Multiple Choice Answers

Question 1
What type of depreciation occurs when an asset can no longer provide services at the level originally intended?
a. Physical depreciation
b. Market depreciation
c. Cost depreciation
d. Functional depreciation

Question 2
If comparative balance sheets indicate no notes receivable on the first, or base, date and a $50,000 note receivable on the later date, the increase of $50,000:
a. can be stated as 0%
b. can be stated as 100% increase
c. can be stated as 500% increase
d. cannot be stated as a percentage

Question 3
Preferred stock with a preferential right to dividends in arrears is referred to as cumulative preferred.
True
False

Question 4
Another term often used to refer to factory overhead is:
a. surplus
b. other manufacturing cost
c. supervisory cost
d. factory burden

Question 5
If merchandise inventory is being valued at cost and the price level is consistently rising, which method of costing will yield the largest gross profit?
a. average cost
b. lifo
c. fifo
d. weighted average

Multiple Choice Answers

Question 1
The legislative branch of government is made up of:
A. appointed officials.
B. elected representatives.
C. equal numbers of all political parties.
D. community leaders.
Question 2
Interpretation and determination of violations of the law is the function of:
A. the legislative branch of a government.
B. the judicial branch of a government.
C. the executive branch of a government.
D. none of the three branches of government.
Question 3
The designation not elected by the voters in the Consumer Protection Agency is the:
A. president.
B. governor.
C. mayor.
D. secretary.
Question 4
The agencies outside the executive branch that are headed by groups or individuals are created by the:
A. Congress.
B. Senate.
C. President.
D. judicial branch.
Question 5
The branch of the government that frequently delegates to administrative agencies some of their lawmaking authority is the:
A. legislative.
B. executive.
C. state judiciary.
D. federal judiciary.
Question 6
The Sarbanes-Oxley statute established a board to oversee accounting practices in:
A. the United States.
B. the Netherlands.
C. the United Kingdom.
D. Australia.
Question 7
Beliefs and standards that are considered to be worthwhile are known as:
A. values.
B. morals.
C. ethics.
D. discretions.
Question 8
Governments may impose on individuals a set of duties known as:
A. legal mandates.
B. ethical considerations.
C. legal imperatives.
D. national imperatives.
Question 9
A distinction between law and ethics is that legal mandates are usually more:
A. flexible.
B. precise.
C. obscure.
D. flawed.
Question 10
A __________ makes clear that the company expects its personnel to recognize the ethical dimensions of corporate policies and actions.
A. rule
B. regulation
C. code
D. social action
Question 11
A misdemeanor is usually punished by a fine and/or imprisonment for not more than:
A. three months.
B. six months.
C. eight months.
D. a year.
Question 12
Larceny is often classified as petty or grand, depending upon the:
A. time when the crime was committed.
B. person from whom it was stolen.
C. value of the stolen property.
D. court in which it was referred.
Question 13
The crime of bribery consists of giving or taking money or property of value with the intent of __________ someone.
A. recruiting
B. reappraising
C. appraising
D. influencing
Question 14
The crimes that involve activities intended to obtain goods or to deceive others by making false claims is known as false pretenses and are governed by:
A. state laws and federal laws.
B. executive orders.
C. contract laws.
D. ordinances.
Question 15
Frequently, persons with knowledge of computers access the credit card numbers of consumers who have made purchases on the Internet and use these credit card numbers without authorization. This act constitutes the crime of:
A. identity theft.
B. credit card fraud.
C. false pretense.
D. credit card perjury.
Question 16
The tort of slander does NOT require a(n):
A. indirect defamatory statement.
B. direct defamatory statement.
C. drawing, picture, or cartoon.
D. direct attack.
Question 17
In conducting business, a firm and its owners have the right not to be subjected to:
A. politically correct statements.
B. truthful statements.
C. false and malicious statements.
D. acts of negligence.
Question 18
The branch of the government that frequently delegates to administrative agencies some of their lawmaking authority is the:
A. legislative.
B. executive.
C. state judiciary.
D. federal judiciary.
Question 19
The determinations reached at a hearing conducted by an administrative agency:
A. cannot be appealed through the regular court system.
B. can be appealed through the alternative dispute resolution system.
C. can be appealed through the regular court system.
D. can be appealed only through in-house dispute resolution system.
Question 20
If the person accused of defamation had a special privilege in making the defamatory statement, such as an attorney in a court proceedings, who accuses a witness of lying, the defamed person:
A. cannot recover damages.
B. can recover damages.
C. can file a suit of defamation.
D. can make defamatory statement against attorney.

