Mgmt 209 Final Exam Review
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ONLY super sexy people named STEVEN can take this quiz.
Questions and Answers
- 1.
T/F: The export promotion growth strategy is a mainstay of the 4 Tigers, including Hong Kong and Tawain
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The export promotion growth strategy refers to a government policy that focuses on promoting and supporting exports as a means of driving economic growth. The 4 Tigers, including Hong Kong and Taiwan, have successfully implemented this strategy and achieved rapid economic development through their strong export-oriented industries. Therefore, it can be concluded that the export promotion growth strategy is indeed a mainstay of these countries.Rate this question:
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- 2.
T/F: Import substitution growth strategies will likely be adopted more so export promotion in a beggar try neighbor policies
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Import substitution growth strategies refer to economic policies that prioritize the development of domestic industries and production in order to reduce reliance on imported goods. In the context of a "beggar thy neighbor" policy, where a country aims to improve its own economic situation at the expense of its neighbors, it is likely that import substitution strategies would be favored over export promotion strategies. This is because import substitution focuses on domestic production, which would decrease the need for imports and potentially harm neighboring countries that rely on exporting goods to the country in question. Therefore, it is reasonable to conclude that import substitution growth strategies would be adopted more than export promotion in a beggar thy neighbor policy.Rate this question:
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- 3.
T/F: Creation of the permit system came about with the advent of the first water pollution act in the United States
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The creation of the permit system was a result of the first water pollution act in the United States. This act was implemented to regulate and control water pollution, and one of the measures taken was the introduction of a permit system. This system required individuals or companies to obtain permits in order to discharge pollutants into water bodies. Therefore, it can be concluded that the permit system was indeed established with the advent of the first water pollution act in the United States.Rate this question:
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- 4.
T/F: The discharge of heated materials into navigatable waterways is known as thermal pollution
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Thermal pollution refers to the discharge of heated materials into navigable waterways. This can occur when industrial processes or power plants release hot water or other heated substances into rivers, lakes, or oceans, causing a rise in water temperature. This increase in temperature can have detrimental effects on aquatic ecosystems, including the disruption of natural habitats, reduced oxygen levels, and the decline of certain species. Therefore, the statement "The discharge of heated materials into navigable waterways is known as thermal pollution" is true.Rate this question:
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- 5.
T/F:Â The area of government in charge of determining what is an endangered species is the EPA, established in 1970.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The correct answer is False. The area of government in charge of determining what is an endangered species is not the EPA (Environmental Protection Agency) established in 1970. It is actually the responsibility of the U.S. Fish and Wildlife Service (USFWS) and the National Marine Fisheries Service (NMFS), both of which are under the jurisdiction of the Department of the Interior.Rate this question:
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- 6.
T/F: A commercial dealer who violates the FIFRA, has the potential to be fined up to $25,000 and/or a year in prison
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) is a United States federal law that regulates the distribution, sale, and use of pesticides. According to FIFRA, a commercial dealer who violates the act can face penalties, including fines up to $25,000 and/or imprisonment for up to one year. Therefore, the statement is true.Rate this question:
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- 7.
T/F:Â Both the EU and the United States use a flexible exchange rate
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Both the EU and the United States use a flexible exchange rate. A flexible exchange rate is a system where the value of a currency is determined by market forces such as supply and demand. In this system, the exchange rate between two currencies can fluctuate freely. Both the EU and the United States have adopted this system, allowing their currencies (euro and US dollar, respectively) to float and be influenced by market conditions.Rate this question:
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- 8.
T/F:Â A common market differs from a customs union. A customs union can adopt common trade policies; common markets can't
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A common market is a higher level of economic integration compared to a customs union. In a common market, not only do member countries adopt common trade policies, but they also eliminate barriers to the free movement of goods, services, capital, and labor. This means that in a common market, there is not only a common trade policy but also a deeper level of integration that allows for the free movement of factors of production. Therefore, the statement that common markets can't adopt common trade policies is incorrect.Rate this question:
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- 9.
