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
Business Law
Q:
When competitors agree not to deal with a supplier, customer, or another competitor, it is referred to as a _____.
A. price differential
B. parallel conduct
C. tying arrangement
D. horizontal group boycott
Q:
Which of the following is a difference between vertical restraints and horizontal restraints?
A. Vertical restraints, in general, are based on tacit understanding while horizontal restraints, in general, are based on mutual observation.
B. Vertical restraints eliminate competition, while horizontal restraints promote competition.
C. Vertical restraints are those arising from an agreement among competitors themselves, while horizontal restraints ordinarily are those imposed by suppliers on their buyers.
D. Vertical restraints, in general, are resolved under the rule of reason while horizontal restraints, in general, are per se unlawful.
Q:
Which of the following statements is true of vertical restraints?
A. They typically arise from an agreement among competitors themselves.
B. They are to be resolved under the rule of reason.
C. They are per se unlawful.
D. They tend to drive product prices down and quality up.
Q:
Which of the following is a restraint that arises from an agreement among competitors themselves?
A) Horizontal restraint of trade
B) Franchise tying
C) Vertical restraint of trade
D) Conscious parallelism
Q:
The various horizontal restraints of trade are governed by the _____.
A. Robinson-Patman Act
B. Sherman Act
C. Clayton Act
D. Wagner Act
Q:
The reasonableness of a restraint of trade is largely established by _____.
A. a detailed balancing of the pro- and anticompetitive effects of the situation
B. eliminating competition and facilitating high-profile mergers
C. an analysis of costs and benefits associated with the existing predatory practices and its effects on the government treasury
D. producing circumstantial evidence from participants proving the existence of collusion
Q:
Which of the following is a horizontal restraint of trade?
A. Tying arrangements
B. Resale price maintenance
C. Price fixing
D. Free riding
Q:
Which of the following statements is true of antitrust violation of intellectual property rights?
A. The U.S. Supreme Court has ruled that patents should automatically be treated as monopolies.
B. Abuse of the market power conferred by a patent must be presumed and need not be proven.
C. The presence of intellectual property rights suppresses innovation and investment.
D. Antitrust violations of intellectual property do not occur unless some competitive wrong is identified.
Q:
When competitors collude, conspire, or agree among themselves, they are engaging in _____.
A. horizontal restraints of trade
B. resale price maintenance
C. free riding
D. tying arrangements
Q:
Which of the following is forbidden under Section 1 of the Sherman Antitrust Act, 1890?
A. Monopolization
B. Restraints of trade
C. Attempts to control
D. Conspiracies to monopolize
Q:
Section 2 of the Sherman Antitrust Act, 1890 forbids:
A. price discrimination.
B. monopolization.
C. tying arrangements.
Answer: B
Q:
Which of the following statements is true of the Sherman Antitrust Act, 1890?
A. It provides injunctive relief under civil law.
B. It does not entail criminal penalties in case of any violations of the act.
C. It encourages monopolization.
D. It facilitates the practice of interlocking directorates.
Q:
Which of the following forbids price discrimination, tying arrangements, mergers restraining commerce or tending to create a monopoly, and interlocking directorates?
A. The Clayton Act
B. The Sherman Antitrust Act
C. The RobinsonPatman Act
D. The SarbanesOxley Act
Q:
The Federal Trade Commission's primary enforcement device is _____.
A. arbitration
B. the requirements contract
C. imposing criminal penalties
D. the cease and desist order
Q:
Which of the following statements is true of the Clayton Act?
A. Injured parties cannot sue for injunctive relief under the Clayton Act.
B. The Clayton Act opens participants to criminal penalties in case of any violation of the act.
C. The Clayton Act does not provide for criminal law remedies.
D. The Clayton Act facilitates tying arrangements.
Q:
An exclusive dealing contract is one in which defendants have simply observed each others pricing behavior over time, and they are able therefore to anticipate each others future conduct and act accordingly without any direct collusion.
Q:
As a result of the existence of an exclusive deal, competitors are denied a source of supply or a market for sale.
Q:
Price discrimination involves selling substantially identical goods at reasonably contemporaneous times to different purchasers at different prices.
Q:
A seller may resist a RobinsonPatman charge by establishing that the price differential is attributable to cost savings.
Q:
Price discrimination involves selling services at reasonably contemporaneous times to different purchasers at different prices, where the effect is to harm competition.
Q:
The U.S. Supreme Court has ruled that patents should not automatically be treated as monopolies.
Q:
Many businesses in competition meant that none of them could corner economic, political, or social power. Which of the following goals of antitrust law best describes the above statement?