2
Question 1
The intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party amounts to:
A. fraud.
B. duress.
C. mistake.
D. misrepresentation.
Question 2
An injured party who can successfully prove fraud may have the remedy to:
A. claim specific performance.
B. extend the contract.
C. accept the contract.
D. bring suit for damages.
Question 3
Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. If this power is improperly used to his or her personal advantage, then it amounts to:
A. mistake.
B. misrepresentation.
C. undue influence.
D. duress.
Question 4
Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. Such relationships are found in all of the following, EXCEPT that of a(n):
A. employer and an employee.
B. physician or nurse and a patient.
C. attorney and a client.
D. client and vendor.
Question 5
While courts have long been reluctant to uphold unconscionable contracts, more recently, however, the UCC has made such contracts even less likely to be:
A. enforced.
B. reduced into writing.
C. agreed.
D. notified.
Question 6
According to the __________, uncertainty with respect to specific terms does not necessarily invalidate a contract.
A. Uniform Civil Code
B. Uniform Commercial Code
C. United States Commercial Code
D. Uniform Contract Code
Question 7
The offer and acceptance by the conduct of the parties is called as a(n) __________ contract.
A. express
B. implied
C. conduct
D. social
Question 8
A call for a bid or estimate for materials to be furnished or work to be done is not considered a(n):
A. offer.
B. acceptance.
C. request for proposal.
D. invitation to acceptance.
Question 9
Advertising is generally regarded as a(n):
A. invitation to trade.
B. firm offer.
C. commitment to sell.
D. executory contract.
Question 10
The general rule regarding the effective date and time an acceptance becomes binding is:
A. when the parties intend.
B. three days after receipt of the acceptance.
C. three days after acceptance is sent.
D. upon receipt by the offeree.
Question 11
A legally enforceable contract:
A. must not violate the law.
B. can be void.
C. may contain a malafide intention.
D. need not be valid.
Question 12
Jack promised to pay his nineteen year-old nephew $300 on his twenty-second birthday if he refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:
A. pledge or subscription.
B. forbearance as consideration.
C. general release.
D. implied contract.
Question 13
The three essential characteristics of valid consideration are:
A. accuracy, brevity, and clarity.
B. fulfillment of social, moral and ethical obligations.
C. legality, adequacy, and the possibility of performance.
D. intention, practices, and policies.
Question 14
The element of consideration in a contract refers to the:
A. competence of the parties.
B. purpose of the contract.
C. parties’ exchange of promises.
D. form of the contract.
Question 15
If only one party promises something, such as paying a certain amount of money, and the other party promises nothing, then the agreement lacks:
A. consideration.
B. competence.
C. legality of purpose.
D. offer and acceptance.
Question 16
Certain contracts, such as those involving the sale of personal property for $500 or more:
A. must be orally accepted to be enforceable.
B. must be written to be enforceable.
C. need not be signed to be enforceable.
D. must be divisible in nature.
Question 17
A contract in which some future act or obligation remains to be performed under its terms is known as a(n) __________ contract.
A. executed
B. statutory
C. contingent
D. executory
Question 18
With respect to pledges and subscriptions, courts have generally held that these promises are:
A. unenforceable.
B. enforceable.
C. enforceable only in cases involving amounts greater than $500.
D. unenforceable if it is not made for a reasonable period of time.
Question 19
The Uniform Commercial Code dispenses with the requirement for consideration in contracts that involve:
A. a merchant’s firm written offer of the irrevocable contract.
B. an oral discharge of a claim for an alleged breach of contract.
C. modifications on future contracts.
D. modifications to executed contracts.
Question 20
Courts may justify the enforcement of some contracts, even though there is no consideration, by stating that there was __________ consideration.
A. monetary
B. moral
C. pecuniary
D. fiscal
3
Part 1 of 1 –
Question 1
It is stated that the terms of a written contract may not be changed by evidence of any prior agreement but may be explained, or supplemented, in the:
