Q&A Hero

Q: Which of the following is true of a union shop agreement? A) The employee must join the union within a certain time after employment. B) The employee does not join the union but pays an agency fee. C) The employee must be a skilled worker represented by more than one union. D) The employee must be represented by more than one union.

Q: Viola is a director of Water Pure Corporation. With respect to Water Pure, Viola's most important right is the right of a. compensation. b. indemnification. c. participation. d. certification.

Q: Subjects that are not compulsory or illegal are known as ________ subjects of collective bargaining, which may be bargained for if the company and union agree to do so. A) secondary B) alternative C) permissive D) conditional

Q: Reba is a director of Quantum Mechanix Corporation. Reba's rights, as a di­rector, do not include a right to a. indemnification. b. inspection. c. participation. d. self-dealing.

Q: Which of the following is a compulsory subject during collective bargaining? A) health benefits B) closed shop recognition C) corporate reorganization D) workplace location

Q: Sophie and Tiny incorporate their beverage-container business as U-Twist Products, Inc. The first board of directors may be appointed by the firm's a. board of directors. b. incorporators. c. officers. d. shareholders.

Q: The act of negotiating contract terms between an employer and the members of a union is known as ________. A) mediation B) arbitration C) collective bargaining D) litigation

Q: Bret and Courtney form Delite Donuts, Inc. Ultimate responsibility for pol­icy decisions necessary to the management of corporate affairs rests with Delite's a. board of directors. b. incorporators. c. officers. d. shareholders.

Q: An employer threatening to close an organization because employees of an organization formed a union is considered an unfair labor practice.

Q: Section 8(a) of the NLRAmakes it an unfair labor practicefor an employer to interfere with, coerce, or restrain employees from exercising their statutory right to form and join unions.

Q: Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her per­sonal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants a. a bonus to Niki for financial maneuvers. b. a discharge for O.K. in bankruptcy. c. a pierce of O.K.'s corporate veil. d. a review of Pure Fuel's articles of incorporation.

Q: ________ prohibits unions from engaging in unfair labor practices that interfere with a union election. A) The Wagner Act B) Section 7 of the NLRA C) Section 8(a) of the NLRA D) Section 8(b) of the NLRA

Q: Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the implied power to a. issue stocks and bonds. b. execute contracts and negotiable instruments. c. buy and sell (or lease) property. d. perform all acts reasonably appropriate and necessary to accom­plish its corporate purposes.

Q: Which of the following is a provision of Section 8(a) of the NLRA? A) prohibits unions from engaging in unfair labor practices that interfere with a union election B) makes it an unfair labor practice for an employer to restrain employees from forming and joining unions C) enables employees to opt out of unions by organizing a decertification election D) permits employees and union officials to engage in union solicitation on company property

Q: Rapid Pest Control itself out to others as being a corporation but makes no attempt to incorporate. Ponce signs a contract with Rapid Pest Control that is not performed. Ponce files a suit against the firm. The court will likely hold that Rapid Pest Control is a. a corporation by estoppel. b. an alien corporation. c. an S corporation. d. ultra vires.

Q: How is Social Security awarded in the United States?

Q: Start-Up Corporation substantially complies with all conditions prece­dent to incorpo­ration. Start-Up has a. corporate existence by estoppel. b. de facto existence. c. de jure existence. d. ultra vires existence.

Q: Like the bylaws of other corporations, the bylaws of Farmland Equipment, Inc., a. establish the operating name of the corporation. b. establish the value and classes of corporate stock. c. were adopted at its first organizational meeting. d. were submitted for approval to the public official in charge.

Q: Self-employed individuals are required to pay Social Security contributions under the ________ Act.

Q: Sullivan and Taylor want to form a corporation to provide catering services. The first step in the incorporation procedure is to a. file the articles of incorporation. b. hold the first organizational meeting. c. secure a corporate name. d. select a state in which to incorporate.

Q: Under the ________ Act, employees must make contributions (i.e., pay taxes) into the Social Security fund.

Q: The abbreviation "P.A." in the name "Painless Dental, P.A." means that this organization is a. a private association. b. a professional association. c. a public association. d. a publicly administered corporation.

Q: The ________ system was established to provide limited retirement and death benefits to covered employees and their dependents.

Q: In 1935, Congress established a(n) ________ to assist workers who are temporarily unemployed.

Q: Boutique Corporation would like to change its corporate status to avoid in­come taxes at the corporate level. To qualify, the shareholders must not be a. corporations. b. estates. c. individuals. d. partnerships.

Q: Frida and Gregor want to market a new line of fishing gear. To avoid in­come taxes at the corporate level, they should form a. a C corporation. b. a close corporation. c. an S corporation. d. a private corporation.

Q: To assist workers who are temporarily unemployed, the ________ Act requires employers to pay unemployment contributions.

Q: Convenience Mart, Inc., is a closely held corporation. Convenience Mart is a. eligible to make public offerings of securities. b. exempt from filing a certificate of incorporation. c. generally allowed to restrict the transfer of its stock. d. taxed in the same manner as a partnership.

Q: Workers who quit work without just cause can claim unemployment benefits.

Q: The shares of Capital Corporation are publicly traded in securities mar­kets. Capital Corporation is a. a private corporation. b. a privately held corporation. c. a public corporation. d. a publicly held corporation.

Q: Under the Federal Unemployment Tax Act (FUTA), employers are exempted from paying unemployment taxes.

Q: Gelato Ice, Inc., is incorporated in the state of New Jersey and is doing busi­ness in the state of New York. In New York, Gelato is properly re­ferred to as a. a domestic corporation. b. a foreign corporation. c. an alien corporation. d. a de jure corporation.