A) The preservation of competition
B) The preservation of small businesses
C) An expression of political radicalism
D) The preservation of democracy
Q:
Conscious parallelism, which is allowed under the Sherman Act, arises from an explicit agreement between competitors.
Q:
A horizontal group boycott is a situation where competitors agree not to deal with a supplier, customer, or another competitor.
Q:
Vertical restraints are those arising from an agreement among competitors.
Q:
In the 2007 Leegin case, the Supreme Court ruled that agreements specifying minimum resale prices must be analyzed under the rule of reason.
Q:
Vertical territorial and customer restraints are to be resolved under the rule of reason.
Q:
Tying arrangements are a form of nonprice vertical restraint.
Q:
The rule of reason refers to the Supreme Courts position that all restraints of trade are per se unlawful.
Q:
A company agrees to restrict sales to the east of the city, and its competitor agrees to restrict sales to the west of the city. This arrangement is lawful under the Sherman Act.
Q:
A policy of conscious parallelism is not a violation of the Sherman Act.
Q:
Explain the three critical stages of the securities registration process.
Q:
Describe Section 11 of the 1933 Securities Act and explain the defense against it.
Q:
The Sherman Antitrust Act forbids monopolization, attempts to monopolize, and conspiracies to monopolize.
Q:
Injured parties may sue for injunctive relief and treble damages under the Clayton Act.
Q:
In general, criminal law remedies are not available under the Clayton Act.
Q:
When competitors collude, conspire, or agree among themselves, they are engaging in vertical restraints of trade.
Q:
What are the components of a registration statement?
Q:
Describe the differences between the two classes of partners in a limited partnership.
Q:
List the potential problems with the partnership form of doing business.
Q:
Define and describe common stock, preferred stock, and debt.
Q:
Define the term initial public offering (IPO).
Q:
Under the 1933 Act, a draft prospectus is included with the filed registration statement. This is known as a _____ prospectus.
A. greenmail
B. red herring
C. crown jewel
D. blue sky
Q:
The principal defense against a Section 11 claim is _____.
A. proxy access
B. disgorgement
C. due diligence
D. broker voting
Q:
_____ defense refers to a resistance tactic in which the targets management uses corporate cash to buy back the tender offeror's current stake, with a significant premium to "go away."
A. Greenmail
B. Crown jewel
C. Poison pill
D. Golden parachute
Q:
The _____ defense against a takeover involves the target company selling off its most attractive assets.
A. greenmail
B. crown jewel
C. poison pill
D. golden parachute
Q:
Which of the following is a management's takeover defense strategy that gives current shareholders a tender offer-triggered right to buy additional stock at a discount, thus diluting the hostile bidders shares?
A. Golden parachute
B. Greenmail
C. Poison pill defense
D. Crown jewel defense
Q:
_____ refers to the severance pay packages the target's officers may have negotiated to protect themselves in the event of a takeover.
A. Greenmail
B. Golden parachutes
C. Crown jewels
D. Poison pill
Q:
Which of the following presents the companys assets, liabilities, and equity in a registration statement?
A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Supplemental information
Q:
Identify the correct statement about the Securities Act of 1933.
A. It allows interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
B. It ensures partial disclosure of material facts about the investment opportunity to offerees.
C. It does not guarantee the economic merits of any investment opportunity.
D. It gives the Securities and Exchange Commission the power to suspend trading if it suspects price manipulation.
Q:
Which of the following statements is true of the Securities Act of 1934?
A. It allows interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
B. It ensures partial disclosure of material facts about the investment opportunity to offerees.
C. It guarantees the economic merits of any investment opportunity.
D. It gives the Securities and Exchange Commission the power to suspend trading if it suspects price manipulation.
Q:
Which of the following is true of the Securities Act of 1933?
A. It guarantees the economic merits of any investment opportunity.
B. It prohibits full disclosure of all material facts about the investment opportunity to offerees before they invest.
C. It forbids any interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
D. The Securities and Exchange Commission has repealed the 1933 Acts prescribed relationship between solicitation or sales of a security and the registration process.
Q:
According to the 1933 Act, during the _____ period, no sales are permitted but a limited amount of solicitation is allowed.
A. shelf registration
B. waiting
C. prefiling
D. posteffective
Q:
Carey, the owner of a corporation, uses the business checking account to pay his personal bills. He also makes business deals knowing the business cannot pay the invoices. If he is sued by one of his creditors, which of the following courses of action is most likely to be taken by the court?