A. Uniform Commercial Code (UCC).
B. Statute of Frauds.
C. Parol Evidence Rule.
D. English Law.
Question 2
The Statute of Frauds applies only to __________ contracts.
A. administrative
B. executory
C. business
D. notarized
Question 3
When a person dies before settlement of his assets, the estate is settled by a:
A. court-appointed manager.
B. family-appointed administrator.
C. family-appointed manager.
D. court-appointed administrator.
Question 4
A(n) __________ to pay the debts or settle the wrongdoings of another if he or she does not make settlement personally is not enforceable unless it is written.
A. guaranty
B. warranty
C. memorandum
D. evidence
Question 5
To be enforceable, agreements in contemplation of marriage:
A. must be in writing and signed after the marriage.
B. must be in writing and signed before the marriage.
C. can be oral if the parties are both over the age of 21 years.
D. should be in the presence of witnesses.
Question 6
Most contracts made by persons who have not reached the age of majority are:
A. void.
B. valid.
C. voidable.
D. enforceable.
Question 7
Once a minor reaches the age of majority, in order to make the contracts entered into by the minor enforceable, it must be:
A. avoided.
B. validated.
C. disaffirmed.
D. ratified.
Question 8
In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:
A. unenforceable by the minors.
B. enforceable by the minors.
C. enforceable by the parents or the guardians of the minors.
D. not enforceable by the parents or the guardians of the minors.
Question 9
A minor can be held liable if he or she makes damaging statements in writing for the act of:
A. libel.
B. slander.
C. conversion.
D. nuisance.
Question 10
Some state statutes and local ordinances that regulate the creation and performance of certain types of contracts on Sundays and legal holidays are referred to as __________ laws.
A. white
B. black
C. blue
D. red
Question 11
In certain states, typical office basketball and football pools are examples of:
A. legal restraints of trade.
B. usurious agreements.
C. common office sports.
D. illegal gambling.
Question 12
To protect the public, most states require persons engaged in certain businesses, professions, and occupations to be:
A. contractual.
B. monopolized.
C. licensed.
D. unlicensed.
Question 13
When a contracting party dies, contract rights are assigned to the:
A. parents of the deceased person.
B. heirs of the deceased person.
C. administrator or executor of the estate.
D. spouse of the deceased person.
Question 14
The laws dealing with bankruptcy provide that the assets and contracts of a bankrupt person or business be:
A. sold to the highest bidder.
B. assigned to the trustee in bankruptcy.
C. held by the court pursuant to a decree.
D. transferred to the largest creditor.
Question 15
A person who is not a party to a contact but is intended by the contracting parties to benefit as a consequence of a contract is termed a(n):
A. third party beneficiary.
B. incidental beneficiary.
C. official receiver.
D. arbitrator.
Question 16
If a tender of payment is refused by the creditor:
A. the debt is irrecoverable.
B. penalties can be charged beyond the date on which the offer of payment was made.
C. the debt is not canceled.
D. interest can be charged beyond the date the offer of payment was made.
Question 17
All of the following requirements must be met for a tender of money or performance to be valid EXCEPT:
A. the tender must be made as specified in the contract.
B. the mention of money in a contract implies payment by check.
C. when tender of payment is made, it must be for the exact amount.
D. if the contract calls for the delivery of specific goods, only the tender of these particular goods will satisfy the contract.
Question 18
If a contract calls for the delivery of specific goods, the contract will be satisfied with the tender of:
A. only those particular goods.
B. any substitute goods of the same value.
C. alternate goods of less value.
D. substitute goods of greater value.
Question 19
A deliberate change of an important element in a written contract that affects the rights or obligations of the parties is known as a(n):
A. mitigation.
B. breach of contract.
C. material alteration.
D. injunction.
Question 20
If a law is passed after the parties enter into a contract that makes performance illegal, the contract is:
A. terminated by operation of law.
B. void from the beginning.
C. terminated by alteration.
D. unenforceable.

