LAW 531 Week 2 Quiz 1 | University of Phoenix
- University of Phoenix / LAW 531
- 17 May 2022
- Price: $10
- Humanities Assignment Help / Law assignment help
LAW 531 Week 2 Quiz 1 | University of Phoenix
1. True or false: Some small businesses may issue stocks to employees instead of compensation when money is tight.
True
False
4. Which of the following is not true of corporations?
o Executives are not subject to the same duty of care in carrying out the corporation's purposes as the board of directors.
o Executives carry out the day-to-day operations of the corporation.
o The board of directors hires executives of a corporation.
o Directors will not be subject to lawsuit from shareholders as long as they act in a reasonable and prudent way.
5. True or false: In a franchise agreement, the franchisor and the franchisee are separate legal entities.
True
False
8. Which of the following is not true of general partnerships?
o Partners share profits and losses according to the partnership agreement.
o Partners have an equal right to engage in the management of the business.
o Partners have joint ownership of business assets.
o Partners must always agree to split the profits and losses evenly.
9. Corporations created to assist doctors, lawyers, accountants, and so on are known as _________________ corporations.
o alien
o closely held
o not-for-profit
o professional
10. True or false: Profits and losses from an LLC must be distributed in the same proportion to all members.
True False
13. Which of the following is true of general and limited partners in a limited partnership?
o General and limited partners are jointly responsible for partnership debt.
o General partners are required to invest capital and refrain from managing the business.
o General partners are not liable for partnership debts.
o Limited partners are not liable for partnership debts.
14. Which of the following is not true of a business operating under sole proprietorship?
o A sole proprietor pays only personal taxes.
o If the owner dies, the business usually dies as well.
o No government approval is required to set up a sole proprietorship.
o A sole proprietorship is considered a separate legal entity.
15. An administrative agency is prohibited from doing all but which of the following?
o violating judicial decisions
o exercising legislative power
o making arbitrary laws
o extending beyond its authority
16. Which of the following is true of administrative agencies?
o All administrative agencies answer directly to the president.
o An existing administrative agency may not create a new law.
o Each state and local government has administrative agencies.
o Administrative agencies may overrule judicial decisions.
17. _________________ establishes the protocol that must be followed by an administrative agency while enforcing a(n) _________________.
o Interpretive law; substantive law
o Substantive law; interpretive law
o Procedural law; substantive law
o Substantive law; procedural law
18. True or false: Production cost may be used as a defense against a company accused of price discrimination.
True
False
21. The act of controlling prices for goods and services is known as _________________.
o dividing markets
o regulating competitive practices
o controlling output
o price fixing
22. An agreement to refuse to deal with another business is known as a _________________.
o division
o control
o boycott
o split
23. Which of the following is not a prerequisite to be considered a failing company prior to entering a merger?
o Its assets would evaporate but for a merger.
o Too much competition exists in a particular geographical area.
o No other buyer is available to rescue the company.
o There is no other reasonable alternative.
24. Which of the following is a legitimate defense against a claim of exercise of monopoly power?
o The business acquired the monopoly innocently as an unintended consequence of another purpose.
o The business engaged in a tying arrangement with another business.
o The business owns 25 percent of the geographical market.
o The business owns 75 percent of the product market.
25. One business having almost all of one product type or service within a geographical area is known as _________________ power.
o vertical
o consolidated
o monopoly
o horizontal
26. True or false: The calculation of monopoly power rests squarely on a firm’s percentage of dominance in the relevant market.
True False
29. The U.S. Supreme Court has developed two tests for determining the lawfulness of an agreement: the per se rule and the _________________.
o rule of law
o rule of competition
o rule of trust
o rule of reason
30. In a(n) _________________, the distributor requires the purchaser of another product to buy another associated product.
o geographic allocation agreement
o tying arrangement
o exclusive dealing agreement
o price maintenance agreement
USA 
India