T/F:Â The US Coast Guard is in charge of the Oil Pollution Act, which regulates oil tankers and spills along shorelines
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The US Coast Guard is indeed in charge of the Oil Pollution Act, which regulates oil tankers and spills along shorelines. The act was passed in 1990 and gives the Coast Guard the authority to respond to and clean up oil spills, as well as to enforce regulations on oil tankers operating in US waters. This responsibility is crucial in protecting the environment and coastal areas from the harmful effects of oil pollution.Rate this question:
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- 10.
T/F: Rules of origin were established by the EU to stop counties from the use of screwdriver plants within the free trade area
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the rules of origin were not established by the EU to stop countries from the use of screwdriver plants within the free trade area. The rules of origin are actually used to determine the country of origin of a product for the purpose of applying tariffs and trade policies. They help prevent non-members from taking advantage of the benefits of the free trade area by importing products from outside and re-exporting them as if they were produced within the area.Rate this question:
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- 11.
T/F: The most favored nation policy can be modified when dealing with 3rd world areas and members of regional trading blocs
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The most favored nation policy refers to a principle in international trade where a country extends its lowest tariff rates to all other countries. However, this policy can be modified when dealing with 3rd world areas and members of regional trading blocs. This means that exceptions can be made to the most favored nation principle in order to provide special trade benefits or preferences to these specific regions or trading blocs.Rate this question:
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- 12.
T/F:Â The environmental law most hated by businesses is the restrictions placed upon them through the Clean Air Act
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because it claims that the Clean Air Act is the environmental law most hated by businesses. However, there is no evidence or data provided to support this claim. It is important to note that businesses' opinions on environmental laws can vary greatly depending on their industry, size, and specific circumstances. Therefore, it is not accurate to make a blanket statement about the Clean Air Act being universally hated by businesses.Rate this question:
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- 13.
T/F:Â Toxic air pollutants found within the air are using MACT rather than RACT or BACT
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given statement is true. MACT (Maximum Achievable Control Technology) is a standard set by the Environmental Protection Agency (EPA) to regulate and control toxic air pollutants. MACT is used specifically for hazardous air pollutants, such as mercury, lead, and benzene. RACT (Reasonably Achievable Control Technology) and BACT (Best Available Control Technology) are standards used for non-hazardous air pollutants. Therefore, toxic air pollutants are regulated using MACT rather than RACT or BACT.Rate this question:
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- 14.
T/F: BACT is used when an existing point source of pollution exists as well as an existing stationary source of pollution
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
BACT (Best Available Control Technology) is used to control air pollution from stationary sources, such as power plants or factories. It is not specifically used when both an existing point source and an existing stationary source of pollution exist. Therefore, the correct answer is False.Rate this question:
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- 15.
T/F:Â The two Western European countries that do not use the Euro as part of the EU are Norway and Switzerland
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because Norway is not a member of the EU and therefore does not use the Euro. Switzerland is also not a member of the EU and does not use the Euro.Rate this question:
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- 16.
T/F: Under the NAAQS system, standards set up by the EPA regarding vegetation are considered primary standards
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Under the NAAQS (National Ambient Air Quality Standards) system, standards set up by the EPA (Environmental Protection Agency) regarding vegetation are not considered primary standards. Primary standards are set to protect public health and include limits on pollutants such as ozone, particulate matter, carbon monoxide, sulfur dioxide, nitrogen dioxide, and lead. Vegetation standards, on the other hand, fall under the category of secondary standards, which are set to protect public welfare, including vegetation, visibility, climate, and property. Therefore, the given statement is false.Rate this question:
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- 17.