A. Pierce the corporate veil.
B. Apply the business judgment rule.
C. Terminate the corporation.
D. Impose the Rochdale Principles.
Q:
Which of the following legal doctrines will the court apply if the owners of a corporation fail to maintain a formal legal separation between their business and their personal financial affairs?
A. Respondeat superior
B. Piercing the Corporate Veil
C. The Business Judgment Rule
D. The Rochdale Principles
Q:
Which of the following acts prohibits broker voting unless specific instructions are received from the shareholder?
A. The Private Securities Litigation Reform Act
B. The Securities Exchange Act
C. The National Securities Markets Improvement Act
D. The DoddFrank Act
Q:
Which of the following statements is true of the sole proprietorship form of business organization?
A. Legal filings are required to establish a sole proprietorship.
B. A sole proprietorship is a separate legal entity.
C. The owner of a sole proprietorship is not personally liable for all obligations of the business.
D. A sole proprietorship is not a taxable entity.
Q:
Which of the following refers to a business venture that has no legal existence apart from the owner?
A. Corporation
B. Limited liability company
C. Sole proprietorship
D. Partnership
Q:
Which of the following statements is true of a limited liability partnership?
A. It is taxed like a general partnership.
B. No annual filings or fees are required.
C. To bring a limited liability partnership into existence, the owners file articles of organization with the state.
D. It is more like a limited liability company than a general partnership.
Q:
The legal doctrine that makes the employer liable for an employee's acts is _____.
A. respondeat superior
B. res ipsa loquitur
C. piercing the corporate veil
D. caveat emptor
Q:
If a delivery truck driver negligently hits a child in the street, the company for which the driver works will be liable for the injuries under the legal doctrine of _____.
A. caveat emptor
B. respondeat superior
C. piercing the corporate veil
D. res ipsa loquitur
Q:
On termination of a corporation, which of the following has the highest priority for payment?
A. Dividend arrearages owed to preferred shareholders
B. Claims of common shareholders
C. Claims of creditors
D. Claims of directors
Q:
Which of the following is a feature of a corporation?
A. Double taxation
B. Unlimited liability
C. Definite duration
D. Prohibition of tax-deductible fringe benefits
Q:
Although the law of partnerships originated in the common law, all states except _____ adopted the Uniform Partnership Act.
A. Louisiana
B. Alabama
C. Nevada
D. Wisconsin
Q:
Which of the following statements is true of the formation of partnerships?
A. Partnership accounting systems are the least expensive of all the business forms.
B. The partnership form generally requires a number of annually recurring events such as state filings or statutorily mandated meetings of owners.
C. The vast majority of partnership agreements are written.
D. The co-owners of a partnership must intend to join in the sharing of risks and rewards via the active conduct of business.
Q:
Which of the following is true of the partnership form of business?
A. The vast majority of partnership agreements are written.
B. An assignee of a partnership interest has the right to participate in control and enjoys the status of partner.
C. The partners are not personally liable for the partnership's obligations should it default.
D. Events in the private lives of the partners can seriously impact the business venture.
Q:
Which of the following is true of limited liability companies?
A. The management structure of a limited liability company is extremely rigid.
B. A single-member limited liability company cannot be treated as a corporation.
C. The operating agreement of a limited liability company is most likely to be in the oral form.
D. To create a limited liability company, the owner(s) must file articles of organization with the state.
Q:
Which of the following statements about corporations is true?
A. A promoter files articles of incorporation with the state government to create a corporation.
B. When a corporations liabilities exceed its assets, its creditors can reach the personal assets of the shareholders.
C. A corporation need not establish books of accounts.
D. When an employee or director commits a tort or crime while conducting corporate business, the corporation is not liable for the consequences.
Q:
Corporations distribute their aftertax income to their shareholders as _____.
A. fringe benefits
B. dividends
C. exempt securities
D. disgorgements
Q:
Equity holders claims are always satisfied before creditors claims.
Q:
Although shareholders are the owners of the corporation, control rests with the board.
Q:
The Securities Act of 1933 seeks to ensure full disclosure of all material facts about the investment opportunity to offerees before they invest.
Q:
Online trading services provide professional guidance to investors.
Q:
Blue sky laws are primarily applicable to solely intrastate offerings.
Q:
In general, the creditors of a corporation cannot reach the personal assets of the shareholders to satisfy the corporations obligations.
Q:
Closely held corporations face the loss of limited liability through application of the doctrine known as piercing the corporate veil.
Q:
An S corporation pays double tax on its income.
Q:
Common stockholders share all three property rights associated with stock ownership in proportion to their holdings.
Q:
In the context of the capital structure of corporations, equity capital has a short-term horizon.
Q:
In a limited liability company, the owners are referred to as interest holders.