A clients negligence is never a defense to a charge of negligence against an accountant.
a. True
b. False
Erin is a shareholder in African Adventures. As a shareholder, Erin
a. owns shares of stock in African Adventures.
b. is the founder of African Adventures.
c. has no say in the election of African Adventures board of directors.
d. is liable for all the debts of African Adventures.
Employers are not allowed to interfere with employees efforts to form or join a union
under
a. the employment-at-will doctrine.
b. the National Labor Relations Act.
c. the Civil Rights Act.
d. the Fair Labor Standards Act.
Reno is the beneficiary of a life insurance policy on Sulas life obtained from Traditional
Insurance Company. The underwriter of this policy is
a. Reno.
b. Sula.
c. Traditional.
d. the agent or broker through whom the policy was obtained.
A license is the revocable right of a person to come onto another persons land.
a. True
b. False
Ric designs a new tablet computer that he names “Sci Phi. He also writes the operating
manual to be included with each final product. Ric can obtain patent protection for
a. the tablet computer.
b. the “newness of the tablet computer.
c. the name.
d. the operating manual.
In a consolidation, the consolidating corporations become subsidiaries of the new
corporation.
a. True
b. False
Geoff serves in a representative capacity for Huck. To accomplish the objectives of this
relationship, Geoffs authority can be implied
a. by contradiction
b. by custom.
c. by lack of reason.
d. under no circumstances.
Creditors can agree with a debtor to discharge the debtors debts on payment of a sum
less than that owed.
a. True
b. False
A financing statement cannot be the same as the security agreement.
a. True
b. False
Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would
“hate to see anything bad happen to Tia or her house. Tia agrees to sell. Regarding this
agreement, a court would likely
a. enforce it.
b. not enforce it.
c. reform it to reflect the true market value of the property.
d. order the parties to renegotiate the price.
Individuals who are arrested must be informed of certain constitutional rights.
a. True
b. False
Peak & Vale Accountants provides other firms with accounting services.Questions of
what is ethical involve the extent to which Peak & Vale has
a. a legal duty beyond those duties mandated by ethics.
b. an ethical duty beyond those duties mandated by law.
c. any duty beyond those mandated by both ethics and the law.
d. any duty when it is uncertain whether a legal duty exists.
Partnership profits must be shared in the same proportion as the partners investment of
capital in the firm.
a. True
b. False
Truman applies for a job at Skylight Canopy Corporation for which he is well
quali-fied, but for which he is rejected. Skylight continues to seek applicants and
eventually fills the posi-tion with a person who is not a member of a mi-nority. Truman
is most likely to succeed in a suit against Skylight for discrimination if he is a member
of
a. a protected class.
b. a majority group.
c. an employers association.
d. a union.
An employer may have a right to terminate a person based on his or her violation of the
employers social media policy.
a. True
b. False
The UCC imposes some different rules on merchants.
a. True
b. False
Eli, a minor, buys an automobile insurance policy from Faithful Insurance Company
and pays a $1,000 pre-mi-um. If Eli can disaffirm the contract, he can most likely
recover
a. $500.
b. $1,000.
c. $1,500.
d. nothing.
An employer has no control over an employees work.
a. True
b. False
Whistleblower statutes protect employers who report their employees wrongdoing.
a. True
b. False
There are no exceptions to the rule that any duty can be delegated.
a. True
b. False
An oral contract may be enforceable if the person making the promise could foresee
that the promisee would rely on the promise.
a. True
b. False
In most contracts, promises of performance are not expressly conditioned.
a. True
b. False
A professionals gross negligence in performing a duty constitutes actual fraud.
a. True
b. False
The minimum number of members of a body of officials that must be present before
business can validly be transacted is known as a quorum.
a. True
b. False
Against a charge of a violation of the Securities Act of 1933, only an issuer of stock can
assert the due diligence defense.
a. True
b. False
Plant life is not considered to be real property.
a. True
b. False
Employees posts on social media may be protected under labor laws.
a. True
b. False
A buyer may reject a sellers goods under any circumstances.
a. True
b. False
Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be
enforceable, the contract must include
a. no particular signatures.
b. the signatures of all parties to the deal.
c. the signature of the party against whom enforcement is sought.
d. the signature of the party who is seeking enforcement.
Precise Device Corporation and Quality Instruments, Inc., decide to merge. This
corporate combination does not require the approval of
a. Precise and Qualitysdirectors.
b. Precise and Qualitys officers and employees.
c. Precises shareholders.
d. Qualitys shareholders.
First Design Corporation, a business firm, and Glen, a consumer, make a deal over the
Internet that involves e-signatures. Under the E-SIGN Act, the e-signatures
a. are as valid as signatures on a paper document.
b. must be encrypted to be enforceable.
c. must have been inscribed on a digital tablet to be authenticated.
d. must relate to a partnering agreement.