Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Questions
Q:
Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies together, and three workers can produce 65 cookies together. What is the average product of the first two workers?A) 15 cookies B) 20 cookies C) 17.5 cookies D) 35 cookies
Q:
Performance that provides a party with most of the benefits of a conÂtract, in spite of a deviation from the terms, is complete performance.
Q:
Interests in oil, gas, and mineral rights are considered statutorily defined securities.
Q:
Concurrent conditions occur only when the parties to a contract are reÂquired to perÂform their respective duties simultaneously.
Q:
The Howey test is used to determine if an arrangement is an investment contract.
Q:
A condition subsequent terminates a party's promise to perform.
Q:
An investment contract is a flexible standard for defining a security.
Q:
If a contract condition is not satisfied, the obligations of the contracting parties are discharged.
Q:
The SEC is concerned with regulating issues and trading of securities alone and cannot regulate the activities of securities brokers and advisors.
Q:
Which of the following is the formula used for computing an accounting profit?
A) accounting profits = total revenue - implicit costs
B) accounting profits = total revenue - (implicit + explicit costs)
C) accounting profits = total costs - total revenue
D) accounting profits = total revenue - explicit costs
Q:
The most common way to discharge a contract is by breach.
Q:
A "whistleblower bounty program" allows a person who provides information that leads to a successful SEC action in which more than $1 million is recovered to receive 10 percent to 30 percent of the money collected.
Q:
An event must be certain to occur to constitute a contract condition.
Q:
The Securities Act of 1933 regulates the issuance and sale of securities online.
Q:
Any third party beneficiary to a contract who is not an intended beneficiary is incidental.
Q:
Continuous reporting to investors and the SEC is a requirement imposed by the Securities Act of 1933.
Q:
An incidental beneficiary can sue directly to enforce a promisee's promise.
Q:
The Securities Act of 1933 is a federal statute that primarily regulates the issue of securities by companies and other businesses.
Q:
If a consumer chooses a combination of goods that are inside of her budget line, than
A) the consumer is maximizing her satisfaction.
B) the consumer is spending more than her current income.
C) the consumer has a constant marginal rate of substitution for the two goods.
D) the consumer is not maximizing her satisfaction.
Q:
An "asÂsignment of all rights" absolves the assignor of all liability under the contract that created the rights.
Q:
Courts apply the ________ in determining whether an arrangement is an investment contract.
A) Howey test
B) misappropriation theory
C) strict scrutiny test
D) intermediate scrutiny test
Q:
A delegation relieves the party making it of the obligation to perÂform.
Q:
A(n) ________ is a flexible standard for defining a security.
A) red herring prospectus
B) investment contract
C) certificate of interest
D) debenture
Q:
A delegatee is a party who transfers his or her obligation under a contract to another party.
Q:
Interests in oil, gas, and mineral rights are classified as ________.
A) statutorily defined securities
B) implicit securities
C) investment contracts
D) common securities
Q:
No special form is required to create a delegation of duties.
Q:
Interests or instruments that are expressly mentioned in securities acts are known as ________.
A) common securities
B) implicit securities
C) investment contracts
D) statutorily defined securities
Q:
Dr. Rodriguez is consuming beer and wine. At his current level of consumption, the marginal utility per dollar is 30 units for beer and 15 units for wine. Dr. Rodriguez shouldA) consume twice as much beer as wine. B) consume twice as much wine as beer.C) increase his consumption of beer relative to wine. D) increase his consumption of wine relative to beer.
Q:
A right to receive damages on a breach of a contract for a sale of goods may be assigned.
Q:
Which of the following is classified under "common securities"?
A) real estate
B) bullion
C) a debenture
D) a bank deposit account
Q:
The assignment of the same contract right to two different parties results in their "splitting the difference."
Q:
Which of the following is regulated by the Securities Act of 1933?
A) fraud in mortgage transactions
B) hedge funds and derivatives
C) reporting to investors
D) the issue of securities online
Q:
A contract can prevent the assignment of the right to receive funds.
Q:
The ________ is a federal statute primarily designed to prevent fraud in the trading of securities after they are issued.
A) Securities Act of 1933
B) Securities Exchange Act of 1934
C) Sarbanes-Oxley Act of 2002
D) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Q:
All rights can be assigned.
Q:
The ________ is a federal statute that primarily regulates the issuance of securities by companies and other businesses.
A) Securities Act of 1933
B) Securities Exchange Act of 1934
C) Sarbanes-Oxley Act of 2002
D) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Q:
Income elasticity of demand reflectsA) the change in total quantity demanded divided by the total change in income.B) the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change.C) the responsiveness of income of producers to a change in quantity sold of the good.D) the responsiveness of demand to changes in income.
Q:
An unconditional assignment of rights in a contract will extinguish the rights of the asÂsignor.
Q:
Secret profits obtained by a director or officer cannot be recovered by a corporation.
Q:
An obligor is a person to whom a duty is owed.
Q:
The duty of loyalty requires directors and officers to subordinate their personal interests to those of the corporation and its shareholders.
Q:
The person to whom rights in a contract are assigned is the assignor.
Q:
The determination of whether a corporate director or officer has met his or her duty of care is measured in hindsight.
Q:
A transfer of contract rights to a third party is an assignment.
Q:
The business judgment rule states that corporate directors and officers are liable to the corporation or its shareholders for even honest mistakes of judgment.
Q:
ʺPrice elasticity measures how many more units of a good that consumers will buy given a decrease in price.ʺ Do you agree or disagree? Explain.
Q:
Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement.
The writing that Kelly and Lucas signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. an agreeably integrated contract.
d. an obviously integrated contract.