T/F:Â The Marshall Plan is similar to what was asked for under the Bretton Woods Agreement but for US allies
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Marshall Plan and the Bretton Woods Agreement were both initiatives aimed at promoting economic stability and recovery after World War II. The Marshall Plan provided financial aid to European countries, including US allies, to help rebuild their economies. Similarly, the Bretton Woods Agreement established a system of international monetary cooperation, which included financial assistance to countries in need. Therefore, it can be inferred that the Marshall Plan is similar to what was asked for under the Bretton Woods Agreement but specifically for US allies.Rate this question:
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- 18.
T/F: The MERCOSUR is an example of a customs union, established primarily with Latin and South American countries
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The MERCOSUR is indeed an example of a customs union. It is a regional trade agreement established primarily with Latin and South American countries. MERCOSUR aims to promote free trade and economic integration among its member countries by eliminating tariffs and other trade barriers. It was created to enhance economic cooperation and increase market access among its member states, which include Argentina, Brazil, Paraguay, and Uruguay.Rate this question:
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- 19.
T/F:Â Under the Clean Water Act, the wetlands are protected along the coastline by the US Coast Guard
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the wetlands along the coastline are not protected by the US Coast Guard under the Clean Water Act. The Clean Water Act is primarily enforced by the Environmental Protection Agency (EPA) and it focuses on regulating and maintaining the quality of water in the United States, including wetlands. The US Coast Guard, on the other hand, is responsible for maritime safety, security, and law enforcement. Therefore, the protection of wetlands along the coastline falls under the jurisdiction of the EPA, not the US Coast Guard.Rate this question:
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- 20.
T/F:Â The Taft Hartley Act amended the Wagner Act to include those actions by a union that were unfair
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Taft Hartley Act, also known as the Labor Management Relations Act, was indeed an amendment to the Wagner Act. It introduced provisions that addressed unfair labor practices by both unions and employers. This act specifically expanded the definition of unfair labor practices to include actions by unions that were considered unfair, such as secondary boycotts, closed shops, and featherbedding. Therefore, the statement that the Taft Hartley Act amended the Wagner Act to include those actions by a union that were unfair is true.Rate this question:
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- 21.
T/F:Â The Homestead Steel strike resulted in US Army government intervention on behalf of the railroads
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the Homestead Steel strike did not result in US Army government intervention on behalf of the railroads. The strike, which occurred in 1892, was a labor dispute between the Amalgamated Association of Iron and Steel Workers and the Carnegie Steel Company. The strike involved violent clashes between workers and company-hired Pinkerton detectives, but the US Army was not involved in the conflict. The strike ultimately ended with the defeat of the union and a significant setback for the labor movement.Rate this question:
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- 22.
T/F:Â The Magna Carta of Labor was enacted in 1935 and includes a portion that outlaws yellow dog contracts
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Magna Carta of Labor, enacted in 1935, indeed includes a portion that outlaws yellow dog contracts. Yellow dog contracts were agreements that prohibited employees from joining or forming labor unions. The Magna Carta of Labor, also known as the Wagner Act, was a landmark legislation that aimed to protect workers' rights and promote collective bargaining. By outlawing yellow dog contracts, the act ensured that employees had the freedom to join or form labor unions without fear of retaliation or discrimination from their employers.Rate this question:
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- 23.
T/F:Â Counties such as the UK and Denmark use the Euro but are not a part of the European Union
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the UK and Denmark are both part of the European Union but they do not use the Euro as their currency. The UK uses the British Pound and Denmark uses the Danish Krone. The Euro is the common currency used by the majority of the countries in the European Union, but not all member countries have adopted it.Rate this question:
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- 24.
The Immigration Act of 1924 was significant to workers in America in that:
- A.
First federal law dealing with labor management
- B.
Gave workers the right to unionize
- C.
Outlawed yellow dog contracts by employers
- D.
Without any official status it favored workers for the first time
- E.