Q: Which of the following is true of Social Security? A) The Social Security system operates like a savings account. B) Current Social Security contributions are used to pay past and future Social Security claims. C) An employee must pay taxes into the Social Security fund, and the employee's employer must pay a matching amount. D) Self-employed individuals are exempt from making contributions to the Social Security system.

Q: Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its timber operation. In the course of his employment, Niles disposes of the operation's waste illegally. Orson is a Mountaintop shareholder. Liability for this crime most likely rests with Orson to a. no extent. b. the proportionate extent of the number of shares Orson owns. c. the amount of Orson's investment in the firm. d. the full extent.

Q: Which of the following is not a Social Security benefit? A) retirement benefits B) disability benefits C) Medicare D) workers' compensation

Q: Felicity and Gideon want to form and do business as Home Healthcare Corporation. A corporation is a. a natural person. b. a tangible person. c. an artificial person. d. a visible person.

Q: Under the ________ and state laws enacted to implement the program, employers are required to pay unemployment contributions (taxes). A) FLSA B) FMLA C) FUTA D) FICA

Q: What is the Family and Medical Leave Act (FMLA)? How is an employee covered under it?

Q: Skyla and Terry want to form and do business as Unbound Games Corporation. Most statutes governing the formation and use of corporations are guided by a. city or county corporate codes. b. the Entrepreneur's Corporate Handbook. c. the federal Administrative Procedure Act. d. the Revised Model Business Corporation Act.

Q: Under ERISA, ________ occurs when an employee has a nonforfeitable right to receive pension benefits.

Q: Shareholders are personally liable for the debts of a corporation.

Q: Before shareholders can bring a derivative suit, they must submit a written demand to the corporation, asking the board of directors to take action.

Q: The ________ permits employees and their beneficiaries to continue their group health insurance after the voluntary or involuntary termination of a worker's employment.

Q: A shareholder's right to inspect corporate books and records is unlimited.

Q: The ________ is a federal act that guarantees workers up to 12 weeks of unpaid leave in a 12-month period to attend to family and medical emergencies and other specified situations.

Q: Shareholders' meetings need not occur at any certain interval.

Q: Vesting occurs when an employee has a nonforfeitable right to receive pension benefits.

Q: The Consolidated Omnibus Budget Reconciliation Act (COBRA) is an act designed to prevent fraud and other abuses associated with private pension funds.

Q: Shareholders must approve fundamental changes affecting the corpora­tion before the changes can be implemented.

Q: A director does not need to disclose any conflict of interest before voting on a proposed transaction.

Q: The Fair Labor Standards Act (FLSA) guarantees workers unpaid time off from work for family and medical emergencies and other specified situations.

Q: A director must make a full disclosure of any potential conflict of interest that might arise in any corporate transaction.

Q: The Employee Retirement Income Security Act (ERISA) is administered by the U.S. Department of Labor.

Q: ________ occurs when an employee has a nonforfeitable right to receive pension benefits. A) Vesting B) Easement C) Anti-lapse D) Reconciliation

Q: Directors are entitled to use confidential corporate information for their personal advantage.

Q: The ________ is a federal act designed to prevent fraud and other abuses associated with private pension funds. A) ERISA B) COBRA C) FLSA D) FMLA

Q: A director or officer is not liable to the corporation for a bad business decision.

Q: The ________ is a federal law that permits employees and their beneficiaries to continue their group health insurance after an employee's employment has ended. A) FLSA B) FMLA C) ERISA D) COBRA

Q: The board of directors normally can remove a corporate officer at any time with or without cause.

Q: To be covered by the FMLA, an employee must ________. A) have worked for the employer for at least three years B) have performed more than 1,250 hours of service during the previous 12-month period C) not have claimed maternity leave in the past D) be suffering from a serious physical injury or ailment

Q: In most states, one individual cannot be both an officer and a director.

Q: Directors have a right to participate in all board of directors' meetings.

Q: The ________ guarantees workers unpaid time off from work for family and medical emergencies. A) FLSA B) OSHA C) FMLA D) ERISA

Q: Many states permit a corporate board to have fewer than three directors.

Q: Which of the following is true of COBRA? A) Government employees are subject to parallel provisions found in the Public Health Service Act. B) Under most circumstances, COBRA coverage is available for 24 months after employment has ended. C) An employer is under no obligation to notify covered employees and their beneficiaries of their rights under COBRA. D) To continue coverage after employment has ended, a person need not pay the group rate premium.

Q: Shareholders are the ultimate authority in every corporation.

Q: Outline the minimum wage requirement established by the Fair Labor Standards Act. How are wages paid to a tipped employee?

Q: Describe the measures taken by the U.S. Department of Labor against oppressive child labor.

Q: When the corporate privilege is abused for personal benefit, the courts will require the owners to assume personal liability.

Q: The ________ exemption is an exemption that applies to employees who will be paid by the client or customer, whose primary duty is making sales or obtaining orders or contracts for services, and who are customarily and regularly engaged away from the employer's place of business.

Q: Express powers of a corporation are found in its articles of incorporation.

Q: Under the FLSA, an employer cannot require nonexempt employees to work more than 40 hours per week unless they are paid ________ of one-and-a-half times their regular pay for each hour worked in excess of 40 hours that week.

Q: Implied powers of a corporation are expressed in state statutes.

Q: The ________ Act forbids the use of oppressive child labor and makes it unlawful to ship goods produced by businesses that use oppressive child labor.

Q: The Fair Labor Standards Act (FLSA) is enforced by the ________.

Q: An incorporator must have an interest in the corporation.

Q: The articles of incorporation serve as a primary source of authority for a corporation.

Q: Software developers and other computer professionals cannot claim overtime pay.

Q: Senior professors and physicists in research laboratories are entitled to federal overtime pay.

Q: The primary document needed to incorporate a business is the articles of incorporation.