Q:
The president of a corporation is an example of a corporate officer.
Q:
Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement.
Lucas later disputes some of the provisions of the deal with Kelly. If the dispute results in litigation, a court will most likely exclude evidence that
a. buttresses the written terms.
b. contradicts the written terms.
c. duplicates the written terms.
d. reinforces the written terms.
Q:
The election of directors of the corporation can be held by electronic transmission.
Q:
Glen and Hadley sign a written contract. Glen claims that the parties later orally agreed to modify the contract. Any oral modification is likely not enforceable if it falls under
a. the doctrine of promissory estoppel.
b. the "main purpose" exception.
c. the "partial performance" exception.
d. the Statute of Frauds.
Q:
A shareholder's authorization of another person to vote the shareholder's shares at a shareholders' meeting in the event of the shareholder's absence is known as a moxie.
Q:
Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementOdell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
The writing that Odell and Paula signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
Q:
Once declared, a cash or property dividend cannot be revoked.
Q:
Which of the following is a true statement?A) Any property right system will yield a situation in which all externalities are internalized. B) Voluntary agreements can always yield a situation in which all externalities are internalized.C) Opportunity costs always exist with whoever has property rights.D) Opportunity costs turn external costs into social costs.
Q:
Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementOdell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
Paula later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of
a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.
Q:
The shareholders are responsible for determining how much will be paid in dividends.
Q:
Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
Q:
Shareholder resolutions are usually made when the corporation is soliciting proxies from its shareholders.
Q:
Consumer Goods, Inc., and Delta Distribution, Inc., sign a written conÂtract for a sale of goods. To be enforceable, this written contract must include
a. a correct title, such as "Purchase Order" or "Sales Invoice."
b. a declaration of the subject matter.
c. a quantity term.
d. the parties' names.
Q:
Straight voting gives a minority shareholder a better opportunity to elect someone to the board of directors.
Q:
Which country has the highest per capita health care expenditures in the world?A) Canada B) France C) United States D) Japan
Q:
Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against
a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.
Q:
Once a quorum is present, the withdrawal of shares does not affect the quorum of the meeting.
Q:
Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro faxes NFC a memo on Macro's letterhead that summarizes the items on which they agree. NFC begins to perform, but Macro refuses to pay. Between Macro and NFC, the memo is
a. an oral contract.
b. a pre-contract.
c. a written contract.
d. no contract.
Q:
A system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open is known as cumulative voting.
Q:
Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
a. every term.
b. the essential terms.
c. the preliminary terms.
d. the qualitative terms.
Q:
Shareholders do not have to attend a shareholders' meeting to vote.
Q:
Nina and Owen enter into an oral contract for Nina's sale to Owen of a laÂser printer for $400. Before Owen takes possesÂsion of the printer, the conÂtract is enforceable by
a. either party.
b. Nina only.
c. neither party.
d. Owen only.
Q:
The annual shareholders' meeting is held to elect new shareholders.
Q:
When examining the financial status of households, wealth isA) synonymous with income.B) a flow variable whereas income is a stock variable.C) a stock variable and includes both tangible assets and human capital.D) not as important as income because wealth does not change over time.
Q:
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
Q:
The shareholders of a corporation act as agents of the corporation.
Q:
Ollie buys a cup of coffee for $2, a magazine for $5, and a boombox for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at, or for more than, a certain price is governed by
a. the common law.
b. the parol evidence rule.
c. the parties' agreement.
d. the Uniform Commercial Code.
Q:
Marshall is a purchasing agent for DigitoolArt Corporation. His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation. Assume that Bronson, a computer sales representative, pays Marshall a $20,000 kickback to purchase from him computers needed by DigitoolArt Corporation. What breach of the duty of loyalty has Marshall committed here?
A) competing with the corporation
B) making a secret profit
C) self-dealing
D) usurping a corporate opportunity
Q:
Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
Q:
Jameson works for Fishy-Mart Corporation, a chain of superstores that sells large quantities of seafood. His job is to locate future sites for Fishy-Mart stores. Jameson finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart store. He asks his friend to purchase the property from its current owner and has a secret agreement with his friend to split the profits when he sells the property to Fishy-Mart. Jameson, without disclosing his interest in the property, recommends the site to Fishy-Mart, which then purchases the property from Jameson's friend. The friend splits the profits with Jameson. What breach of the duty of loyalty has Jameson committed?
A) usurping a corporate opportunity
B) self-dealing
C) competing with the corporation
D) proxy
Q:
Helen is the vice-president of Gotspeed Corporation, a company that designs, manufactures and sells sports shoes. Nestor, an independent entrepreneur, designs a new shoe that helps the user's foot grip the shoe better, and he calls it the Anklator. Nestor's friend schedules an appointment for him to meet Helen and present the Anklator for possible adoption by Gotspeed. Instead of presenting the opportunity to Gotspeed's board of directors, Helen pays Nestor's asking price and purchases the Anklator design for herself. She then quits and forms her own company to manufacture and sell Anklator shoes. Helen has breached her duty of loyalty to Gotspeed Corporation by ________.
A) self-dealing
B) usurping a corporate opportunity
C) making a secret profit
D) competing with the corporation
Q:
Laws that outlaw union shops and which may be passed (or not) by individual states are calledA) Smoot-Hawley laws. B) pro-scab laws.C) free-rider laws. D) right-to-work laws.
Q:
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $270 worth of digital music from eMusic.com. To be enforceable, the contract that must be in writing is the purchase of
a. the digital music, the MP3 player, and the speakers.
b. the MP3 player and the speakers only.
c. the MP3 player only.
d. the speakers only.