Used by wabbies to promote social unionization
Correct Answer
D. Without any official status it favored workers for the first timeExplanation
The correct answer is "without any official status it favored workers for the first time." The Immigration Act of 1924, also known as the Johnson-Reed Act, was primarily focused on immigration restrictions rather than labor management. However, it indirectly favored workers by establishing immigration quotas that heavily restricted the entry of immigrants from certain countries. This restriction created a labor shortage, leading to increased demand for American workers and potentially higher wages. Although the act did not directly grant workers any new rights or protections, its impact on the labor market favored American workers by reducing competition from immigrant labor.Rate this question:
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- 25.
In order to negotiate a better deal labor union leaders tell its workers to not work as hard or to stop working altogether in an attempt to get a better CBA. By doing so the labor union leaders have caused what to happen?
- A.
Secondary boycott
- B.
Featherbedding
- C.
Used hot cargo agreements
- D.
Closed shop
- E.
Open shop
Correct Answer
B. FeatherbeddingExplanation
Featherbedding refers to the practice of labor unions creating unnecessary jobs or imposing work restrictions in order to increase employment and protect existing jobs. In this scenario, labor union leaders are instructing workers to not work as hard or to stop working altogether. By doing this, they are intentionally creating a situation where there is a reduced level of productivity or output. This can be seen as a form of featherbedding as it aims to protect the jobs of existing workers by reducing the need for additional labor or by creating a situation where more workers are required to complete the same amount of work.Rate this question:
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- 26.
Election regarding the certification of the unions as exclusive representatives of the workers call for:
- A.
Be conducted by the National Labor Relations Board created by the Wagner Act
- B.
Those elections to be conducted by secret ballot
- C.
Require over 30% of the authorization cards signed in order to schedule the election
- D.
Requires at least 50% of the workers to vote in a certify the union
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
The correct answer is "all of the above" because all of the statements mentioned are true. The election regarding the certification of the unions as exclusive representatives of the workers is conducted by the National Labor Relations Board, which was created by the Wagner Act. These elections are conducted by secret ballot and require over 30% of the authorization cards to be signed in order to schedule the election. Additionally, at least 50% of the workers need to vote in order to certify the union. Therefore, all of the given statements are necessary for the election process.Rate this question:
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- 27.
FEATHERBEDDING would likely be a violation of which act?
- A.
Federal Anti Injunction Act
- B.
National Labor Relations Act
- C.
Clayton Act
- D.
Labor Management Relations Act
- E.
Labor Management Relations Act
Correct Answer
D. Labor Management Relations ActExplanation
FEATHERBEDDING refers to the practice of requiring employers to hire more workers than necessary, which can lead to inefficiency and increased costs. The Labor Management Relations Act, also known as the Taft-Hartley Act, was enacted to regulate the relationship between labor unions and employers. It prohibits certain unfair labor practices, including featherbedding, by labor unions. Therefore, FEATHERBEDDING would likely be a violation of the Labor Management Relations Act.Rate this question:
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- 28.
Which act or case gave the rational for the definition of "legal dispute" to be enhanced?
- A.
Norris LaGuardia Act
- B.
Wagner Act
- C.
Landrum Griffin Act
- D.
Illyvs. Jacksonville Bulk case
- E.
Immigration Act
Correct Answer
D. Illyvs. Jacksonville Bulk caseExplanation
The Illy vs. Jacksonville Bulk case is the correct answer because it provided the rationale for enhancing the definition of "legal dispute." This case likely involved a dispute that raised important legal questions and set a precedent for future cases. The details of the case are not provided, but it can be inferred that it had a significant impact on shaping the definition of "legal dispute" in some way.Rate this question:
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- 29.
Which of the following is the Magna Carta of Labor, so to speak?
- A.
Norris LaGuardia Act
- B.
Wagner Act
- C.
Landrum Griffin Act
- D.
Taft Hartley Act
- E.
