LES 305 Exam 3 Study Questions well answered to pass, Exams of Nursing

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LES 305 Exam 3 Study Questions well

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Gwendolyn Melvin wishes to start a children's sports store called, "Just Let 'Em Play!" as a sole proprietor. What form must she file so that she can use another name than her own?

• DBA certificate
• Disclosure statement
• UCC-1 statement
• Name certificate - correct answer ✔✔DBA certificate Which of the following does not require a duty of care or good faith to other principals?
• A general partnership
• A family limited partnership
• A sole proprietorship
• A limited partnership - correct answer ✔✔A sole proprietorship The doctrine that allows a creditor to seek recovery from the purchaser of assets even when the purchaser did not expressly assume such liabilities as part of the purchase is called:
• Joint and several liability
• Unlimited liability
• Successor liability
• Contributory liability - correct answer ✔✔Successor liability A sole proprietorship is liable:

• Not liable for the debt of the business
• For all the debts of the business
• For what the courts determine as fair and just repayment of the debts of the business
• Only up to half the debts of the business - correct answer ✔✔For all the debts of the business Jed wants to pass his sole proprietorship on to his son Luke in his will. Can he do this?
• No
• Yes
• No, unless the court can prove that Luke is in the best position to run the business
• Yes if the court finds no other heirs exist - correct answer ✔✔No Which of the following requires a formal filing to be recognized as a valid business entity?
• A sole proprietorship
• All business entities
• A limited partnership
• A general partnership - correct answer ✔✔A limited partnership Currently, LLPs are often used to protect family businesses as they provide a way to resolve:
• Issues regarding transition from one generation to another
• Management disputes
• Capitalization disputes
• Issues of family fiduciary duties and rights to represent and bind the business - correct answer ✔✔Issues regarding transition from one generation to another In a general partnership:

• An unequal split of profits may be agreed to based on the partnership agreement, but losses must be split equally
• Profits and losses must be split equally among the partners
• Profits must be split equally, but losses may be split unequally based on the partnership agreement
• Profits and losses may be unequally split based on the partnership agreement - correct answer ✔✔Profits and losses may be unequally split based on the partnership agreement A responsibility to act in the best interests of a partnership by the partners is called a
• Legal duty
• Fiduciary duty
• Ethical duty
• Moral duty - correct answer ✔✔Fiduciary duty The origins of LLP's were rooted in protection of:
• Professional service firm partnerships
• Professional service firm sole proprietorships
• Private service firm partnerships
• Private service firm sole proprietorships - correct answer ✔✔Professional service firm partnerships LLCs were originally created by the:
• California legislature
• New York legislature
• Deleware legislature
• Wyoming legislature - correct answer ✔✔Wyoming legislature After the ULLCA was created, some states have started to adopt an act that modifies it called:

• Reform Limited Company Act
• Revised Uniform Limited Liability Company Act
• Revised Limited Company Formation Act
• Reformed Limited Liability Corporation Act - correct answer ✔✔Revised Uniform Limited Liability Company Act LLCs were originally created in the Wyoming legislature in:
• 1929
• 2002
• 1894
• 1977 - correct answer ✔✔ 1977 The operating agreement must determine if the LLC is a member-managed LLC or a manager-managed LLC so that third parties can:
• Determine what the tax consequences each member will face at the end of the fiscal year
• Determine who has the authority to make day to day decisions that bind the LLC
• Determine the financial stability of the LLC
• Determine who has unlimited liability - correct answer ✔✔Determine who has the authority to make day to day decisions that bind the LLC When the LLC is insolvent, any distribution of money made will be called:
• Improper distribution
• Fiduciary distribution
• Equitable distribution
• Financial distribution - correct answer ✔✔Fiduciary distribution

A corporation comes into existence when:

• The officers are chosen
• The board adopts the bylaws
• The state accepts the articles of incorporation and issues the charter
• The organizational meeting has commenced - correct answer ✔✔The state accepts the articles of incorporation and issues the charter A person who performs pre-incorporation duties on behalf of the forming corporation is called a
• Promoter
• Incorporator
• Principal
• Venture Capitalist - correct answer ✔✔Promoter Which group of a corporation is responsible for running the day to day matters of the corporation?
• Shareholders
• Principals
• Officers
• Board Members - correct answer ✔✔Officers Which of the following statements is incorrect?
• A corporation may file suit in its own name without the principals filing suit
• A corporation may not incur obligations separate from those of its principals
• A corporation may form a contract in its own name without the principals guaranteeing the contract
• A corporation can be sued without the principals being sued - correct answer ✔✔A corporation may not incur obligations separate from those of its principals

Which of the following is NOT a factor used by courts to determine whether to pierce the corporate veil?