4
Part 1 of 1 –
Question 1
The legal document formally creating an agency is called a:
A. general contract.
B. power of attorney.
C. special delegation.
D. collateral power.
Question 2
Which legal term is used for a person who is appointed as an agent?
A. Special Attorney
B. Attorney in Law
C. Attorney in Fact
D. Apparent Attorney
Question 3
A principal cannot accept the benefits of a transaction and refuse to accept the:
A. obligations.
B. parallel benefits.
C. apparent benefits.
D. representation.
Question 4
An agent is liable for losses to the principal resulting from the agent’s:
A. capital accumulation.
B. personal business.
C. incompetence.
D. explicit agreement.
Question 5
When an agent signs a contract in the principal’s name, he or she is acting on behalf of a(n) __________ principal.
A. disclosed
B. undisclosed
C. apparent
D. statutory
Question 6
A receipt for goods that are to be shipped is known as a:
A. warehouse receipt.
B. bill of lading.
C. bill of sale.
D. bill of purchase.
Question 7
A warehouse receipt is used for goods that are being:
A. imported.
B. stored.
C. exported.
D. sold immediately.
Question 8
Title to goods passes when the:
A. court approves the transaction.
B. majority party votes for it to pass.
C. parties intend for it to pass.
D. bill of sale is approved.
Question 9
Camilla agrees to purchase a car for $ 15,000. Camilla and the seller agree that Camilla will return the following day with license plates to pick up the vehicle. In this case, the title shall pass:
A. when Camilla arrives with the license plates.
B. when Camilla takes the vehicle home.
C. at the time of purchase.
D. at the time of agreement.
Question 10
A legally enforceable agreement that has as its purpose the immediate transfer of title to personal property in return for consideration and includes both a present sale of goods as well as an agreement for the sale of future goods is a:
A. contract for sale.
B. negotiated transaction.
C. contemplated transaction.
D. void transaction.
Question 11
Goods that physically exist and are owned by the seller at the time of sale are considered __________ goods.
A. accessible
B. existing
C. scarce
D. profitable
Question 12
A contract in which title and risk of loss remain with the seller and that provides for the sale subject to the buyer’s final decision is a(n):
A. endorsement of contract.
B. sale on approval.
C. contract to sell.
D. contract for sale.
Question 13
A reputed merchant will agree to a sale or return in order to maintain:
A. balance.
B. family.
C. goodwill.
D. tax returns.
Question 14
The Uniform Commercial Code provides specific rules that must be followed by a seller who wants to avoid the responsibility of __________ warranties.
A. full
B. limited
C. implied
D. expressed
Question 15
A disclaimer of the __________ of merchantability must mention the word merchantability.
A. warranty
B. guarantee
C. merchandise
D. lemon law
Question 16
A promise that a defective product will be repaired without charge within a reasonable time after a complaint has been made is a:
A. full warranty.
B. limited warranty.
C. wagering agreement.
D. conversion.
Question 17
The statutes that provide remedies to consumers for products such as automobiles that repeatedly fail to meet certain standards of quality and performance are known as __________ laws.
A. blue
B. lemon
C. elder
D. red
Question 18
In a sole proprietorship, the entrepreneur has to obtain a general __________ from his or her local municipality.
A. fiscal access
B. stock reserve
C. business license
D. corporate authority
Question 19
At times, individuals can become partners for only a short period of time, or for only a single project. This activity is defined as a:
A. joint venture.
B. severability.
C. sole liability.
D. union charge.
Question 20
A business that is formed as a separate legal entity is a(n):
A. fiduciary.
B. corporation.
C. proxy.
D. entrustment.
5
Part 1 of 1 –
Question 1
A possession interest in which the lease continues for successive periods for the same length of time—weekly, monthly, or annually—and is automatically renewed at the end of the period is a:
A. periodic tenancy.
B. tenancy for years.
C. tenancy at will.
D. tenancy at sufferance.
Question 2
A landlord’s promise that the premises have no defects that would impair the health, safety, or wellbeing of the occupants is an implied warranty of:
A. merchantability.
B. habitability.
C. safety.
D. title.
Question 3
The landlord has the right to collect the agreed-upon rent as provided in the:
A. sale deed.
B. quitclaim deed.
C. hire purchase deed.
D. lease agreement.
Question 4
When tenants transfer their entire interest in property for the remaining term of a lease it is a(n):
A. leasehold.
B. sublease.
C. eviction.
D. assignment.
Question 5
An agreement in which a suitcase is left with a railroad station checkroom is a:
A. bailment for the sole benefit of the bailee.
B. bailment for the sole benefit of the bailor.
C. mutual-benefit bailment.
D. constructive bailment.
Question 6
A guest whose stay is relatively uncertain is known as a:
A. traveler.
B. customer.
C. transient.
D. temporary.
Question 7
An individual or firm in the business of transporting goods between certain points as allowed by the various state commissions that regulate the carriers is known as a __________ carrier.
A. business
B. government
C. public
D. common
Question 8
The law requires that a common carrier must accept all shipments that it is authorized to:
A. purchase.
B. handle.
C. hypothecate.
D. pledge.
Question 9
__________ is the right of an owner of property such as plants or animals to increase in the property. The owner of a cow, for example, owns the calves born to the cow.
A. Statutory right
B. Accession
C. Legal right
D. Anticipation
Question 10
