MGT 200 - Exam 3
Which of the following are elements of a general partnership? 1. Association of two or more people 2. Co-ownership and co-management of a business 3. Limited-in-time relationship 4. Limited liability
1 and 2
Which of the following are protections included in the Family Medical Leave Act (FMLA)? 1. Employers are prohibited from taking adverse job action because of a leave. 2. Employees are guaranteed employment in the same or similar job upon returning from a leave. 3. Employees do not need any documentation to be eligible for a leave 4. Employers are prohibited from terminating an employee for three years upon return from a leave
1 and 2
Which of the following are true about withdrawl under the RULPA? 1. a general partner may always withdraw at any time 2. the withdrawl of a general partner does not automatically result in dissolution of the partnership 3. withdrawl of a general partner triggers winding up 4. limited partners may withdraw upon 30 days notice to the other partners
1 and 2
Which of the following are not among the factors used by courts to determine likelihood of consumer confusion (Polaroid test)? 1. Price of the product 2. Strength of the mark 3. Evidence of actual confusion 4. First in use
1 and 4
Which of the following are not rules used by courts for determining whether literal patent infringement has taken place? 1. Exclusion 2. Exactness 3. Addition 4. Attention
1 and 4
Which of the following factors are considered by a considered by a court when judging whether fairness demands that the corporate veil be pierced? 1. Inadequate capitalization 2. Poor business judgment by the principals 3. Personal wealth of the principals 4. Failing to follow corporate formalities
1 and 4
Which of the following are required in order to establish a prima facie case of disparate treatment under McDonnell Douglas? 1. Plaintiff was a member of a protected class 2. Plaintiff applied for and was qualified for the position 3. Employer continued to seek other applicants for the position 4. Employer made statements or acted in a way as to indicate a discriminatory motive
1, 2, 3
Which of the following are requirements for qualification as a Subchapter S corporation? 1. unanimous consent of all shareholders 2. no more than 100 shareholders 3. not a bank or insurance company 4. no more than $1 million in annual revenue
1, 2, and 3
Which of the following is an important factor in choosing a business entity? 1. Ease of formation 2. Management and operation 3. Funding of the entity 4. Proposed name of entity
1, 2, and 3
The Securities Act of 1934 requires public companies to make certain periodic disclosure reports related to: 1. issuance of securities 2. financial performance of the company 3. corporate governance procedures 4. initial public offerings
2 and 3
Which of the following falls under the authority of the National Labor Relations Board (NLRB)? 1. Enforce wage and hour laws 2. Monitor union elections for fraud 3. Set guidelines for employer and unions regarding fair labor practices 4. Issue permits for unions voting to strike.
2 and 3
Which of the following are not protectable under federal copyright statutes? 1. Works of fiction 2. Procedures 3. Musical works 4. Methods of operation
2 and 4
Which of the following entities is possible for a business with only one principal? 1. Partnership 2. Limited Liability Partnership 3. Sole proprietorship 4. Corporation
3 and 4
Which of the following positions are not exempt from coverage from the FLSA? 1. Engineer at a manufacturing firm 2. Attorney 3. Customer service representative 4. Office building receptionist
3 and 4
Once an employee has reached age ____, he or she is protected from age discrimination by employers through the Age Discrimination in Employment Act (ADEA).
40
Which of the following statements is true of the taxation of limited liability partnerships (LLP)?
All income or losses from an LLP are reported on the partners' individual tax returns
Which of the following statements accurately differentiates between the management of a limited liability company (LLC) and a limited liability partnership (LLP)?
An LLC may be member-managed or manager-managed an LLP is managed by managing partners or an executive committee
_____ laws are a common name for state securities statutes that are based on the Uniform Securities Act.
Blue-sky
Big Time Studios will not accept Arnold's application for the lead role in a movie because the role was intended for a woman. In a claim of discrimination, which of the following is Big Time's best defense?
Bona Fide Occupational Qualification (BFOQ)
Which of the following is protected under the Copyright Act?
Choreograhpic works
What is a binding court judgment that establishes the rights and other legal relations of the parties without providing for enforcement?