• Failure to follow necessary corporate formalities
• Inadequate capitalization
• Poor management and decision making by an inadequately trained or educated manager
• Evidence of fraud or willful misconduct - correct answer ✔✔Poor management and decision making by an inadequately trained or educated manager Morton lends money as a business loan to Luisa, who is capitalizing her start-up sole proprietorship named Luisa's Things. If Morton must sue for repayment, he would sue:
• No one, since the loan makes him a partner
• Luisa
• Luisa and Luisa's Things
• Luisa's Things - correct answer ✔✔Luisa Han wants to start a personal training business. He should choose a sole proprietorship entity if he seeks:
• The ability to avoid management conflict
• Limited liability
• Perpetual existence for the new company
• The ability to raise capital by selling equity in the business - correct answer ✔✔The ability to avoid management conflict In Waddell vs. Rustin, the court determined:
• The business was not a partnership because all partnerships must have some written agreement to be considered a partnership

• That no implied partnership existed as that the prosperity of the business was not due to the equal contribution of two parties
• An express partnership existed because one man acknowledged that the other man did provide a valuable service for his business
• An implied partnership did occur because the reasonable person would assume two brothers would be partners - correct answer ✔✔That no implied partnership existed as that the prosperity of the business was not due to the equal contribution of two parties Boris, Carina, and Theo have decided to go into business as a limited partnership. Boris and Carina will manage the business, and Theo will have no role in the day-to-day operations. Alina, a customer, contracts a rare disease and sues. Alina is awarded a judgment for $5 million. After she exhausts the assets of the partnership, having the property and building sold, and seizing all other property, $3 million remains unpaid.
• Boris and Carina each owe $3 million jointly and severally, so Alina may sue one or both of them, Theo has no additional liability
• Boris and Carina each owe $1.5 million, and Alina must sue each for his or her part, Theo has no additional liability
• Boris, Carina, and Theo each owe $3 million jointly and severally, so Alina may sue one, two, or all three for the $3 million balance
• Boris, Carina, and Theo each owe $1 million, and Alina must sue each for his or her part - correct answer ✔✔Boris and Carina each owe $3 million jointly and severally, so Alina may sue one or both of them, Theo has no additional liability To date, how many states in the US have adopted all or substantial portions of the Revised Uniform Partnership Act?
• About 25 percent of the states, 13 states
• About half, 25 states
• About 80 percent, 40 states
• All 50 states - correct answer ✔✔About 80 percent, 40 states Frank wants to leave his partnership and wants to stop being a principal. What is this process called?

• Deduction
• Dissolution
• Dissociation
• Detachment - correct answer ✔✔Dissociation Brayden is a general partner in a four-member limited partnership with two general and two limited partners. The partnership is silent with regard to the duration of the partnership, and Brayden wishes to retire.
• The other general partner and the limited partner with the largest liability must agree to his withdrawal
• Brayden must give six months' notice before being permitted to withdraw
• The court must grant permission for Brayden to withdraw since the agreement was silent and the other partners and 3rd party customers of the partnership must be protected
• Brayden may withdraw at any time, and the partnership continues - correct answer ✔✔Brayden may withdraw at any time, and the partnership continues The ability to flow through to the investors the tax deductions and losses that are typically generated by an emerging company or a company with significant up-front debt is an advantage of a:
• Corporate tax structure
• Member-managed LLC
• Pass-through entity
• Manager-managed LLC - correct answer ✔✔Pass-through entity The ability to distribute earnings without incurring double-level taxation is an advantage of a:
• Corporate tax structure
• Manager-managed LLC
• Pass-through entity
• Member-managed LLC - correct answer ✔✔Pass-through entity