Ownership is held in __________ when all the rights of ownership in a particular piece of property are held by one person.
A. severalty
B. solitary
C. defiance
D. accession
Question 11
When two or more persons own equal shares of a property then it is called:
A. severalty.
B. co-ownership.
C. joint tenancy.
D. multiparty.
Question 12
The owner of a freehold estate who holds the estate absolutely is said to hold it in:
A. accession.
B. easements.
C. life estates.
D. fee simple.
Question 13
In a property, a person who holds a freehold estate only for his or her lifetime is said to hold a(n) __________ in the property.
A. accession
B. precession
C. life estate
D. benefit
Question 14
A living trust is also known as a(n) __________ trust.
A. testamentary
B. contemporary
C. inter vivos
D. constructive
Question 15
The responsibility of the trustee is that of a(n):
A. fiduciary.
B. probationary.
C. stationary.
D. exemplary.
Question 16
A person who makes a will is known as a(n):
A. testator.
B. administrator.
C. executor.
D. trustee.
Question 17
If the personal representative has been named in the will, he or she is known as the:
A. executor.
B. administrator.
C. testator.
D. legacy.
Question 18
A formal printed will must be signed by the testator and:
A. executed.
B. scripted.
C. witnessed.
D. supplemented.
Question 19
An agreement reached between a bailor and a bailee is a:
A. mortgage.
B. bailout.
C. bailment.
D. codicil.
Question 20
Legally, property other than land, including both tangible property and intangible property, is considered __________ property.
A. real
B. personal
C. intangible
D. transient
6
Part 1 of 1 –
Question 1
A person who gains unauthorized access to computers, either for mischief or with criminal intent, is called a(n):
A. imposter.
B. fraud.
C. genius.
D. hacker.
Question 2
Instructions hidden in software with the potential to cause significant damage to both hardware and software is a:
A. virus.
B. piracy.
C. corruption.
D. façade.
Question 3
The Electronic Communications Privacy Act (ECPA) states that individuals may not gain access without permission to a(n):
A. fund transfer system.
B. cyberspace privacy system.
C. electronic communication system.
D. antiviral organization.
Question 4
The rapid advances in technology being experienced today make it difficult for people to maintain online anonymity or distance between themselves and powerful:
A. sales.
B. interests.
C. forces.
D. departments.
Question 5
Online marketers of products and services have quickly recognized that learning about consumers’ online behavior presents a real opportunity to increase their:
A. sales.
B. interests.
C. forces.
D. departments.
Question 6
Trademark registrations are issued at the federal level by the U.S. Patent and Trademark Office of the Department of:
A. Commerce.
B. Labor.
C. Justice.
D. States.
Question 7
A trademark registration is issued for a renewable period of __________ years.
A. 10
B. 20
C. 50
D. 60
Question 8
A distinctive, nonfunctional feature, which distinguishes a merchant’s or manufacturer’s goods or services from those of another, is known as a:
A. trademark.
B. trade dress.
C. design patent.
D. copyright.
Question 9
Anyone who manufactures or sells, without permission, a product that has been patented by another can be charged with:
A. fraud.
B. infringement.
C. misrepresentation.
D. breach of contract.
Question 10
The Patent and Trademark Office would probably grant a patent if the invention is a device, useful, novel, and:
A. unauthorized.
B. obsolete.
C. nonobvious.
D. general.
Question 11
Design patents are granted for a period __________ years.
A. less than 20
B. from 20 to 30
C. from 30 to 40
D. from 40 to 50
Question 12
A place where a corporation or an issuer sells its securities to the public is known as a __________ market.
A. commodity
B. primary
C. secondary
D. labor
Question 13
Issuers of securities must register the securities with the:
A. U.S. Copyright Commission.
B. U.S. Patent and Trademark Office.
C. Securities and Exchange Commission.
D. Federal Trade Commission.
Question 14
A document that provides relevant and important information about the company, its businesses, and its prospects is known as:
A. memorandum of association.
B. articles of association.
C. letters of incorporation.
D. prospectus.
Question 15
In 1992, the SEC created a computerized system, known as the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system that allows companies to:
A. download required information directly.
B. sell its shares to the public online.
C. make advertisements on the web.
D. register with the Federal Trade Commission.
Question 16
A computer program is defined as a “set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain act” under the:
A. Global Computer Review Act04.
B. Computer Software Copyright Act of 1980.
C. National Software Act of 1863.
D. USA Computer Act01.
Question 17
A(n) __________ test is used to determine whether an ordinary reasonable observer comparing two works would have to conclude that the work being questioned was copied from the other.
A. substantial similarity
B. fair use
C. goodwill
D. infringement
Question 18
A form of personal property, which includes knowledge, ways of doing things, and expressions of ideas is known as a(n):
A. intellectual property.
B. tangible property.
C. real property.
D. easementary right.
Question 19
Consumers who believe that their right to privacy is being violated by the embedding of software can complain to the:
A. Federal Tort Curbing Agency.
B. Administration and Trade Commission.
C. Agency against Unfair Trade Practices.
D. Federal Trade Commission.
Question 20
The ECPA also grants an Internet service provider (ISP) the right to __________ e-mail messages without the subscriber’s consent.
A. monitor
B. screen
C. block
D. redirect

