Question: Which of the following is not a right granted under the privileges and immunities clause of the constitution?
Answer Options:
Traveling from state to state
Police protection in a state
Employment opportunities in a state.
In-state tuition at a state college or university.
Answer: In-state tuition at a state college or university.
Question: Which of the following business owners have the least personal liability for business debt?
A limited partner
A sole proprietor
There is no difference in the amount of liability any of these business owners have for business debt.
A general partner.
Answer: A limited partner
Question: A U.S. Statute at Large is?
Answer Options:
A law that has not been passed by Congress.
Another term for state decision.
A law passed by Congress and signed by the President.
A form of federal common law.
Answer: A law passed by Congress and signed by the President.
Question: If the United States Attorney General decided to prosecute those in Florida selling marijuana what would the authority to do so be?
Answer Options:
The supremacy clause
The Federal government has the power to enforce all felonies – Federal and state.
The 10th Amendment
Regulating drug use is an express power in the U.S. Constitution.
Answer: The supremacy clause
Question: Which of the following statements is CORRECT?
A. The total return on a bond during a given year is based only on the coupon interest payments received.
B. All else equal, a bond that has a coupon rate of 10% will sell at a discount if the required return for bonds of similar risk is 8%.
C. The price of a discount bond will increase over time, assuming that the bond’s yield to maturity remains constant.
Answer:
Question: At age 14, Louie Lewis executes a will. Which of the following is true?
Answer Options:
Provided there are two witnesses to the will, the will will be recognized.
As long as no one exerted undue influence on Louie, the will will be recognized.
As long as Louie has probate property, the will will be recognized.
Whether or not Louie conforms with all will formalities, the will will not be recognized as being valid.
Answer: Whether or not Louie conforms with all will formalities, the will will not be recognized as being valid.
Question: Amanda hired a private jet to fly her from California to Montana. The pilot was drunk and crashed the plane into the mountains. Although Amanda survived, she became paralyzed for life. After winning a tort action against the pilot, she discovers that flying while intoxicated is a crime. Amanda files a criminal complaint against the pilot. What is the probable outcome?
Answer Options:
Because she prevailed in the tort action, it will be easy for her to win the criminal case.
Amanda and/or her attorney can only bring a criminal action against the pilot if the state prosecutor allows it.
Amanda should have asked the judge in the tort case to convict the pilot of the crime.
Answer: Amanda and/or her attorney can only bring a criminal action against the pilot if the state prosecutor allows it.
Question: In order to establish a franchise with a franchisor, which of the following are required?
An individual or business entity who is a partner of the franchisor.
An S corporation.
An individual or business entity who is a shareholder of the franchisor.
An individual or business entity independent of the franchisor enters into a contract with the franchisor.
Answer: An individual or business entity independent of the franchisor enters into a contract with the franchisor.
Question: With respect to the demand requirement in bringing a shareholder derivative suit, which of the following is true?
The demand requirement only applies in direct corporate suits initiated by a shareholder.
In some instances, the demand requirement may be excused.
There is no demand requirement.
It is mandatory.
Answer: In some instances, the demand requirement may be excused.
Question: Hughes Car earns a substantial salary for a car dealership with respect to which he pays all required taxes. At times, Hughes deposits his salary into a foreign bank account. On one occasion, he withdrew the funds and purchased a home. Which of the following is true?
Answer Options:
Hughes has potentially committed a RICO violation.
Hughes is not guilty of money laundering because the money he deposited came from legal sources.
Hughes has committed the tort of conversion.
Hughes is guilty of money laundering because he deposited it into a foreign bank account.
Answer: Hughes is not guilty of money laundering because the money he deposited came from legal sources.
Question: Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
Answer Options:
a. The longer a project’s payback period, the more desirable the project is normally considered to be by this criterion.
b. One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money.
c. If a project’s payback is positive, then the project should be rejected because it must have a negative NPV.
d. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
e. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time.
Answer: b