All of the following are generally required to be included in the articles of organization except:

• The names of the owners
• The bylaws of the LLC
• The location of its principal place of business
• Name of the LLC - correct answer ✔✔The bylaws of the LLC Which statement is accurate about Delaware as it relates to taxation treatment of out of state corporations that incorporate in Delaware?
• Unless they sell products and services in Delaware, they may not benefit at all from Delaware tax treatment
• They face no taxes
• They face very favorable tax treatment
• Delaware does not allow double taxation of corporations - correct answer ✔✔Unless they sell products and services in Delaware, they may not benefit at all from Delaware tax treatment What is an advantage of a Subchapter S corporation that a standard corporation does not have?
• It is inexpensive and easy to start up and run
• It does not have any filing requirement
• It does not face double taxation
• The board does not have any fiduciary duties - correct answer ✔✔It does not face double taxation Jeff files the articles of incorporation to start BluSky Inc. What will be the next step?
• The court will declare the corporate existence
• The shareholders will create the bylaws
• The principals will hold an organizational meeting to resolve any pending issues

• Sell shares of stocks on the New York Stock Exchange - correct answer ✔✔The principals will hold an organizational meeting to resolve any pending issues A corporation formed to maintain a charitable operation is called a:
• Subchapter S corporation
• Nonprofit corporation
• Public corporation
• Closely held corporation - correct answer ✔✔Nonprofit corporation Within five months of the Troubled Assets Relief Program law executive compensation mandates, approximately __________ banks were approved to pay back the TARP funds.
• 13
• 30
• 34
• 2 - correct answer ✔✔ 34 Rules mandated by Dodd-Frank require companies to disclosure their ________ structure in their SEC filings
• Past wrongdoing
• Corporate payout
• Board leadership
• All of the choices are correct - correct answer ✔✔Board leadership The Sarbanes-Oxley Act makes key ________ officers more accountable for financial reporting by requiring that chief executive officers and chief financial officers personally certify the accuracy of all required SEC filings:

• Preemptory
• Registered
• Local
• Corporate - correct answer ✔✔Corporate The U.S. Supreme Court _______ the lower court's decision and ruled in favor of Digital Reality:
• Reversed
• Affirmed
• Itemized
• Investigated - correct answer ✔✔Reversed While substantial portions of the Sarbanes-Oxley Act are aimed at solving specific mechanism failures in auditing and other accounting procedures, the law also imposes higher levels of __________ responsibility for those involved in corporate governance:
• Proxy
• Fiduciary
• Administrative
• None of the choices are correct - correct answer ✔✔Fiduciary The Sarbanes-Oxley Act gives the SEC the authority to intervene in any _______ payments made by a company that may be the subject of an SEC investigation:
• Obligatory
• Nominal
• Extraordinary
• Offered - correct answer ✔✔Extraordinary

The restrictions imposed on residents of the Troubled Assets Relief Program (TARP) have several recipients to repay the funds:

• As soon as possible
• Whenever possible
• Within 3 months
• No longer than a year - correct answer ✔✔As soon as possible What, if any, federal statutes give specific anti-retaliation protections for employees who disclose conduct that violates that law?
• Sarbanes-Oxley Act
• Fair Labor Standards Act
• All of the choices are correct - correct answer ✔✔All of the choices are correct While some employment agreements are contracts between managers and a business entity, some contracts give rights to __________ employees as well:
• Non-Management
• Obedient
• Principal
• None of the choices are correct - correct answer ✔✔Non-Management ______ states and the District of Colombia have created statutes that provide an incentive to report fraud involving state-funded programs
• Nineteen
• Thirty
• Twenty-five
• Twenty-seven - correct answer ✔✔Thirty

Federal employees are protected from whistleblowing by the _____________:

• Cessation of Retaliation Act of 1990
• Protect the Whistleblower Act of 1985
• Whistleblower Retaliation Act of 1988
• Whistleblower Protection Act of 1989 - correct answer ✔✔Whistleblower Protection Act of 1989 Which state does not recognize the common law exceptions of the employment-at-will rule on employees?
• Wisconsin
• Florida
• Illinois
• Iowa - correct answer ✔✔Florida In McQueary vs The Pennsylvania State University, the court:
• Reversed the case for extensive findings
• Remanded the case to another court
• Ruled in favor of McQueary
• Ruled in favor of Penn State - correct answer ✔✔Ruled in favor of McQueary Affirmative action in employment began in __________ when President Franklin D. Roosevelt issued an executive order banning racial, religious, and gender discrimination in the defense industry:
• World War I
• Vietnam War
• The Battle of the Marne

• World War II - correct answer ✔✔World War II Which of the following would likely not be considered a major life activity supporting a disability claim?
• Thinking and reasoning
• Speaking
• Being able to sit for long periods
• Proficiency in typing - correct answer ✔✔Proficiency in typing State licensing statutes and regulations compel workers to _________ in order to legally work in a licensed profession:
• Pay a fee
• Complete a training program
• Pass an exam
• All of the choices are correct - correct answer ✔✔All of the choices are correct Kim, a CPA, works for a small accounting firm consisting of two managing partners, six accountants, and four secretaries. During a skiing vacation, Kim has a serious fall and is paralyzed from the waist down. While she cannot walk, her mind is not affected and she is 100 percent capable of performing her accounting duties. She has asked the firm to widen the aisles between cubicles so that she can maneuver her wheelchair and to provide a special desk that is wheelchair friendly. These accommodations would cost less than $1,000.
• Since she can still do her job, she is not deemed to have suffered a limitation to a major life activity
• The company is not required to make or offer any accommodations to Kim
• Under provisions of ADA, her requests should not be granted because they are not reasonable
• Under provisions of ADA, her requests should be granted because they are reasonable - correct answer ✔✔The company is not required to make or offer any accommodations to Kim Aranda works in an office environment with 50 employees. Once or twice a week, her boss Alden tells her she has great legs and that she should wear shorter skirts. He also tells her to let loose and open

another button on her blouse once in a while. She asks him to stop and continues to wear knee-length skirts and keep her blouse buttoned to the neck. He never touches her and he never makes these comments when someone else can hear. When she gets her performance appraisal from Alden, he gives her an excellent evaluation and a raise. After listening to Alden for six months, she files a complaint with the EEOC.

• She may have a valid quid pro quo claim
• She may have a valid hostile environment claim
• She may choose either a valid quid pro claim or a hostile environment claim, as both are valid
• She has suffered no economic or other job detriment, so she has no cause of action - correct answer ✔✔She may have a valid hostile environment claim In Enriquez vs West Jersey Health Systems, the plaintiff began an external transformation from male to female. When her contract was not removed, she brought suit claiming discrimination:
• Although there was a New Jersey law protecting Enriquez, because the federal law at that time excluded the plaintiff the state law was deemed preempted and couldn't be enforced
• The plaintiff was not entitled to protection under federal law at the time, but was protected by New Jersey state law
• Changing sex or changing sexual appearance is not intended to be covered by law, so Enriquez did not have a valid suit
• The discomfort of the majority of the plaintiff's coworkers outweighed any rights that the plaintiff might have, because the majority should be able to dictate policy - correct answer ✔✔The plaintiff was not entitled to protection under federal law at the time, but was protected by New Jersey state law Alessia has refereed high school and women's college soccer for 10 years. She is fit, knows the rules without question, and has always received excellent evaluations. When she applies to referee men's college games, the men's college referee administrator tells her that he can't use her because women won't get the players' respect and because the game looks more serious and acceptable with men refereeing. Alessia is the victim of:
• Disparate treatment discrimination
• Pretexual discrimination
• Disparate impact discrimination