7
Part 1 of 1 –
Question 1
In 1947, an international agreement was entered into by a multitude of nations, called the:
A. North American Free Trade Agreement.
B. World Trade Organization.
C. General Agreement on Tariffs and Trade.
D. International Monetary Fund Agreement.
Question 2
The commission or organization that is responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future is known as the:
A. North American Free Trade Organization.
B. World Trade Organization.
C. General Agreement on Tariffs and Trade.
D. International Monetary Fund.
Question 3
An act of the host country’s taking title to all of the assets of the foreign company is called:
A. capitalization.
B. embargo.
C. domestication.
D. expropriation.
Question 4
The employer must protect the employee by providing all of the following, EXCEPT:
A. a safe and sanitary place to work.
B. proper tools and machinery for the job to be performed.
C. an environment free of competition.
D. careful and competent employees with whom to work.
Question 5
It is the employee’s duty to:
A. obey his or her employer’s lawful orders concerning the employment.
B. be careful and less competent than his or her colleagues.
C. create an environment free of competition.
D. provide a safe and sanitary place to work.
Question 6
Disclosing personal, irrelevant information about a former employee amounts to:
A. defamation.
B. invasion of privacy.
C. illegal restraint of trade.
D. violation of restrictive covenant.
Question 7
The doctrine of employment at will has been eroded by federal, state, and local statutes; by court decisions; and by:
A. social attitude.
B. moral behavior.
C. company agenda.
D. public policy.
Question 8
__________ regulates the dumping of waste onto land.
A. Clean Water Act
B. Superfund
C. Environmental Protection Agency
D. Clear Air Act
Question 9
A remedy in which an employee who sustains a work-related injury or illness can only recover damages through workers’ compensation and may not file a lawsuit against his or her employer is known as a(n) __________ remedy.
A. exceptional
B. preventive
C. exclusive
D. unavoidable
Question 10
Employees may still sue their employers if it was the employer’s __________ conduct that caused the injury or illness.
A. intentional
B. malicious
C. abrupt
D. grossly negligent
Question 11
The Civil Rights Act of 1991 is a federal statute that provides two important additional remedies to an employee who can prove that he or she was a victim of:
A. discrimination.
B. disability.
C. terror attack.
D. harassment.
Question 12
Favoritism is a form of:
A. sexual harassment.
B. racial harassment.
C. religious harassment.
D. age discrimination.
Question 13
In a product liability case, the most obvious target of an injured party is the:
A. manufacturer.
B. licensor.
C. purchaser.
D. dealer.
Question 14
The ones who are particularly vulnerable when the product manufacturer is insolvent or is a corporation that has been dissolved or is unreachable are the:
A. designers.
B. managers.
C. purchasers.
D. retailers.
Question 15
A pharmaceutical company earns most of its profits from the drug only at the time during which the drug is effective and it is:
A. patented.
B. registered as a trade mark.
C. licensed as a copyright.
D. reasonably priced.
Question 16
Consumer products with restrictions imposed on them include the following, EXCEPT:
A. services.
B. paint.
C. children’s toys.
D. radiation-emitting products.
Question 17
In a Master Settlement Agreement, the companies agree not to engage in __________ strategies.
A. advertising
B. consumer product safety
C. federal administrative
D. producing
Question 18
One who learns from a patient that he or she intends to do harm to another and has the legal responsibility to inform the possible victim and the appropriate authorities is known as a:
A. physician.
B. psychiatrist.
C. nurse.
D. discologist.
Question 19
A person who dispenses drugs other than those specifically prescribed by authorized professionals such as physicians also can be charged with malpractice if the incorrectly dispensed drugs cause injury to the legal user. Such a person is known as a:
A. pharmacist.
B. physician.
C. psychiatrist.
D. nurse.
Question 20
It has been held that when, as a result of his or her negligence, the accountant fails to discover or conceals evidence that a client’s employee has been embezzling funds, an accountant is liable only to his or her:
