The equity of a partnership is called partnership capital.
Competitors making an agreement to split up a geographical area and not to directly
compete against each other is per se illegal.
A member’s most important right within an LLC is to receive distributions.
The Robinson-Patman act outlawed secondary and tertiary price discrimination.
Authority is an agent’s ability to handle the legal issue of a principal.
Administration action is subject to basic constitutional tests.
Parties that are successful in an antitrust suit are entitled to recover treble damages.
Rules of the New York Stock Exchange (NYSE) and the NASDAQ, which apply to
firms listed on the NYSE or NASDAQ, require that audit committees comprise only of
_____.
A.inside directors
B.independent directors
C.outside directors
D.top level officers
The Administrative Procedure Act (APA) was passed by Congress to standardize
federal agency procedure.
The two most common classes of shareholders are:
A.Government and common
B.Common and preferred
C.Preferred and government
D.Watered down and common
What was the name of the documents that were given to early American corporations
by state legislatures that permitted them to operate as a corporation?
A.Certificate of Corporation
B.Organization Agreement
C.Special Charter
D.Domestic Treaty
Which of the following antitrust activities can be challenged only under the state law?
A.Interstate agreements in restraint of trade.
B.Intrastate agreements in restraint of trade.
C.Interstate deceptive and unfair practices.
D.Intrastate deceptive and unfair practices.
The federal antitrust laws apply only to antitrust behavior (monopolization, attempted
monopolization, and agreements in restraint of trade) having some significant impact on
interstate or foreign commerce. Activities that are purely intrastate in their effects are
outside the scope of federal antitrust jurisdiction and must be challenged under state
law.
What is the term for an agreement that makes the shareholder sell his shares back to the
corporation at a price determined in the agreement and binds the corporation to
purchase the shares?
A.Option agreement
B.Buy and sell agreement
C.Fiduciary agreement
D.International agent agreement
Under two of the subsections of Section 17(a) of the Securities Act of 1933, an investor
need prove only negligence by the accountant.
According to Sarbanes-Oxley Act, how long must audit and review working papers be
retained?
A.2 years
B.7 years
C.10 years
D.20 years
Agencies that invoke a power to search and seize evidence as part of an effort to prove
a regulatory violation are subject to what constitutional prohibitions?
A.First Amendment Freedom of Press
B.Fourth Amendment Protection against Unreasonable Searches
C.Tenth Amendment State Powers
D.Second Amendment Right to Bear Arms
The Equal Credit Opportunity Act (ECOA) requires creditors to notify applicants in
how many days of a decision on credit request?
A.90
B.180
C.30
D.15
The sale of a partner’s transferable interest in a business entitles the buyer to what
rights?
A.Distributions, like profit, that the selling partner was entitled to.
B.The right to inspect the partnership’s accounting books.
C.The right to manage the partnership.
D.The right to represent the partnership in a legal proceeding.
How many partners must agree to modify a partnership agreement?
A.All partners must unanimously agree.
B.A majority must agree to the change.
C.More than one but not necessarily a majority.
D.Only one partner is needed to modify an agreement.
What Constitutional Amendment protects employees from drug and alcohol testing at a
private employer?
A.Fourth Amendment – Search and seizure rule
B.Fifth Amendment – Right to a speedy trial
C.Fourteenth Amendment – Equal protection rule
D.There is no constitutional protection since it is a private employer