Immigration Act
Correct Answer
B. Wagner ActExplanation
The Wagner Act is considered the Magna Carta of Labor because it is a landmark piece of legislation that established the rights of workers to organize and bargain collectively. It created the National Labor Relations Board (NLRB) to enforce these rights and prohibited unfair labor practices by employers. The Wagner Act was a significant milestone in labor history and laid the foundation for modern labor laws in the United States.Rate this question:
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- 30.
Workers at ACME Widget Manufacturing Co. want to increase the wages for unskilled labor...in order to do so they get WalMart to have its employees to on strike until WalMart stops selling ACME's widgets. This is an example of something illegal under:
- A.
Norris LaGuardia Act
- B.
Wagner Act
- C.
Landrum Griffin Act
- D.
Taft Hartley Act
- E.
Immigration Act
Correct Answer
D. Taft Hartley ActExplanation
This scenario is an example of an illegal action under the Taft Hartley Act. The Taft Hartley Act, also known as the Labor-Management Relations Act, prohibits certain unfair labor practices. In this case, the workers are engaging in a secondary boycott, which involves pressuring a third party (in this case, Walmart) to stop doing business with the employer (ACME Widget Manufacturing Co.) in order to achieve their desired outcome. Secondary boycotts are prohibited under the Taft Hartley Act, making this action illegal.Rate this question:
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- 31.
If the workers were to go on strike at ACME for the better wages, ACME Inc. could:
- A.
Not be allowed to find replacement workers to work for those who are on strike
- B.
Petition the president to intervene under the Wagner Act
- C.
Keep those scab (replacement) employees on payroll even after the strike is settled
- D.
Fire those employees to have caused a conspiracy by striking for better wages
- E.
None of the above
Correct Answer
C. Keep those scab (replacement) employees on payroll even after the strike is settledExplanation
If the workers were to go on strike at ACME for better wages, ACME Inc. could keep those replacement employees on payroll even after the strike is settled. This means that the company would continue to employ the replacement workers, even when the original employees return to work. This is a possible scenario as the company may choose to retain the replacement workers if they have proven to be efficient and productive during the strike period.Rate this question:
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- 32.
The significance of the Norris LaGuardia Act can best be illustrated by:
- A.
Official union recognition status
- B.
Elimination of the secondary boycott
- C.
Determination of the unfair labor practices by an employer
- D.
Movement of labor union activity outside the realm of antitrust law
- E.
Elimination of the yellow dog contract for employers
Correct Answer
E. Elimination of the yellow dog contract for employersExplanation
The significance of the Norris LaGuardia Act can best be illustrated by its elimination of the yellow dog contract for employers. The yellow dog contract was a type of agreement that prohibited employees from joining or forming labor unions. By eliminating this contract, the Norris LaGuardia Act protected the rights of workers to organize and engage in collective bargaining without fear of retaliation or coercion from their employers. This marked a significant shift in labor relations and helped to empower workers in their fight for fair treatment and better working conditions.Rate this question:
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- 33.
The Labor Management Reporting and Disclosure Act accomplished:
- A.
Setting up unfair labor practices by an employer
- B.
Setting up unfair labor practices by employees
- C.
Bill of rights for union workers within internal union activities
- D.
Outlawed secondary boycotts and allowed right to work laws to exist within states
Correct Answer
C. Bill of rights for union workers within internal union activitiesExplanation
The Labor Management Reporting and Disclosure Act established a bill of rights for union workers within internal union activities. This means that the act provided protections and guarantees for union members regarding their rights and activities within their own unions. It aimed to ensure transparency, democracy, and fairness within the internal operations of labor unions.Rate this question:
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- 34.
The National Labor Relations Board:
- A.
Is an economy wide AA
- B.
Is an independent AA
- C.
Dismisses most grievance cases filed by workers or their representatives
- D.
All of the above
- E.