A. agent.
B. company.
C. client.
D. partner.
8
Question 1
Today’s business professionals involved in global markets are sometimes faced with ethical predicaments, because of different:
A. modes of transport.
B. languages.
C. standards of ethics.
D. values of money.
Question 2
The executive branch of government sees that all legislation is:
A. approved.
B. enacted.
C. enforced.
D. dismissed.
Question 3
The law assumes that, as long as no undue pressure is brought to bear, the parties were:
A. free to reject a proposed unfair contract.
B. not allowed to enter into another contract.
C. bound compulsorily by all the terms of a contracts.
D. free to perform an illegal act.
Question 4
If minors are capable of properly carrying out the duties of an agency relationship then they:
A. may be considered to represent other persons as agents.
B. may still not be eligible to enter into a contract with an agent.
C. may still not be considered to represent other persons as agents.
D. are exempted from representing other persons as agents.
Question 5
The intangible right of ownership is called:
A. custody.
B. tenure.
C. title.
D. possession.
Question 6
The Magnuson-Moss Warranty Act relating to warranties addresses many different kinds of abuses to:
A. sellers.
B. agents.
C. manufacturers.
D. consumers.
Question 7
The death or disability of one of the partners in a business causes:
A. affirmation.
B. discharge.
C. investiture.
D. dissolution.
Question 8
The law concerning bailments provides for certain rights and duties of both bailor and bailee, depending on the:
A. amount of the transactions.
B. nature of the business.
C. kind of bailment.
D. competency in the market.
Question 9
The one that provides the holder with certain rights during the period covered by the lease is called a(n):
A. leasehold estate.
B. accession estate.
C. conversion estate.
D. administrator’s estates.
Question 10
Unauthorized access to computers invites violation of:
A. objectives.
B. duties.
C. rights.
D. goals.
Question 11
An agreement in which the seller agrees not to begin or operate a similar business within a certain geographic area, or within a specified period of time, is known as a(n):
A. service-level agreement.
B. agreement not to compete.
C. arbitration agreement.
D. nondisclosure agreement.
Question 12
The U.S. Supreme Court hears appeals from the:
A. government departments.
B. highest state courts.
C. federal corporations.
D. federal arbitral tribunals.
Question 13
The obligation to perform acts already required is known as a:
A. pious obligation.
B. preexisting duty.
C. social obligation.
D. contractual duty.
Question 14
If the person accused of __________ had a special privilege, such as an attorney in a court proceeding who accuses a witness of lying, then the complainant person cannot recover damages.
A. defamation
B. false imprisonment
C. vis major
D. negligence
Question 15
To attain economic results, such as protecting domestic industries or facilitating the production of certain crops, at times a country will impose a(n):
A. embargo.
B. tariff.
C. capital punishment.
D. bylaw.
Question 16
The employer owes several duties to his or her employee. These duties are mostly __________ in nature.
A. legal
B. social
C. political
D. ethical
Question 17
The “Americans with Disabilities Act” defines disability as a(n) __________ that substantially limits one or more of the major activities of life.
A. impairment
B. accident
C. tragedy
D. incompetence
Question 18
All of the following are the elements that a plaintiff must prove in order to be successful in establishing the defendant’s negligence in a product liability lawsuit EXCEPT:
A. warranty.
B. breach.
C. duty.
D. damages.
Question 19
A contract that gives the buyer title to goods and the opportunity to return them to the seller at a later time is a:
A. contract for sale with the right of return.
B. sale on approval of the buyer.
C. contract to sell.
D. trial contract.
Question 20
In a product liability lawsuit, __________ is/are often difficult to prove because the plaintiff usually needs the opinions of expert witnesses who can evaluate whether the defendant negligently manufactured or sold the product.
A. damages
B. duty
C. breach
D. proximate cause

