Question: The location of Publix provides insufficient parking for its customers. Next to Publix is a Best Buy with more than ample parking for its customers. Publix approaches Best Buy to for the right for its customers to park in Best Buy parking spaces. Best Buy agrees provided that in each of Publix’s own parking spaces [on Publix property], there is a Best Buy promotional sign. The parties agree. The contract between Publix and Best Buy is enforceable or unenforceable because?
Answer Options:
Enforceable only if Publix customers actually park in Best Buy spaces.
Unenforceable because Publix’s promise to place Best Buy promotional signs was illusory.
Enforceable because there was bargained for consideration.
Unenforceable because Best Buy did not receive fair value for the use of its parking spaces.
Answer: Enforceable because there was bargained for consideration.
Question: Bankruptcy seems to have lots of numbers – particularly a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. What exactly is the difference?
A Chapter 7 bankruptcy is resolved in state court whereas a Chapter 13 bankruptcy is resolved in federal court.
A Chapter 7 bankruptcy involves a liquidation of the debtor’s assets followed by a discharge of debt; a Chapter 13 bankruptcy involves payments of creditors over a 5-year period followed by a discharge of the remaining debt.
There is no difference between the two bankruptcies.
A Chapter 7 bankruptcy involves a liquidation of the debtor’s assets followed by a discharge of debt; a Chapter 13 bankruptcy involves payments of creditors over a 3-year period followed by a discharge of the remaining debt.
Answer: A Chapter 7 bankruptcy involves a liquidation of the debtor’s assets followed by a discharge of debt; a Chapter 13 bankruptcy involves payments of creditors over a 5-year period followed by a discharge of the remaining debt.
Question: What is the best argument to be made for concluding that a book is intangible personal property?
Answer Options:
It is not real property.
There is no viable argument since you can hold a book in your hand.
Although a book is tangible, the ideas and general appeal of a book could also be considered to have the attribute to exist in the same ilk. Hence, ideas and appeal, despite being intangible if it is worth more than the cost of the paper and the cover.
It is not attached to land.
Answer: Although a book is tangible, the ideas and general appeal of a book could also be considered to have the attribute to exist in the same ilk. Hence, ideas and appeal, despite being intangible if it is worth more than the cost of the paper and the cover.
Question: Which of the following types of business can an individual doing business alone not become?
A sole proprietor
A partnership
An S corporation
A C corporation
Answer: A partnership
Question: Molly Cule asks her neighbor Miranda Wrights to buy 2% milk for her at the supermarket. Instead, because Miranda thinks that oat milk is healthier but it’s instead of 2% milk. Which of the following is true?
Answer Options:
Because Miranda purchased milk she believed was healthier, she acted within her implied authority as an agent.
By not purchasing 2% milk, Miranda violated her express authority owing to Molly as an agent.
Because Molly did not provide compensation to Miranda for purchasing the milk, she does not owe any duty to Molly as an agent.
Because Molly did not specifically tell Miranda not to purchase 2% milk, Miranda acted within her implied authority as an agent.
Answer: By not purchasing 2% milk, Miranda violated her express authority owing to Molly as an agent.
Question: Which of the following statements is CORRECT?
Answer Options:
a. An NPV profile graph shows how a project’s payback varies as the cost of capital changes.
b. The NPV profile graph for a normal project will generally have a positive (upward) slope as the life of the project increases.
c. An NPV profile graph is designed to give decision makers an idea about how a project’s risk varies with its life.
d. An NPV profile graph is designed to give decision makers an idea about how a project’s contribution to the firm’s value varies with the cost of capital.
e. We cannot draw a project’s NPV profile unless we know the appropriate WACC for use in evaluating the project’s NPV.
Answer: d
Question: At a starway fancy partner, you are asked to express the meaning of separation of powers as set forth in the U.S. Constitution. Your response is?
Answer Options:
The administrative agencies in the executive branch.
The enactment of laws by Congress.
How the three branches of government interact with each other.
How the judicial branch operates.
Answer: How the three branches of government interact with each other.
