TEST FOUR 

BUS 220 Test 4 20081028

 

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

 

____          1.   The people who start the corporation

a.

promoters

b.

incorporators

c.

members

d.

shareholders

 

 

____          2.   These represent long-term debt of a corporation which is unsecured.

a.

equity security

b.

bonds

c.

debentures

d.

debt securities

 

 

____          3.   Share authorized to be issued by the articles of incorporation are:

a.

authorized shares

b.

issued shares

c.

outstanding shares

d.

treasury shares

 

 

____          4.   A court could be expected to "pierce the corporate veil" if:

a.

it was used to effect fraud

b.

it was used to effect the maximum amount of retained earnings allowed by law

c.

there was only one stockholder

d.

there is only one director

 

 

____          5.   In this type of franchise, the franchise is the typical chain-style business for which the franchisor merely provides the trademark.

a.

a distributor franchise

b.

a business format franchise

c.

a manufacturing or processing plant franchise

d.

a chemical processing plant franchise

 

 

____          6.   With this type of licensing, the foreign licensee has access to and use of a patent, and the U. S. licensor receives the royalties.

a.

validated license

b.

general license

c.

know-how licensing

d.

none of the above

 

 

____          7.   Securities are created by the party initially disseminating them:

a.

the incorporator

b.

the promoter

c.

the stockholder

d.

the issuer

 

 

____          8.   This regulation allows a seller sell to up to $1.5 million worth of shares in a one year period under a simplified registration process:

a.

Regulation A

b.

Regulation C

c.

Regulation D

d.

Regulation F

 

 

____          9.   A red herring prospectus is:

a.

final and approved by the SEC

b.

final and not approved by the SEC

c.

not final and not approved by the SEC

d.

none of the above

 

 

____          10. Which class of securities is exempt from the federal securities laws?

a.

issues by governmental bodies

b.

issues by corporations with assets under $1 million

c.

issues by corporations with over $250,000 in retained earnings

d.

all of the above

 

 

____          11. These securities are acquired in unregistered private sales form an issuer; if the holder holds them for more than one year, the securities can be sold if certain conditions are met.

a.

restricted securities

b.

registered securities

c.

accredited securities

d.

unaccredited securities

 

 

____          12. This system performs automated collection, validation, indexing, acceptance and forwarding of submissions by companies who are required by law to file forms with the SEC.

a.

EDI

b.

EDGAR

c.

EDDI

d.

EJP

 

 

____          13. The concept that the U. S. buyers of overseas securities should beware is also known as:

a.

per se

b.

respondeat superior

c.

carpe diem

d.

caveat emptor

 

 

____          14. This law allows the SEC to cooperate with other countries to regulate security markets and transactions.

a.

the International Organization of Securities Commission

b.

the Securities Exchange Act of 1934

c.

the Securities Act of 1933

d.

the International Securities Enforcement Cooperation Act

 

 

____          15. The promotion of high standards in regulating international securities markets to maintain just, efficient and sound markets is the responsibility of:

a.

the International Organization of Securities Commission

b.

the Securities Exchange Act of 1934

c.

the Securities Act of 1933

d.

the International Securities Enforcement Cooperation Act

 

 

____          16. Laws that regulate economic competition are referred to as:

a.

blue sky laws

b.

RICO laws

c.

FTC laws

d.

antitrust laws

 

 

____          17. This person holds title to the property in trust and manages the property for the benefit of one or more persons or businesses.

a.

trustee

b.

warder

c.

trustor

d.

incorporator

 

 

____          18. Sari, Chrissie and Nat are operators of paint producing plants in a metropolitan area.  They meet informally to compare prices and production and agree to divide the market into three equal shares.  This market division is:

a.

an allowable activity

b.

an illegal restraint of trade

c.

a legal restraint of trade

d.

price fixing

 

 

____          19. Sari, Inc. was charged with monopolizing the soap business in violation of Section 2 of the Sherman Act.  To determine the relevant product market for Sari's soap, the court will:

a.

look at the states in which Sari sells soap

b.

define the products that can be substituted for Sari's soap

c.

review Sari's commissions policies

d.

all of the above

 

 

____          20. Chrissie, Inc. makes video cameras.  In order to get an edge on its competitors on the east coast, Chrissie decided to sell its cameras for a lower price on the east coast.  This practice may violate the:

a.

National Trade Act

b.

Celler-Kefauver Act

c.

Robinson-Patman Act

d.

UCC

 

 

____          21. A franchise agreement that requires supplies to be purchased from the franchisor is:

a.

legal per se

b.

illegal per se

c.

subject to the rule of reason

d.

known as a horizontal merger

 

 

____          22. This act authorized state attorney generals and private parties to file civil lawsuits under the Clayton and Sherman Acts.

a.

the Smith-Klein Private Suit Act

b.

the Hart-Scott-Rodino Antitrust Improvement Act

c.

Celler-Kefauver Act

d.

Robinson-Patman Act

 

 

____          23. The DOJ can seek from a court a(n) ____ that orders the business to permanently cease its antitrust conduct.

a.

injunction

b.

confiscation

c.

divestiture

d.

dissolution

 

 

____          24. This defense to antitrust charges allows a company to refuse unilaterally to deal with retailers who ignore its suggested retail prices.

a.

the Colgate doctrine

b.

the changing market conditions defense

c.

the thrust upon defense

d.

the retail price justification defense

 

 

____          25. A business that has a monopoly can use this defense by showing that the monopoly might have been created by the production of a superior product, among other things.

a.

the Colgate doctrine

b.

the changing market conditions defense

c.

the thrust upon defense

d.

the retail price justification defense

 

 

____          26. The Social Security Act is more formally known as the:

a.