Declaratory Judgment
Which of the following constitutes a partnership at will?
Diane and Ralph's partnership agreement does not address when the partnership will terminate
______ occurs when an individual member decides to exercise the right of withdrawing from an LLC.
Dissociation
Which of the following is not required in order to establish a prima facie case of disparate treatment under McDonnell Douglas?
Employer made overt statements that qualify as discriminatory
What does EEOC stand for in the employment context?
Equal Employment Opportunity Commission
Who oversees the regulation of franchisors?
Federal Trade Commission
After Shubert is passed over from promotion, he believes that he was the target of discrimination. Which of the following is Shubert's first step in asserting his claim?
Filing a compliant at the local EEOC office
Which of the following statements is true of general partnerships?
General partnerships can operate without written agreements
Ernest is a supervisor at an office store. He subjects his female employees to inappropriate touching, taunts them about sexual promiscuity, and plays pranks involving use of pornographic material. What is the applicable sexual harassment theory in this case?
Hostile work environment
Which of the following statements is true of a limited liability company (LLC)?
In a member-managed LLC the management structure of the entity is similar to a general partnership
Paul sends a personal email to his girlfriend on his work computer. His manager telephones him and informs him that personal emails are prohibited on work computers. Paul is furious because he claims his employee privacy rights were violated. Is Paul correct or incorrect?
Incorrect, because employers may monitor employee's use of company-owned computers.
BigCo plans on a significant expansion of its operations. It intends to capitalize this expansion through $5 million in debt and therefore wants the lowest rate possible and to use only its general creditworthiness (instead of specific assets) to secure the debt. Which of the following is BigCo's best option for capital?
Issue a corporate debenture
Julian, Curt, and Drew are all principals in JCD Associates LLC. In the operating agreement they agree that Julian will be paid a salary to run day-to-day operations, but any principal is permitted to sign a contract or otherwise bind the LLC. Which of the following describes JCD Associates?
Member-managed
Members of High Flyer LLC made knowingly false statements on an application with Local Bank in order to obtain a loan. After High Flyer defaults on the loan, Local Bank obtains a $50,000 judgment against High Flyer, but the company is without assets. Which of the following is true?
Members are liable; fairness demands that the court disregard the liability protection
Mira, Alex, and Petra are partners in the Lexington Bookkeeping Services company, a limited liability partnership (LLP). Alex engaged in tortious conduct by converting (taking) their clients' funds for his own personal use. If the plaintiff clients sue Lexington Bookkeeping Services, but the business' assets cannot cover the damages, which is the following is likely to be true?
Mira and Petra's personal assets will be protected, but not Alex's personal assets
Which of the following best describes how an LLC is taxed?
Pass-through taxation
Chef Cranky signs a contract with Printer Works for fliers, menus, and posters to advertise his new restaurant. Cranky signs as a principal on behalf of his soon-to-be-formed corporation Cranky's Kitchen Inc. However, several of Cranky's investors withdrew from the project after learning how angry and volatile Chef Cranky became in the kitchen. Cranky never formally incorporates his new venture. If Printer Works sues Cranky individually for the payments due, who prevails?
Printer Works, because Cranky is personally liable as a promoter
The Federal Trade Commission regulations relating to franchises are designed primarily to do which of the following?
Provide full disclosure of relevant information about the franchise, prior to the franchisee's investment
The model law used by more than half the states to set certain standards for internal governance of a corporation is the
Revised Model Business Corporation Act
In the wake of many corporate fraud and malfeasance scandals, what did Congress pass to overhaul the entire corporate governance regulatory structure?
Sarbanes-Oxley Act of 2002
The _____ is an independent administrative agency charged with regulating issuance and trading of securities.
Securities and Exchange Commission
Silvia has been working full time for a large corporation for three years. Her mother has fallen ill and will need continuous care for the next few months. Silvia's employer grants her two months of medical leave. Under the Family and Medical Leave Act (FMLA), which of the following is true?