Both a and c (but not b)
Correct Answer
D. All of the aboveExplanation
The National Labor Relations Board (NLRB) is an independent organization that handles labor disputes and enforces labor laws in the United States. It is responsible for overseeing the relationship between employers and employees, ensuring fair treatment and protecting workers' rights. The NLRB has jurisdiction over a wide range of industries and sectors, making it an economy-wide entity. Additionally, it does dismiss most grievance cases filed by workers or their representatives, indicating that it has the authority to make decisions on such matters. Therefore, the correct answer is "all of the above."Rate this question:
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- 35.
Unions under the Sherman Act in 1890 were considered to be:
- A.
Exempt from antitrust law
- B.
An attempt to illegally restraining trade
- C.
Outlawed due to common law interpretation
- D.
Unofficial until the Immigration Act gave official recognition
Correct Answer
B. An attempt to illegally restraining tradeExplanation
The correct answer is "an attempt to illegally restrain trade." This is because the Sherman Act of 1890 was enacted to prevent and prohibit any agreements or actions that would unfairly limit competition or restrain trade. Unions, in this context, were seen as potentially engaging in practices that could harm competition and limit the free market. Therefore, they were considered to be attempting to illegally restrict trade, which went against the principles of the Sherman Act.Rate this question:
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- 36.
The official name for the Wagner Act is:
- A.
Federal Anti Injunction Act
- B.
National Labor Relations Act
- C.
Clayton Act
- D.
Labor Management Relations Act
- E.
Labor Management Reporting and Disclosure Act
Correct Answer
B. National Labor Relations ActExplanation
The correct answer is the National Labor Relations Act. This act, also known as the Wagner Act, was passed in 1935 and aimed to protect the rights of employees and promote collective bargaining between employers and labor unions. It established the National Labor Relations Board (NLRB) to enforce labor laws and investigate unfair labor practices. The act played a significant role in strengthening the rights of workers and improving labor conditions in the United States.Rate this question:
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- 37.
The Wagner Act accomplishes which of the following issues regarding labor union activity?
- A.
Defines unfair labor practices by an employer
- B.
Give official union recognition is regards to collective bargaining
- C.
Both a and b
- D.
Neither a nor b
Correct Answer
C. Both a and bExplanation
The Wagner Act, also known as the National Labor Relations Act (NLRA), addresses both issues regarding labor union activity mentioned in options a and b. It defines unfair labor practices by an employer, such as interfering with employees' rights to form, join, or assist labor organizations, and restraining or coercing employees in the exercise of these rights. Additionally, the Wagner Act provides official union recognition in relation to collective bargaining, allowing unions to negotiate on behalf of employees regarding wages, working conditions, and other employment terms. Therefore, the correct answer is both a and b.Rate this question:
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- 38.
Which of the following would likely not be a part of the mandatory subject of bargaining as required by law?
- A.
Job security
- B.
Profit staring plans
- C.
Plant closures
- D.
All of the above would be under the mandatory subject of bargaining
Correct Answer
D. All of the above would be under the mandatory subject of bargainingExplanation
All of the options listed, including job security, profit sharing plans, and plant closures, would likely be part of the mandatory subject of bargaining as required by law. This means that these topics are required to be discussed and negotiated between employers and employees or their representatives.Rate this question:
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- 39.
If ACME Inc. decides to flight a hostile takeover with a pacman defense it will likely:
- A.
Use corporate funds for purchase of another company
- B.
Sell off parts of the company
- C.
Sell off entire company
- D.
Make it expensive for the company to be taken over by instituting things such a golden parachutes
Correct Answer
A. Use corporate funds for purchase of another companyExplanation
If ACME Inc. decides to use a pacman defense, it means that they will try to counter a hostile takeover by aggressively acquiring another company. This strategy involves using corporate funds to purchase the target company, which can make ACME Inc. a less attractive target for the hostile bidder. By acquiring another company, ACME Inc. aims to increase its size and make the takeover more difficult and expensive for the hostile bidder. This defensive tactic can help ACME Inc. maintain control and independence.Rate this question:
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- 40.
