property maximum of exempt property, in Texas is A. $15,000 worth of exempt personal property B. $30,000 worth of exempt personal property C. $60,000 worth of exempt personal property D. $90,0000 worth of exempt personal property E. $120,000 worth of exempt personal property
E. 40 and above
The Age Discrimination in Employment Act and its subsequent amendments protects workers who are: A. 40-65 B. 40-70 C. 40-75 D. 40-80 E. 40 and above
D. When total payments do not exceed $25,000
The Consumer Leasing Act applies to A. Real estate leases B. Business leases C. Corporations D. When total payments do not exceed $25,000 E. Only consumer loans of more than $25,000 such as a lease on a Lexus automobile
E. All of the above
The Equal Credit Opportunity Act applies to A. Race, color, religion, sex, and national origin B. Type of income received including welfare C. Marital status in Texas D. Age E. All of the above
D. Sex
The Equal Pay Act deals with what class(es) of workers? A. Race B. Color C. Religion D. Sex E. All of the above
E. B and C only
The Fair Credit Reporting Act allows a Consumer's Credit Report to be used by A. Employers B. Consumers when requested by a written request by the consumer C. By court order D. All of the above E. B and C only
E. A and B only
The Insider Trading Sanctions Act established A. Treble damages in insider trading B. Liability for aiders and abettors in insider trading C. A ten (10) year statute of limitations D. A, B, and C E. A and B only
B. Point sources
The major area of concern in water pollution is A. Automobiles B. Point sources C. Smoke stacks D. Midnight dumpers E. Wetlands
D. A and B
To obtain a Writ of Execution, you must have reason to believe that the debtor is A. About to leave the state B. About to take the property out of the state C. Simply indebted to you D. A and B E. A, B, and C
B. Outside directors
Under Sarbanes-Oxley, who must be on the audit committee? A. Outside officers B. Outside directors C. Inside officers D. Insider directors E. A and B
E. A, B, and C
Under the Fair Credit Reporting Act who is responsible for incorrect information being included in your credit report? A. The Credit Reporting company B. The company that incorrectly reported the information C. Any company that makes use of the credit report of another improperly D. A and C only E. A, B, and C
E. A and C
Under which type of discrimination do you have to prove intent to discriminate? A. Disparate Treatment B. Disparate Impact C. Differential Treatment D. A and B E. A and C
C. Army Corps of Engineers
Wetlands are enforced by A. EPA B. Coast Guard C. Army Corps of Engineers D. NRC E. Commerce Department
E. Only A and C
What are the legal duties of the directors and managers/officers to the owners of the corporation? A. Duty of due care and diligence B. They must always make the right decision C. Fiduciary duty D. All of the above E. Only A and C
D. A and C
What are the penalties for violation of the '33 Act? A. Five (5) years in prison B. Ten (10) years in prison C. $10,000 fine D. A and C E. B and C
E. B and C
What are the penalties for violation of the '34 Act? A. Five (5) years in prison B. Ten (10) years in prison C. $10,000 fine D. A and C E. B and C
A. NAAQS
What are the standards for the country set by the EPA in air pollution? A. NAAQS B. RACT C. BCAT D. SIPS E. ACQRS
E. All of the above
What countries of the world generally use Generally Accepted Accounting Principles (GAAP)? A. The United States B. Germany C. France D. Japan E. All of the above
B. Bylaws
What document sets the rules that govern the operation of the corporation? A. Operating agreement B. Bylaws C. Company regulations D. Articles of incorporation E. Articles of organization
C. Rivers and Harbors Act
What environmental law was the first one in the United States to give the country a permit system? A. Clean Air Act B. Clean Water Act C. Rivers and Harbors Act D. Federal Water Pollution Control Act E. Resource Conservation and Recovery Act
C. Certificate of Organization
What is the birth certificate of the LLC? A. Articles of Organization B. Articles of Incorporation C. Certificate of Organization D. Certificate of Incorporation E. Corporate Charter
E. B and D
Which of the following statements about drug testing by your employers is/are true? A. An employer can do random drug tests on any employee for any reason B. An employer can do a drug test on the employees involved in an accident at work C. An employer can only do a drug test with the employees permission D. An employer can do an announced drug test for everyone if the drug test is far enough in the future to give the employees the time to get any illegal drugs out of their system E. B and D
E. The federal government sets the standards, the state governments enforce the standards, and if they do not, the federal government enforces them
Which of the following statements best describes the procedures under the Clean Water Act? A. The federal government sets and enforces the standards B. The state government sets and enforces the standards C. The federal government sets the standards, the state governments enforce the standards D. The state government sets the standards, the federal governments enforce the standards, and if they do not, the state government enforces them E. The federal government sets the standards, the state governments enforce the standards, and if they do not, the federal government enforces them
D. All of the above
Which of the following statements is/are true about "Short-Swing" Profits? A. There are no defenses B. Insider information is deemed to be used C. The corporation is supposed to sue to recover the profit D. All of the above E. B and C only
E. C and D
Which of the following types of business entities have/has a limited on the type of owners they can have? A. Limited liability company B. Partnership C. S corporation D. Professional corporation E. C and D
C. Make the audit committee be totally composed of outside directors
Which of the goals of CalPERS when dealing with institutional investors became part of Sarbanes-Oxley? A. Make outside directors constitute a majority of the board of directors B. Have the chairperson of the board be an outside director C. Make the audit committee be totally composed of outside directors D. Make the audit and consulting parts of accounting be handled by totally separate accounting firms E. All of the above have become part of Sarbanes-Oxley due to CalPERS
E. A and B
Which type(s) of businesses cannot be a LLC? A. Banks that are insured by the FDIC B. Insurance companies C. Car dealerships D. Restaurants E. A and B
E. All of the above
Who can be liable under "Short-Swing" Profits? A. Officers B. Directors C. 10% or greater stockholders D. Managers E. All of the above
E. A and D
Who elects the board of directors in a corporation? A. Owners B. Officers C. Managers D. Shareholders E. A and D
C. State governments
Who enforces the NAAQS? A. Municipal governments B. County or parish governments C. State governments D. All of the above E. National government
E. Any of the above are liable
Who is liable under the Comprehensive Environmental Response, Compensation, and Liability Act? A. Owner of the land at the time the waste was deposited on the land B. Generator of the hazardous waste C. Operator of the land at the time the hazardous waste is discovered D. Owner of the land at the time the waste is discovered E. any of the above are liable
C. Board of directors
Who/what is responsible for the operation of the corporation? Who would be the agents to the owners of the corporation? A. Members B. Shareholders C. Board of directors D. Officers and managers E. A and B