Question: What must be true for a “meeting of the minds” in contract law to be valid?
All parties involved must agree on the contract terms after negotiations.
There must be a formal ceremony acknowledging agreement.
Witnesses must sign the contract to confirm understanding by both parties.
The contract needs to be notarized to be considered valid.
Answer: All parties involved must agree on the contract terms after negotiations.
Question: When a corporation issues a bond, which of the following is true?
Answer Options:
An individual who acquires the bond becomes a preferred shareholder of the corporation.
An individual who acquires the bond becomes entitled to preferred dividends.
An individual who acquires the bond is entitled to special voting rights.
Answer: None of the above; acquiring a bond typically does not confer shareholder status or voting rights.
Question: Which of the following statements is CORRECT?
a. You hold two bonds, a 10-year, zero coupon, and a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, applies to both bonds. If the market rate rises from its current level, the zero coupon bond will experience the larger percentage decline.
b. The time to maturity does not affect the change in the value of a bond in response to a given change in interest rates.
c. You hold two bonds. One is a 10-year, zero coupon, bond and the other is a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, applies to both bonds. If the market rate rises from the current level, the zero coupon bond will experience the smaller percentage decline.
d. The shorter the time to maturity, the greater the change in the value of a bond in response to a given change in interest rates.
e. The longer the time to maturity, the smaller the change in the value of a bond in response to a given change in interest rates.
Answer Options:
a. True
b. False
c. False
d. False
e. False
Answer: a. True
Question: Which best describes the relationship between the U.S. Constitution and a state Constitution?
Answer Options:
Co-equal in how they are enforced.
They are both statutory law.
The U.S. Constitution cannot violate the state constitution.
The state constitution cannot violate the U.S. Constitution.
Answer: The state constitution cannot violate the U.S. Constitution.
Question: The 14th Amendment to the Constitution is unique due to the following?
Answer Options:
Similar to all other Constitutional amendments.
Authorizes Congress to impose an income tax.
Although the Constitution grants citizens certain rights with respect to the Federal government, the 14th Amendment grants many of those same rights to citizens with respect to the states.
It provides for separation of powers.
Answer: Although the Constitution grants citizens certain rights with respect to the Federal government, the 14th Amendment grants many of those same rights to citizens with respect to the states.
Question: Hughes and Miranda arrive at a fancy smancy restaurant that is full and has a long waiting list. Miranda approaches the hostess and tells her that if she sets up a table for her and Hughes, she will give the hostess $100. The hostess does so but Miranda refuses to pay her $100. The hostess sues Miranda. Which of the following is true?
The hostess loses because $100 for seating Miranda and Hughes is excessive.
The hostess finds because of freedom of contract.
The hostess loses because she is paid by the restaurant to seat diners.
The hostess wins because by setting up a table for Miranda and Hughes she accepted Miranda’s offer.
Answer: The hostess wins because by setting up a table for Miranda and Hughes she accepted Miranda’s offer.
Question: One of your friends asks you to explain the difference between a license and an easement in gross. Your response is…
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property to extract something from the property.
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property in order to have access to a road.
An easement in gross is the right to enter property for a particular purpose – a license is the right to enter property to extract something from the property.
There is no difference.
Answer: A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property to extract something from the property.
Question: Which of the following is a joint tenant with right of survivorship able to do?
Answer Options:
Create a life estate for another individual to have exclusive use of the property.
Transfer ownership in fee simple.
Sell his or her interest to a third party as a tenant in common interest.
The joint tenant is unable to do any of the alternatives.
Answer: Sell his or her interest to a third party as a tenant in common interest.
Question: Even if the correlation between the returns on two securities is +1.0, if the securities are combined in the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone.
a. True
b. False
Answer:
Question: The consequence of declining insurance coverage on a rental car is which of the following?
It invalidates the entire contract.
The renter can always accept insurance coverage up to the time that the car is returned.
Declining the coverage is unconscionable.
It is a rejection of the offer so that the renter cannot later accept it.
Answer: It is a rejection of the offer so that the renter cannot later accept it.