Multiple Choice Answers

Question 1
The first step of the financial planning process is to:
A. develop financial goals.
B. implement the financial plan.
C. analyze your current personal and financial situation.
D. evaluate and revise your actions.

Question 2
The uncertainty associated with decision making is referred to as:
A. opportunity cost.
B. selection of alternatives.
C. financial goals.
D. risk.

Question 3
The financial planning process concludes with efforts to:
A. review and revise your actions.
B. create a financial plan of action.
C. analyze your current personal and financial situation.
D. review the financial plan.

Question 4
Lynn Roy wants to travel around the world. Lynn Roy has several options she can pursue. She can continue to work full time to earn the money she needs for her trip. She can work part time so that she can still earn some money but have the time necessary to complete her trip. She can take full retirement so that she has all the time necessary to complete her trip. Which step in the financial planning process does this scenario demonstrate?
A. Determining her current financial situation
B. Developing her financial goals
C. Identifying alternative courses of action
D. Evaluating her alternatives

Question 5
Higher consumer prices are likely to be accompanied by:
A. lower union wages.
B. lower interest rates.
C. lower production costs.
D. higher interest rates.

Question
Which of the following would cause prices to drop?
A. Increased production by business
B. Increased taxes on business
C. Higher levels of demand by consumers
D. A reduction in the money supply

Question
The time value of money refers to:
A. personal opportunity costs such as time lost on an activity.
B. financial decisions that require borrowing funds from a financial institution.
C. changes in interest rates due to changes in the supply and demand for money in our economy.
D. increases in an amount of money as a result of interest.

Question
The amount of interest is determined by multiplying the amount in savings by the:
A. annual interest rate.
B. annual interest rate and the time period.
C. time period.
D. time period and number of months.

Question 9
If a person deposited $50 a month for 6 years earning 8%, this would involve what type of computation?
A. Present value of a series of deposits
B. Future value of a single amount
C. Future value of a series of deposits
D. Present value of a single amount

Question 10
Which type of computation would a person use to determine current value of a desired amount for the future?
A. Present value of a series of deposits
B. Future value of a single amount
C. Future value of a series of deposits
D. Present value of a single amount

Question 11
Future value calculations are also referred to as:
A. discounting.
B. add-on interest.
C. compounding.
D. simple interest.

Question 12
Which is a question associated with the saving component of financial planning?
A. Do you have an adequate emergency fund?
B. Is your investment program appropriate to your income and tax situation?
C. Do you have a realistic budget for your current financial situation?
D. Are your transportation expenses minimized through careful planning?

Question 13
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n):
A. insurance prospectus.
B. financial plan.
C. budget.
D. investment forecast.

Question 14
One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs. Which aspect of financial planning does this deal with?
A. Retirement and Estate Planning
B. Spending
C. Managing Risk
D. Investing

Question15).
The first step of the career planning process is to:
A. evaluate the job market.
B. assess your interests, abilities, and goals.
C. identify potential job opportunities.
D. develop a résumé and cover letter.
The first step of the career planning process is to:
A. evaluate the job market.
B. assess your interests, abilities, and goals.
C. identify potential job opportunities.
D. develop a résumé and cover letter.

Question 16 of 20
Josh Turner has done some research and has found that the population in the U.S. is aging, and this means that there will be an increased need for health care professionals in the future. This is an example of __________ influencing jobs in the future.
A. demographic trends
B. economic conditions
C. industry trends
D. geographic trends

Question 17 of 20
Blake Williams has done some research and has discovered that economists believe interest rates will rise significantly over the next two years. Blake believes that this will lead to fewer homes being sold and fewer jobs in the banking and mortgage industries. What type of influence is this an example of?
A. Demographic trends
B. Economic conditions
C. Industry trends
D. Geographic trends

Question 18 of 20
To assess the current value of a lump-sum retirement benefit that will be received in 10 years, use the __________ calculation.
A. present value of annuity
B. present value of a single amount
C. future value of an annuity
D. future value of a single amount

Question 19 of 20
Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:
A. $694.
B. $528.
C. $500.
D. $360.

Question 20 of 20
__________ is a benefit on which you pay no taxes.
A. Networking
B. Vesting
C. A tax deferred benefit
D. A tax exempt benefit

Multiple Choice Answers

Among the Big Five, which dimension had the strongest positive correlation with job performance and training performance? A. Conscientiousness B. Emotional stability C. Openness to experience D. Agreeableness

People with __________ see themselves as masters of their own fate. A. an external locus of control B. an openness to experience C. an internal locus of control D. emotional stability

__________ is a learned predisposition toward a given object. A. Personality B. Perception C. Self-concept D. Attitude

__________ are goal-incongruent. A. Positive emotions B. Attitudes C. Mental abilities D. Negative emotions