Question: Which of the following best describes the role of charitable activities of a publicly traded corporation pursuant to the business approach of corporate responsibility?
Answer Options: The corporation should take a vote of the shareholders to determine which charities to support. The board of directors should decide which charities to support. Since there are so many shareholders in a publicly traded corporations, the shareholders rather than the corporation should decide which charities to support. The CEO of the corporation should decide which charities to support. Correct Answer: The board of directors should decide which charities to support.
Question: At a end of semester get together, the topic of taxes comes up. An enlightened person brings up the enactment of the 16th Amendment – authorizing Congress to impose an income tax. Fascinated you make this right on observation?
Answer Options: The 16th Amendment is an example of amending the Constitution to allow Congress to impose income tax prior to that it was unconstitutional. It was necessary because in all instances prior to the 16th Amendment when Congress enacted an income tax, the Supreme Court found it to be unconstitutional. More than one of the alternatives is correct. Correct Answer: More than one of the alternatives is correct.
Question: Which of the following is true with respect to deceptive advertising by corporations?
Answer Options: It is strictly an ethical issue that businesses should address. It is strictly a corporate free speech issue in which the government has a strong interest to regulate to protect vulnerable individuals from fraud. It is both an ethical issue and a corporate free speech issue. Deceptive advertising is free market so it is neither an ethical issue or a corporate free speech issue. Correct Answer: It is both an ethical issue and a corporate free speech issue.
Question: In distinguishing being ethical and legal actions of a lender, which of the following is true?
Answer Options: A lender who charges high but legal interest rates has acted both legally and ethically. In some instances, a lender who charges high but legal interest rates has acted unethically. None of the alternatives are correct. As long as a lender is licensed, a lender should be able to charge whatever interest rate borrowers are willing to pay. Correct Answer: In some instances, a lender who charges high but legal interest rates has acted unethically.
Question: If a company does business amorally, it means which of the following?
Answer Options: Operate a completely legal and ethical business. Anything goes in doing business including breaking the law. As long as something is legal, it’s also ethical. Only act ethically in public forums. Correct Answer: As long as something is legal, it’s also ethical.
Question: Which of the following is not an estate planning document? Health care proxy Durable power of attorney An IRA Living will Correct Answer An IRA
Question: What is the difference between beneficiaries and heirs? Beneficiaries are individuals who will receive the decedent’s property if the decedent does not leave a will. Heirs are individuals named in the decedent’s will to receive gifts/devisees. In many instances, since beneficiaries are often the family of the decedent, beneficiaries and heirs may be the same individuals. Beneficiaries and heirs can never be the same individuals. Correct Answer In many instances, since beneficiaries are often the family of the decedent, beneficiaries and heirs may be the same individuals.
Question: You are trolling the courthouse because many who know you took business law want to ask you questions. One such person tells you that she is an executor of an estate and does not know which is the proper court. Your response is which of the following? Probate Court Any court with original jurisdiction Family Court Domestic Court Correct Answer Probate Court
Question: Which of the following is not a right granted under the privileges and immunities clause of the constitution? Traveling from state to state Police protection in a state Employment opportunities in a state In-state tuition at a state college or university Correct Answer Police protection in a state
Question: In applying utilitarianism, which of the following is the first step?
Answer Options: Apply free market principles. Focus on the means to the ends. Identify the important value. Identify the act. Correct Answer: Identify the important value.
Question: A demonstrative devise is which of the following?
Answer Options: A devise payable to a beneficiary from any source either in money or in property. A devise of whatever is left in the estate after paying creditors. A devise of a specific amount from a specific source. A devise of specific property other than money. Correct Answer: A devise of a specific amount from a specific source.
Question: According to Kant, the decision to use environmentally sound more expensive equipment as compared to less expensive environmentally damaging equipment should be based on the following?
Answer Options: All people should be treated as the means. In a free market environment, any decision is proper. Based on the fact that whatever the decision is, it would have little impact. What the result would be if everybody made the same decision. Correct Answer: What the result would be if everybody made the same decision.
Question: Victor E. Lapp dies with no probate estate. There is, however, a revocable trust he created 10 years prior to his death. Which of the following is true?
Answer Options: Victor’s creditors will be able to collect against the trust assets. The trust assets should be treated as probate property. Victor’s creditors will not be able to collect against the trust assets. None of the alternatives are correct. Correct Answer: Victor’s creditors will be able to collect against the trust assets.
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. Correct Answer: Whether or not Louie conforms with all will formalities, the will will not be recognized as being valid.
Question: The role of a registered agent is which of the following?
Answer Options: An officer of the corporation. Acts as the incorporator. A board of director of the corporation. Accept a summons and complaint if a corporation is sued. Correct Answer: Accept a summons and complaint if a corporation is sued.
Question: Guy Baddler is the caregiver of his elderly father. Guy tells his father that unless he leaves Guy his entire estate by will, Guy will not take care of him. Guy’s father does so. Upon Guy’s father’s death, Guy’s two siblings challenge the validity of their father’s will. The probable outcome is which of the following?
Answer Options: The siblings will lose because Guy provided consideration to the father. The siblings will likely succeed on the basis of duress. The siblings will likely lose on the basis of freedom of contract. The siblings will likely succeed on the basis of undue influence. Correct Answer: The siblings will likely succeed on the basis of undue influence.
Question: The significance of the business judgment rule to a member of the board of directors of a corporation is which of the following?
Answer Options: It applies to officers not directors. Has no significance in a shareholder derivative suit. Provides a director unconditional protection for bad decisions. Under certain circumstances, it protects a director from liability for making a bad decision. Correct Answer: Under certain circumstances, it protects a director from liability for making a bad decision.
Question: After executing and signing a will, Asher’s attorney requests two individuals to affirm that Asher told them that he signed his will. Which of the following is true?
Answer Options: The will is valid provided Asher reads the will to the witnesses in its entirety. Since witnesses to a will is optional, the will is valid under any circumstances. The will is valid assuming the witnesses are related to Asher. The will is valid assuming in the state in which Asher lives permits witnesses to affirm the testator’s signature without actually seeing the testator sign the will. Correct Answer: The will is valid assuming in the state in which Asher lives permits witnesses to affirm the testator’s signature without actually seeing the testator sign the will.
Question: Mollie and Miranda own property as joint tenants with right of survivorship. Prior to her death, in her will, Mollie leaves her joint interest to Nick Namy. Which of the following is true?
Answer Options: Because a joint tenancy with right of survivorship is not probate property, it cannot be changed by will, so when Mollie dies, Miranda will receive Mollie’s interest by survivorship. Upon Mollie’s death, the probate judge will force the sale of the property to be divided between Nick and Miranda. Leaving a joint tenancy with right of survivorship interest in a will converts that interest into a tenants in common interest. Since Mollie left the interest to Nick by a will, Nick will assume Mollie’s interest at her death. Correct Answer: Because a joint tenancy with right of survivorship is not probate property, it cannot be changed by will, so when Mollie dies, Miranda will receive Mollie’s interest by survivorship.