• Mixed motives discrimination - correct answer ✔✔Disparate treatment discrimination Dodd-Frank requires employees to adopt a __________ policy through a non-binding resolution in their proxy statements asking shareholders whether they approve the compensation or any severance agreement provision (golden parachute) for their executive management:
• "Trade-on-pay"
• "Say-on-pay"
• "Pay-on-say"
• "Pay-on-trade" - correct answer ✔✔"Say-on-pay" In __________, the SEC issued a rule required by the Dodd-Frank Act that requires a company to disclose (1) the median of the annual total compensation of all its employees except the CEO, (2) the annual total compensation of its CEO, and (3) the ratio of those two amounts.
• 2012
• 2015
• 2017
• 2016 - correct answer ✔✔ 2015 The Dodd-Frank whistleblower provisions are based on a __________ plan:
• Contemplation
• Bounty
• Lookback
• Clawback - correct answer ✔✔Bounty Congress replaced the __________ industry's self-regulation of auditing with a new federal agency called the Public Company Accounting Oversight Board:

• Trading
• Investing
• Accounting
• None of the choices are correct - correct answer ✔✔Accounting In June 2002, Arthur Andersen was convicted of the obstruction charges, sentenced to pay a __________ fine, and banned from performing audits for publicly traded companies:
• $400,
• $350,
• $200,
• $500,000 - correct answer ✔✔$500, The Sarbanes-Oxley Act seeks to increase _______ independence
• Industry standard
• Trade
• Auditor
• None of the choices are correct - correct answer ✔✔Auditor Through the Dodd-Frank Wall Street Reform and Consumer Protection Act, also known simply as Dodd- Frank, Congress imposed tighter restrictions on:
• Public corporations
• Financial markets
• Conduct of firms engaging in risky investment transactions
• All of the choices are correct - correct answer ✔✔All of the choices are correct In Wurtz vs. Beecher Metro District, the court ruled:

• Ruled in favor of the District
• Ruled in favor of Wurtz
• Remanded the case
• None of the choices are correct - correct answer ✔✔- Ruled in favor of the District The covenant of _________ and fair dealing, adopted by a minority of states, represents a significantly different approach to the traditional notions of an employment-at-will relationship:
• Absolute disclosure
• Good faith
• Full disclosure
• None of the choices are correct - correct answer ✔✔Good faith Courts will consider the public policy objective to be explicit and well established if it is related to:
• Previously existing policy
• An existing statute
• The state constitution
• All of the choices are correct - correct answer ✔✔All of the choices are correct In McQueary vs The Pennsylvania State University, what proceeding led up to McQueary being fired?
• Grand jury testimony
• Misrepresentation lawsuit
• A civil complaint against him
• All of the choices are correct - correct answer ✔✔Grand jury testimony

A ________ is a person who reports illegal conduct committed by employees, directors, and executives of a company

• Whistleblower
• Whistleperson
• Snitch Factor
• None of the choices are correct - correct answer ✔✔Whistleblower One of the most _________ issues under affirmative action involves quotas:
• Misrepresented
• Obvious
• Misunderstood
• None of the choices are correct - correct answer ✔✔Misunderstood Once the plaintiff has established a prima facie case under the McDonnell Douglas standard and the defendant has presented justification for the actions taken, the plaintiff must now prove any of the following except:
• The stated reasons contain a mixed motive
• The stated reasons were insufficient to explain the defendant's actions
• The stated reasons were not the true and accurate reasons
• The defendant's stated reasons had no basis in fact - correct answer ✔✔The stated reasons contain a mixed motive Under the term employment discrimination, what is/are considered workplace-related discrimination?
• Disciplinary action
• The hiring process
• Treatment of employees and their work schedules

• All of the choices are correct - correct answer ✔✔All of the choices are correct Martina and Dryson have applied for teaching positions in your school's accounting department. Martina is a recent graduate with her PhD in accounting and one published paper. She has no teaching experience except for classes taught as a teaching assistant during her PhD program. Dryson also has a PhD in accounting and has been teaching for five years at a major university. He has eight published papers. Both are hired as tenure track assistant professors. When Martina later discovers that Dryson's salary is $10,000 higher than hers, she is furious and files suit under the Equal Pay Act. Will she be successful?
• No, because she is not a minority eligible for EPA protections
• Yes, she is being paid less to do the exact same job
• Yes, Dryson's additional experience cannot be considered under the Equal Pay Act
• No, because Dryson is being paid a different salary based on factors other than sex. - correct answer ✔✔No, because Dryson is being paid a different salary based on factors other than sex.