S Corps are taxed similar to what other form of business entity?
- A.
Sole proprietorships
- B.
Corporations
- C.
Limited partnerships
- D.
Partnerships
Correct Answer
D. PartnershipsExplanation
S Corps are taxed similar to partnerships. This means that the income and losses of the S Corp are passed through to the shareholders and reported on their individual tax returns. Similarly, partnerships also pass through their income and losses to the partners, who report them on their personal tax returns. This is in contrast to corporations, which are subject to double taxation, where the corporation is taxed on its profits and the shareholders are taxed on the dividends they receive. Limited partnerships and sole proprietorships also have different tax treatment compared to S Corps.Rate this question:
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- 41.
Under a limited partnership:
- A.
All owners have limited liability
- B.
All owners have control over daily operations
- C.
Must have at least one general partner
- D.
All of the above
Correct Answer
C. Must have at least one general partnerExplanation
Under a limited partnership, all owners have limited liability, meaning their personal assets are protected from the business's debts and liabilities. Additionally, all owners do not have control over daily operations; instead, there must be at least one general partner who has the authority and responsibility for managing the business. Therefore, the correct answer is that a limited partnership must have at least one general partner.Rate this question:
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- 42.
The corporate opportunity rule would apply to which of the following employees at ACME inc.?
- A.
Janitor
- B.
10%+ shareholder
- C.
Paralegal
- D.
CEO
- E.
All of the above
Correct Answer
D. CEOExplanation
The corporate opportunity rule applies to the CEO of ACME Inc. This rule states that corporate officers and directors have a fiduciary duty to act in the best interest of the company and not to take personal advantage of business opportunities that rightfully belong to the company. As the CEO holds a high-ranking position within the company, they have a greater responsibility to uphold this rule and ensure that they do not exploit company opportunities for personal gain. Therefore, the CEO would be subject to the corporate opportunity rule.Rate this question:
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- 43.
Short swing profits:
- A.
Have an extended time horizon similar to insider trading
- B.
Require the person to make monetary profit which will be given back to the corporation
- C.
Are a violation of 10b-5 of the Securities Exchange Act of 1934
- D.
All of the above
- E.
Both b and c (but not a)
Correct Answer
B. Require the person to make monetary profit which will be given back to the corporationExplanation
Short swing profits refer to profits made by corporate insiders, such as officers and directors, from buying and selling the corporation's stock within a six-month period. These profits are considered a violation of 10b-5 of the Securities Exchange Act of 1934. The profits made must be monetary and are required to be given back to the corporation. Therefore, the correct answer is that short swing profits require the person to make monetary profit which will be given back to the corporation.Rate this question:
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- 44.
An 8k report will be filed with the SEC by a corporation when:
- A.
Key customer or employee leaves the organization
- B.
Annually regarding the financial statements of the past year
- C.
Reports created every three months regarding profits etc.
- D.
Prior to SEC approval of a possible security
- E.
Both a and d are correct
Correct Answer
A. Key customer or employee leaves the organizationExplanation
When a key customer or employee leaves the organization, it is considered a material event that may impact the company's financial performance. As a result, the corporation is required to file an 8k report with the Securities and Exchange Commission (SEC). This report provides timely information about significant events that shareholders and investors need to be aware of. It is separate from the annual financial statements and is filed whenever there is a material event that could potentially affect the company's financial position or operations.Rate this question:
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- 45.
Which of the following is not under the guidelines of the Securities Exchange Act of 1934 but rather the Security Act of 1933?
- A.
Proxy solicitation
- B.
Insider trading laws
- C.
Short swing trading laws
- D.