Silvia must be immediately reinstate at the same rate of pay when she returns
In addition to any pension or savings retirement income, workers are entitled to retirement payments from the federal government through the ___.
Social Security Act (SSA)
Which of the following is true of privately held corporations?
They often use unanimous consent resolutions to handle tasks like electing directors or issuing stock
Benjamin, a 40-year old Latino man, applied for a promotion from assistant manager to general manager at Main Line Country Club. When interviewing him, the president of the club expressed concern about Benjamin's lack of experience in managing such a large operation. When Benjamin cited his exemplary record as an assistant manager, the president commented, "I'll let you know. But with your lack of experience, I'm not sure. To be quite honest, it is doubtful that the member board would approve a Latino manager." If Benjamin is not hired, does he have a potential discrimination claim?
Yes, under a mixed motives theory
Which of the following is NOT included in the revised limited liability company (LLC) statute, the RULLCA?
a mandatory structure for the LLC's management
Which of the following situations involving copyright infringement is most likely to be protected by the fair use defense?
a professor studies an experiment in a published journal and draws analogies with it during a class lecture
A general partnership is composed of ____.
at least two general partners and no limited partners
Wu is an Asian candidate applying to work as a waiter at a Mexican restaurant in Dallas. Marcia, the restaurant owner, rejects Wu's application because she believes that Asians do not make good waiters. Under the Title VII of the Civil Rights Act of 1964, Wu is
being discriminated against on the basis of his membership in a protected class
Building ____ is one of the primary objectives of trademark owners who design and advertise their trademarks as part of their business strategy.
brand loyalty
Trademark owners design and advertise their trademarks in hopes of building
brand loyalty
In 2008, Congress passed the ADA Amendments Act, which ___ the definition of a disability.
broadened
The ADA Amendments Act of 2008 ___ the coverage of the ADA by expanding statutory definitions.
broadened
What rule protects officers and directors from shareholder suits seeking redress for decisions that were made in good faith but resulted in a loss for the company?
business judgement rule
Much of the work of the board of directors is accomplished through its
committees
Trade secret law is based on the
common laws (State)
Which of the following is an example of a debt instrument?
debenture
A disgruntled shareholder files a breach-of-duty lawsuit against the officers and directors of WidgetCo on behalf of himself. This is known as a _____ action.
direct
Members of an LLC who wish to withdraw from participation and liability of an LLC have the right of
dissociation
Under the Electronic Communications Privacy Act (ECPA), employers _____.
do not have the right to monitor employees' personal calls in the workplace
The ____ permits employers to terminate an employee with or without advance notice and with or without just cause, subject to certain exceptions.
employment-at-will doctrine
Many state limited liability company (LLC) statutes provide for the judicial expulsion of a member for any of the following reasons, except
engaging in conduct that goes against the majority opinion of LLC members
Most businesses offer their nonpublic securities offerings on a(n) _____ basis as provided for in the '33 Act.
exempt
The Patent Act is found in ____.
federal statutes
The Fair Labor Standards Act (FLSA) does not regulate ____.
gender discrimination
The Revised Uniform Partnership Act is the model statute that covers which of the following partnerships?
general partnerships
NewCo fails to police its registered trademark phrase, and the phrase becomes a common, nonspecific phrase in the general public's vocabulary. NewCo is in jeopardy of losing its trademark rights through ____.
genericde
An S corporation
has the ability to distribute earnings without incurring double level taxation
While acquiring rights for trademark protection, a mark holder may use the symbol TM to indicate that the
holder considers the mark distinctive enough to warrant protection and register with the USPTO but has not yet done so
Traditionally, the secretary of a corporation has ______ authority to certify the records and resolutions of the company.
implied
In Metro-Goldwyn-Mayer v. Grokster, the US Supreme Court ruled
in favor of MGM because the evidence indicated Grokster's intent to infringe
A company goes "public" through the use of a(n) ____, when it sells its voting common shares for the first time to outside investors.
initial public offering
According to the Revised Uniform Partnership Act (RUPA), when a partner exercises a rightful dissociation, the partner
is no longer liable for debts incurred by the partnership
If the union chooses not to bring a grievance to arbitration, the individual union member is normally ____ to pursue a lawsuit against the employer to enforce contract provisions.
