An organization or venture must have a ________ motive in order to qualify as a
partnership.
A) large-scale expansion
B) non-commercial
C) profit
D) target market
Individuals and businesses use the Internet for communication of information and data.
Which of the following best describes air rights?
A) develop natural and cultivated plant life on the land
B) legally block the airspace above the land from commercial use
C) lease or sell the space above the property for commercial purposes
D) create fixtures inside the real property that become a part of the sale agreement
A director or corporate officer who usurps a corporate opportunity would be in violation
of ________.
A) the voting trust arrangement
B) the duty of loyalty
C) piercing of the corporate veil
D) self-dealing
The bank where the payee or holder of a check has an account is known as the
________.
A) payer bank
B) depository bank
C) intermediary bank
D) private bank
Whistle Cabs, a taxi service company, has been ordered by the traffic department to
update their taximeters to digital ones. Whistle Cabs decides to contract with Running
Electricals, who provides digital taximeters. But to acquire it on such short notice,
Whistle Cabs approaches Goldmint Bank. Goldmint Bank purchases the taximeters, and
the taximeters are delivered to Whistle Cabs. The contract between Whistle Cabs and
Goldmint Bank allows the taxi service company to use the taximeters for a period of
time by providing monthly rentals till that period is completed. What is the nature of the
contract made between Goldmint, Whistle Cab, and Running Electricals?
A) counteroffer
B) finance lease
C) sale of goods
D) option contract
Which of the following statements is true of workers’ compensation?
A) A worker must file a complaint with the police before claiming workers’
compensation.
B) Workers’ compensation is a provisional remedy, not an equitable remedy.
C) A worker who receives workers’ compensation cannot sue his employer for the
injury.
D) Workers’ compensation is generally awarded as punitive damages of a lawsuit
initiated by the injured employee.
The ________ exemption 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.
A) computer employee
B) outside sales representative
C) highly compensated employee
D) administrative employee
The Shari’a or Islamic law is the only law in Saudi Arabia.
A detailed set of rules adopted by the board of directors after a corporation is
incorporated that contains provisions for managing the business and the affairs of the
corporation are referred to as ________.
A) ultra vires rules
B) articles of incorporation
C) bylaws
D) corporation codes
Bonds are examples of ________.
A) common securities
B) implicit securities
C) statutorily defined securities
D) investment contracts
________ is a doctrine that says a person is liable for harm that is the foreseeable
consequence of his or her actions.
A) Misrepresentation
B) Negligence
C) Disparagement
D) Fraud
The government’s power to take private property for public use provided that just
compensation is paid to the private property holder is known as ________.
A) future interest
B) constructive eviction
C) adverse possession
D) eminent domain
________ are a series of laws enacted to specifically limit anticompetitive behavior and
monopolistic practices in almost all industries, businesses, and professions operating in
the United States.
A) Contract laws
B) Antitrust laws
C) Laissez-faire laws
D) Canon laws
A(n) ________ is an original creditor who becomes a beneficiary under the debtor’s
new contract with another party.
A) donee beneficiary
B) creditor beneficiary
C) incidental creditor
D) subsequent assignee
Which of the following is a compulsory subject during collective bargaining?
A) health benefits
B) discrimination
C) corporate reorganization
D) location of workplace
Which of the following is classified under “common securities”?
A) real estate
B) bullion
C) debenture
D) bank deposit
Which of the following is true of licenses?
A) A license grants the licensee complete control over the intellectual property.
B) A license to use intellectual property would come under the purview of the UCITA.
C) A licensee has complete control over the information he or she is allowed to access.
D) A licensee has the right to use information rights beyond the licensor’s control.
A merger between two regional fruit-sellers that do not sell fruit in the same
geographical area is an example of a ________.
A) market extension merger
B) conglomerate merger
C) horizontal merger
D) vertical merger
A corporation in the state in which it was formed is referred to as a(n) ________
corporation.
A) foreign
B) domestic
C) alien
D) overseas
The federal government of the United States can enter into a treaty with the country of
Uganda that agrees to reduce trade barriers between them. However, the state of
Arizona cannot enter into a treaty with the country of Uganda that reduces trade barriers
between Arizona and Uganda. Give reasons to explain the scenario.
Which of the following is true of Chapter 11 of the Bankruptcy Code?
A) Chapter 11 is a rehabilitation form of bankruptcy that permits bankruptcy courts to
supervise the debtor’s plan for the payment of unpaid debts.
B) Chapter 11 petition filing immediately enables creditors to recover the debtor’s
property.
C) Chapter 11 helps the debtor reorganize with a new capital structure so that the debtor
emerges from bankruptcy as a viable concern.
D) Chapter 11 does not permit a debtor to reject executory contracts or unexpired
leases.
Which of the following statements is true of the Private Securities Litigation Reform
Act of 1995?
A) It made it easier for plaintiffs to bring class action securities lawsuits.
B) It replaces proportionate liability with joint and several liability.
C) It results in the accountant being the “deep pocket” defendant regardless of the
accountant’s degree of fault.
D) It allows joint and several liability to be imposed if the defendants acted knowingly.
The United States Congress created the 13th court of appeals called the Court of
Appeals for ________.
A) the District of Columbia
B) internal affairs
C) the Federal Circuit
D) Death Penalty Due Process
Which of the following is true of Chapter 13 discharge?
A) It is granted before a Chapter 13 plan of payment is enforced.
B) It is not granted if the debtor has received Chapter 7 discharge in the last four years.
C) It is granted after the completion of payment plan duration, irrespective of the debts
covered.
D) It relieves the debtor of all unpaid taxes.
Which of the following is codified under the Foreign Sovereign Immunities Act?
A) the act of state doctrine
B) the principle of restricted immunity
C) the supremacy clause
D) the choice of forum clause
Mr. Rolleck places his estate in a trust while he is alive, and he names a local bank as
the trustee to administer the trust and invest its assets. The trust designates his wife as
the income beneficiary of his estate and stipulates that after his wife’s death, their
children James and Joyce will receive the trust. James and Joyce are ________ in this
scenario.
A) collateral heirs
B) income beneficiaries
C) remainder beneficiaries
D) settlors
The income or loss from the sole proprietorship is reported on ________ which must be
attached to the taxpayer’s Form 1040.
A) Schedule B
B) Schedule C
C) Form 14
D) Form 8
A violation of a person’s privilege to live his or her life without being subjected to
undesired publicity constitutes the tort of ________.
A) invasion of the right to privacy
B) product disparagement
C) slander of title
D) trade libel
________ represent rights that cannot be reduced to physical form, such as stock
certificates, certificates of deposit, bonds, and copyrights.
A) Real properties
B) Intangible properties
C) Fixtures
D) Immovable properties
Which of the following does a Chapter 11 automatic stay provide?
A) automatic discharge of secured debts
B) suspension of certain legal actions against the debtor
C) creditors’ foreclosure on assets given as collateral for loans
D) automatic discharge of unsecured debts
Which of the following is true of a franchise?
A) The franchisor and franchisee are established as separate legal entities.
B) A franchisee does not need a license to use the franchisor’s trademark.
C) The franchisee does not have access to the franchisor’s knowledge.
D) A franchise is considered as a joint venture.
Which of the following refers to the resulting assets from the exchange or disposal of
collateral subject to a security agreement?
A) sale proceeds
B) future advances
C) floating lien
D) after-acquired property
Which of the following statements is true of insurance policy?
A) It is not possible to cancel an insurance policy until the date of maturity.
B) It can be obtained even if one has no insurable interest in that property.
C) It remains in effect even during the overdue grace period.
D) It cannot be modified once issued.