Issuance of initial security on open market
Correct Answer
D. Issuance of initial security on open marketExplanation
The issuance of initial security on the open market is not under the guidelines of the Securities Exchange Act of 1934 but rather the Security Act of 1933. The Securities Act of 1933 primarily focuses on the initial issuance and registration of securities, requiring companies to provide full and fair disclosure of information to potential investors. On the other hand, the Securities Exchange Act of 1934 regulates the ongoing trading and secondary market activities, including proxy solicitation, insider trading laws, and short swing trading laws.Rate this question:
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- 46.
An LLC differs from a corporation by giving up both continuity of life and free transferability of interests. By giving those two things a LLC receives what advantage that a corporation does not receive:
- A.
Ease in raising capital
- B.
Limited liability
- C.
Single taxation of profits
- D.
Little or no formality necessary in creating the business
- E.
Reduction in the amount of possible owners of the business
Correct Answer
C. Single taxation of profitsExplanation
An LLC receives the advantage of single taxation of profits that a corporation does not receive. This means that the LLC's profits are only taxed once at the individual level, whereas in a corporation, profits are taxed at both the corporate level and the individual level when distributed as dividends. This can result in a lower overall tax burden for LLC owners.Rate this question:
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- 47.
Red Herrings are:
- A.
Prior to SEC approval of a security
- B.
Legally allowable defenses to hostile takeovers
- C.
Employees who commit insider trading and short swing violations
- D.
Established through 8 K reports
- E.
None of the above
Correct Answer
A. Prior to SEC approval of a securityExplanation
Red Herrings are documents that contain preliminary information about a company's securities offering, which are distributed to potential investors before the approval of the offering by the Securities and Exchange Commission (SEC). These documents provide details about the company's business, financials, and risks involved in the investment. They are used to generate interest and gauge investor demand before the official offering is made. Therefore, the correct answer is "prior to SEC approval of a security."Rate this question:
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- 48.
Title 7 protects those who are:
- A.
Of a different sexual orientation than the mainstream
- B.
Under affirmative action programs
- C.
Being sexually harassed at the workplace
- D.
Those having their age used against them if they are over 40
- E.
All of the above
Correct Answer
C. Being sexually harassed at the workplaceExplanation
Title 7 of the Civil Rights Act protects individuals from workplace discrimination based on various factors, including sex. This protection extends to those who are being sexually harassed at the workplace. Therefore, the correct answer is "being sexually harassed at the workplace."Rate this question:
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- 49.
Under the child labor laws of the Fair Labor Standards Act
- A.
A 14 year old has the same restrictions as a 15 year old
- B.
A 16 year old may work during school hours
- C.
A 17 year old may work in hazardous conditions but not a 16 year old
- D.
Both a and b are correct (but not c)
- E.
Both b and c are correct (but not a)
Correct Answer
D. Both a and b are correct (but not c)Explanation
Both a and b are correct because the Fair Labor Standards Act states that a 14-year-old and a 15-year-old have the same restrictions, meaning they have similar limitations on the number of hours they can work and the types of jobs they can perform. Additionally, a 16-year-old is allowed to work during school hours, which is stated in the Act. However, a 16-year-old is not permitted to work in hazardous conditions, which is a restriction that only applies to 17-year-olds.Rate this question:
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- 50.
The Equal Pay Act would apply in cases of:
- A.
A black man receiving less than a white man for the same exact job
- B.
A predominately male oriented job to be paid the same as a female dominated area of the workforce if the jobs are comparable in terms of the same value to society
- C.
A male being hired over a female based upon their gender
- D.
All of the above
- E.
None of the above
Correct Answer
E. None of the aboveExplanation
The Equal Pay Act would not apply in any of the given cases. The Act specifically addresses pay discrimination based on gender, not race. Therefore, the first option is incorrect. Additionally, the Act focuses on equal pay for equal work, not for jobs that are comparable in terms of societal value. Therefore, the second option is also incorrect. Lastly, the Act prohibits gender-based pay discrimination, but it does not address hiring decisions based on gender. Hence, the third option is also incorrect. Therefore, the correct answer is "none of the above."Rate this question:
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