WGU-D216-Business Law for Accountants (Actual) Exam with Complete Solutions

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A hardware store proactively informs clients whenever recalls happen. It is always willing to replace defective items at no cost even if the warranty has expired. Its philosophy is to maximize benefit... s and minimize harm. This approach is known as outcome-based ethics. What is a characteristic of outcome-based ethics? It focuses on the obligations of the corporation. It focuses on standards for behavior that traditionally were derived from religious authorities. It focuses on basic rights. It focuses on the consequences of an action. - ANSWER It focuses on the consequences of an action A floral company is currently hiring a new employee. After interviewing a great candidate, the human resources coordinator looked up the candidate on social media. The human resources coordinator found too many pictures of cocktails and beers on the candidate's profile. The prospective candidate worked part-time as a bartender. The human resources coordinator called the candidate and told him that she found a better fit even when she had not hired anyone for the position. Are the human resources coordinator's actions legal and ethical? The actions are legal and ethical. The actions are legal but unethical. The actions are illegal but ethical. The actions are illegal and unethical. - ANSWER The actions are legal but unethical. What is a purpose of the Uniform Commercial Code? Reduce difficulties for businesses conducting trade and commerce Facilitate commerce between the states and foreign countries Discriminate against jurisdictions that have not adopted this uniform law Establish the rules applying to real state, service, and employment contracts - ANSWER Reduce difficulties for businesses conducting trade and commerce Which type of speech is considered unprotected? Obscene Commercial Corporate political Symbolic - ANSWER Obscene Which kind of mark is "Cheesy" in connection with a spa company? Arbitrary Fanciful Descriptive Suggestive - ANSWER Arbitrary A company started a beverage company that sells a variety of juices. All the juices are sold in a plastic bottle with the company's name, the name of the juice, and a logo the owner found online. Which type of protection should the owner seek for the name of the juice? Patent Trade secret Copyright Trademark - ANSWER Trademark Which type of trademark receives automatic protection? Descriptive marks Personal name marks Geographic marks Fanciful marks - ANSWER Fanciful Marks Which type of trademarks never receive protection? Descriptive marks Generic marks Arbitrary marks Personal name marks - ANSWER Generic Marks What should a business use to protect its trade secrets? Non-disclosure agreement Trademark Non-compete agreement Patent - ANSWER Non-disclosure agreement Under the Uniform Commercial Code, and without the parties agreeing to the contrary in the contract, when is a title passed from the seller to the buyer for the sale of goods? During delivery of the goods to a shipping company During receipt of the goods by a buyer During physical acceptance of the goods by a buyer During receipt of the goods by a buyer and delivery of physical title to a shipping company - ANSWER During delivery of the goods to a shipping company A collector agreed to sell a rare collection of baseball cards to a buyer for $2,000 after several weeks of negotiation and discussion. After the sale, the buyer and collector do additional independent research and both learn that the baseball cards are worth only $20. What is the court's decision if this buyer sues this collector? A collector agreed to sell a rare collection of baseball cards to a buyer for $2,000 after several weeks of negotiation and discussion. After the sale, the buyer and collector do additional independent research and both learn that the baseball cards are worth only $20. What is the court's decision if this buyer sues this collector? No damages Rescission Compensatory damages Punitive damages - ANSWER No Damages A used car salesperson tells a buyer that the used car will last for at least five more years, if not many more. Which type of statement did this salesperson provide? Statement of fact Statement of opinion Statement of value Statement of purpose - ANSWER Statement of Opinion What is the time period for filing Chapter 7 Schedules after the filing of the petition? Within 90 days after filing the petition in bankruptcy Within 120 days after filing the petition in bankruptcy Within 180 days after filing the petition in bankruptcy Within 45 days after filing the petition in bankruptcy - ANSWER Within 45 days after filing the petition in bankruptcy What is the purpose of the means test? To keep corporations from abusing the bankruptcy process by filing Chapter 7 To keep upper-income people from abusing the bankruptcy process by filing Chapter 11 To keep upper-income people from abusing the bankruptcy process by filing Chapter 13 To keep upper-income people from abusing the bankruptcy process by filing Chapter 7 - ANSWER To keep upper-income people from abusing the bankruptcy process by filing Chapter 7 Which bankruptcy filing has the advantage of being the least expensive and complicated? Debtor-initiated filing under Chapter 13 Repayment Plan Debtor-initiated filing under Chapter 11 Reorganization Plan Creditor-initiated filing under Chapter 11 Reorganization Plan Debtor-initiated filing under Chapter 7 Liquidation - ANSWER Debtor-initiated filing under Chapter 13 Repayment Plan Debtor-initiated filing under Chapter 13 Repayment Plan Utility company Medical biller Car loan provider Student loan provider - ANSWER Car loan provider Which type of law primarily governs limited liability companies? Common law Federal law State law Both state and federal law - ANSWER State law When winding up a limited liability company (LLC), who would be paid first from the sales proceeds? Members who are creditors of the LLC Members for their capital contributions Members for their equal shares Members in accordance with the operating agreement - ANSWER Members who are creditors of the LLC For which circumstance may an individual be personally liable for actions of a limited liability company (LLC)? Member personally guarantees a business loan Customer sues LLC for negligence Member manages daily activities of the LLC LLC is taxed as a C corporation - ANSWER Member personally guarantees a business loan Partners 1, 2, and 3 execute a partnership agreement, contributing 51%, 39%, and 10%, respectively. The agreement is silent on voting between the partners. Under the Uniform Partnership Act (UPA), how will these partners' votes be counted? Partner 1's vote will count five times as much as Partner 3. Partner 3 will not be able to vote because he lacks a 25% interest. Partners 2 and 3 cannot outvote Partner 1 because their cumulative interests are less than 50%. Partners 1, 2, and 3 will have only one vote. - ANSWER Partners 1, 2, and 3 will have only one vote. A corporation wants to conduct business in a state other than the state of its formation. Which filing gives the corporation the right to conduct business in a state other than the state of its formation? Certificate of authority Certificate of formation Articles of incorporation Articles of organization - ANSWER Certificate of authority A father and son want to formalize their family cattle ranching operations into a legal business entity. They want the business entity to offer liability protection and perpetual existence as well as have a flow-through status for tax purposes. Which business entity is appropriate for this situation? S corporation C corporation General partnership Sole proprietorship - ANSWER S corporation Which event can cause an agency authority to terminate by the operation of law? Death or insanity of either the principal or the agent Abandonment of authority by the agent Revocation of consent to authority by the principal Renunciation of authority by the agent - ANSWER Death or insanity of either the principal or the agent What is the duty of the principal to the agent in order to terminate an agency at will? To give the agent reasonable notice of the termination of the agency To give the agent's third parties a notice of the termination of the agency To reimburse the agent for the loss incurred upon termination of the agency by the principal To provide the agent a valid reason for the termination of the agency - ANSWER To give the agent reasonable notice of the termination of the agency What is the entity created by the Sarbanes-Oxley Act of 2002? Public Company Accounting Oversight Board (PCAOB) Securities and Exchange Commission (SEC) International Accounting Standards Board (IASB) American Institute of Certified Public Accountants (AICPA) - ANSWER Public Company Accounting Oversight Board (PCAOB) [Show More]

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