Medicare Act

b.

Old Age, Survivors, and Disability Insurance

c.

Federal Insurance Contributions Act

d.

Medicaid Act

 

 

____          27. Medicare is administered by:

a.

OSHA

b.

ERISA

c.

CMS

d.

FICA

 

 

____          28. Sari is 13 years old.  FOS, Inc. hires Sari to mop the floor and do other minor jobs.  Which statement is correct?

a.

children under the age of 14 are prohibited from such work

b.

children have a right to work

c.

children have a right to work only in right-to-work states

d.

children can only work if they belong to a labor union

 

 

____          29. The national overtime pay rate is:

a.

the same as the regular pay

b.

one and one-half times the regular rate

c.

twice the regular rate if twice the regular hours are worked

d.

not set by federal law

 

 

____          30. A right-to-work law is created by:

a.

Congress

b.

state legislatures

c.

federal administrative agencies

d.

federal courts

 

 

____          31. The duties of the NLRB include all of the following except:

a.

monitoring union elections

b.

investigating unfair labor practices

c.

issuing cease and desist orders to employers

d.

changing management personnel when labor violations occur

 

 

____          32. Which of the following acts established and created the NLRB?

a.

the Norris-Smith Act

b.

the Sherman Act

c.

the Wagner Act

d.

the Taft-Rodino Act

 

 

____          33. A right-to-work law:

a.

makes it illegal for union membership to be required for employment

b.

makes it easier to form a union

c.

requires an employee to join a union after they are hired

d.

requires a safe environment in which the employee has a right to work

 

 

____          34. This measures specific abilities related to job performance.

a.

BFSSs

b.

BFOQs

c.

professionally developed ability tests

d.

professionally validated ability tests

 

 

____          35. Under federal law, employers must provide:

a.

child care

b.

elder care

c.

health insurance plans

d.

none of the above

 

 

____          36. Excluded from protection under Title VII are workers involved in which field?

a.

baseball

b.

agriculture

c.

employment agencies

d.

banks

 

 

____          37. Unwelcome sexual advances, requests or other physical or verbal conduct of a sexual nature by a co-worker is:

a.

sexual harassment

b.

not actionable under federal law

c.

criminal in nature only

d.

none of the above

 

 

____          38. An employee's right to freedom of religion:

a.

is absolute under Title VII

b.

is absolute under the U. S. Constitution

c.

may be limited, since an employer need make only reasonable accommodation for religious practices

d.

can be eliminated by collective bargaining agreements

 

 

____          39. Title VII requires employers to make reasonable accommodations to an employee's or prospective employee's religious practices or beliefs; under what circumstances may an employer not accommodate such practices or beliefs?

a.

if it causes undue hardship in the process of doing business

b.

if the employee has too many requests

c.

if the owner has a different religious affiliation

d.

if the owner disagrees with the religious position of the employee

 

 

____          40. Sari, Inc. did not hire Chris as a store clerk because he was a man.  This type of discrimination is known as:

a.

disparate treatment

b.

disparate impact

c.

at will discrimination

d.

employment at will

 

 

____          41. Sari, Inc. did not hire Chris as a store clerk because he was a man.  This type of discrimination is known as:

a.

majority discrimination

b.

reverse discrimination

c.

inverted discrimination

d.

justifiable discrimination

 

 

____          42. According to EEOC procedures, a Title VII charge must be filed within how many days after the discriminatory act took place?

a.

30 days

b.

90 days

c.

180 days

d.

one year

 

 

____          43. This term refers to remedial steps taken to improve work opportunities for women and for racial and ethnic minorities  who suffered economic harm because as classes they were deprived of job opportunities in the past.

a.

reverse discrimination

b.

quota fulfillment

c.

aggressive action

d.

affirmative action

 

 

____          44. These air standards protect public welfare against adverse impact on human welfare.

a.

primary ambient

b.

secondary ambient

c.

tertiary ambient

d.

fourth ambient

 

 

____          45. This area is a locality where air pollution levels persistently exceed National Ambient Air Quality Standards.

a.

nonattainment area

b.

attainment area

c.

primary ambient area

d.

secondary ambient area

 

 

____          46. Which of the following is not required in an environmental impact statement?

a.

the environmental impact of the proposed action

b.

the economic consequences of the development

c.

the irreversible and irretrievable commitment of resources that could be avoided

d.

the alternatives to the proposed action

 

 

____          47. The requirements for an environmental impact statement include:

a.

identification of the environmental impact of the proposed action

b.

alternative actions that might be taken

c.

the irreversible effects that the action might create

d.

all of the above

 

 

____          48. This law created the Superfund.

a.

the Clean Air Act

b.

EIS

c.

CERCLA

d.

none of the above

 

 

____          49. This term describes the condition of global warming that is at the heart of ozone layer protection laws.

a.

hot house effect

b.

green house effect

c.

acid rain effect

d.

none of the above

 

 

____          50. Through this legislation, governments committed themselves to protect the ozone layer and to co-operate with each other in scientific research to improve understanding of the atmosphere processes.

a.

the Vienna Convention on the Protection of the Ozone Layer

b.

the Montreal Protocol on Substances that Deplete the Ozone Layer

c.

the Single European Act

d.

the Climate Change Treaty

 

 

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