Multiple Choice Questions

Bussinus Law

1.An employer is allowed to intercept and monitor all communications made on electronic devices by employees during business hours

True/false.

2. Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result.

True/false

3. Sexual harassment occurs when a pattern of sexually offensive conduct permeates a workplace sufficiently to create an abusive environment.

True/false

4. Compliance with Title VII of the Civil Rights Act is monitored by

A.a protected class

B.businesses affected by interstate commerce.

C.state and local governing agencies.

D.the Equal Employment Opportunity Commission.

5.The proprietor’s opportunity to raise capital for a sole proprietorship is limited.

true/false

6.Pipe Inc.’s stated purpose is to install plumbing. Pipe contracts with Quality Contracting to pour a new building’s foundation

despite lacking the skill and license to do such work. This is most likely

A.an ultra vires act.

B.within the corporation’s express powers.

C.within the corporation’s implied powers

D.allowable and proper as an act to profit corporate shareholders.

7.The doctrine of respondeat superior applies to corporations in the same way as it applies to other agency relationships.

True/false

8.Insider trading occurs when persons buy or sell securities on the basis of information that is notavailable to the public.

True/false

9.Like other corporations, Social Media Inc. can extend its operations by

A.liquidating its assets.

B.purchasing the assets of another corporation.

C.firing employees

D.distributing retained earnings to shareholders.

10. A mechanic’s lien normally takes priority over perfected security interests in the property.

true/false

11.Kelly’s Autos Inc. borrows funds from Lenders Finance Company under a security agreement. Later, Kelly’s buys new vehicles to add to its inventory. Lenders has a security interest in the new vehicles

A.if the security agreement included an after-acquired property clause.

B.if Lenders has not yet filed a financing statement.

C.if Kelly’s bought the new vehicles with Lenders’ funds.

D.none of the choices.

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