is not authorized
A sole proprietorship
is not subject to corporate income taxation
General partners have ____ liability for any debts and liabilities related to operation of the partnership.
joint and several
Carmen, Esther, and Dan have a general partnership to operate a construction company. Carmen owns 60% of the company and Esther and Dan each own 20%. A passerby was recently injured at one of their sites and obtained a judgment against the company for her extensive medical bills and other damages. If the business' assets are insufficient to cover the damages, the general partners' personal assets are at risk
jointly and severally, regardless of their percentage of ownership interest in the partnership
The chief drawback to the sole proprietorship form of entity is _____.
lack of protection for personal assets from business liabilities
A company manufactures holiday themed gifts for retail stores. In August, management and labor began to negotiate a new union contract. As negotiations drag into October, the union threatens to strike. Management becomes concerned that a pre-holiday season strike would damage profitability to the point where the company would be devastated. Management decides to shut down the business and layoff all employees until the union agrees to bargain in good faith. Which of the following describes management's actions?
legal, as a lockout
Those that have an ownership interest as principals in an LLC are called
members
Max is a waiter at a five-star restaurant owned by Chef Henri. Daniel, a chef from a less popular restaurant, offered Max $500 to provide him with Chef Henri's signature dish recipe. Considering that the recipe is one of the trade secrets of Chef Henri's restaurant, Max will most likely be charged with ___.
misappropriation
A patent is a government-sanctioned _____ right that allows an inventor the exclusive entitlement to make, use, license, and sell his or her invention for a limited period of time.
monopoly
To qualify for a patent, the applicant must satisfy the _____ standard and prove that the invention or process is unique, original, and that no other identical invention or process exisits.
novelty
The employees of the RockSolid Furniture Company want to organize and form a collective bargaining unit. According to procedure set by the National Labor Relations Act (NLRA), the first step they need to take to form a labor union is to ___.
obtain authorization cards
When is the choice of manager-managed or member-managed made for an LLC?
on the public filing of the articles of organization
Management agreements for an LLC are sometimes called
operating agreements
LLCs are not taxed at the entity level, but principals pay tax on any distribution by the LLC. This is called
pass-through taxation
The Equal Opportunity Commission (EEOC) is an administrative agency that carries out federal workplace antidiscrimination laws by doing all of the following, except
pursuing every employee complaint that is properly filed
Corporate bylaws typically set the procedures and requirements for electing a board of directors. When the bylaws specify the number of shareholders who must be present to hold a vote, this is known as the _______ requirement.
quorum
Which of the following is an improper application of a bona fide occupational qualification (BFOQ)
race to hire an office admin.
The Private Securities Litigation Reform Act (PSLRA) of 1995 made it more difficult to pursue litigation based solely on overly optimistic forecasts by a company's executives by providing a(n)
safe harbor
A(n) _____ is any investment that involves a person giving something with an expectation of profit through the efforts of a third party.
security
A group of eligible employees want to form a union. Which step in forming a union sets the process in motion?
signed authorization cards
Limited partners are sometimes referred to as ____.
silent partners
Although both common stockholders and preferred stockholders share in the profits, common stockholders are _____ to preferred stockholders
subordinate
"Cubism" is a popular brand of household storage solutions. The mark "Cubism" best fits into the _____ category.
suggestive trademark
To establish a successful claim against an employer for violation of the Equal Pay Act, a plaintiff must show all of the following except,
the employer has an established seniority or merit system for earnings
If a strike is commenced to ____ rather than for economic reasons, the striking employees are entitled to immediate reinstatement with back pay once they unconditionally return to work.
unfair labor practices
When a corporation seeks a more significant amount of capital, the corporation may turn to a
venture capital firm
Anna works at Zeal-Us Inc. She and her coworkers have been going on strike for two hours every alternate day to protest the unfair termination of one of their colleagues. Their union has not authorized the strike. This is an example of a ____.
wildcat strike