Newest WGU D216 – Business Law for Accountants
OA-Style Questions & Answers Grade A+.
1. Which element is required to form a legally binding contract?
A. Social intent
B. Mutual assent
C. Moral obligation
D. Past consideration
Answer: B. Mutual assent
2. Consideration in a contract refers to:
A. Written documentation
B. A promise motivated by goodwill
C. Something of legal value exchanged
D. A benefit received by only one party
Answer: C. Something of legal value exchanged
3. A contract entered into by a minor is generally:
A. Void
B. Voidable at the minor’s option
C. Fully enforceable
D. Illegal
Answer: B. Voidable at the minor’s option
4. Which contract must be in writing under the Statute of Frauds?
A. A contract lasting 6 months
B. A contract for services completed within 1 year
C. A contract for the sale of land
D. A contract for office supplies
,Answer: C. A contract for the sale of land
5. Which type of contract arises from the conduct of the parties rather than
words?
A. Express contract
B. Unilateral contract
C. Implied-in-fact contract
D. Executory contract
Answer: C. Implied-in-fact contract
6. An offer becomes ineffective upon:
A. Acceptance
B. Counteroffer
C. Revocation
D. All of the above
Answer: D. All of the above
7. Which of the following is a defense that makes a contract voidable?
A. Illegality
B. Duress
C. Public policy
D. Lack of legality
Answer: B. Duress
8. Under the UCC, a contract for the sale of goods exists if:
A. Price is fixed
B. Goods are identified
C. Parties intended to make a contract
D. Delivery date is stated
Answer: C. Parties intended to make a contract
,9. Which of the following is NOT a type of damages?
A. Compensatory
B. Punitive
C. Nominal
D. Corrective
Answer: D. Corrective
10. A unilateral contract is accepted by:
A. A promise
B. Performance
C. Writing
D. Consideration
Answer: B. Performance
11. Which business form offers limited liability and pass-through taxation?
A. Sole proprietorship
B. General partnership
C. Limited liability company (LLC)
D. Corporation
Answer: C. Limited liability company (LLC)
12. In a general partnership, partners are:
A. Liable only for their investment
B. Not personally liable
C. Jointly and severally liable
D. Liable only for their own acts
Answer: C. Jointly and severally liable
13. Corporate directors owe shareholders a duty of:
A. Care and loyalty
B. Profit and growth
, C. Disclosure only
D. Obedience only
Answer: A. Care and loyalty
14. Piercing the corporate veil occurs when:
A. A corporation declares bankruptcy
B. Shareholders ignore corporate formalities
C. A corporation pays dividends
D. Officers resign
Answer: B. Shareholders ignore corporate formalities
15. Which agency relationship requires the agent to act on behalf of the
principal?
A. Independent contractor
B. Employee
C. Debtor-creditor
D. Bailment
Answer: B. Employee
16. Apparent authority arises when:
A. The agent acts secretly
B. The principal’s conduct leads a third party to believe authority exists
C. Authority is written
D. The agent exceeds authority
Answer: B. The principal’s conduct leads a third party to believe authority
exists
17. A tort is best defined as:
A. A criminal act
B. A breach of contract
C. A civil wrong causing harm
D. A business agreement
OA-Style Questions & Answers Grade A+.
1. Which element is required to form a legally binding contract?
A. Social intent
B. Mutual assent
C. Moral obligation
D. Past consideration
Answer: B. Mutual assent
2. Consideration in a contract refers to:
A. Written documentation
B. A promise motivated by goodwill
C. Something of legal value exchanged
D. A benefit received by only one party
Answer: C. Something of legal value exchanged
3. A contract entered into by a minor is generally:
A. Void
B. Voidable at the minor’s option
C. Fully enforceable
D. Illegal
Answer: B. Voidable at the minor’s option
4. Which contract must be in writing under the Statute of Frauds?
A. A contract lasting 6 months
B. A contract for services completed within 1 year
C. A contract for the sale of land
D. A contract for office supplies
,Answer: C. A contract for the sale of land
5. Which type of contract arises from the conduct of the parties rather than
words?
A. Express contract
B. Unilateral contract
C. Implied-in-fact contract
D. Executory contract
Answer: C. Implied-in-fact contract
6. An offer becomes ineffective upon:
A. Acceptance
B. Counteroffer
C. Revocation
D. All of the above
Answer: D. All of the above
7. Which of the following is a defense that makes a contract voidable?
A. Illegality
B. Duress
C. Public policy
D. Lack of legality
Answer: B. Duress
8. Under the UCC, a contract for the sale of goods exists if:
A. Price is fixed
B. Goods are identified
C. Parties intended to make a contract
D. Delivery date is stated
Answer: C. Parties intended to make a contract
,9. Which of the following is NOT a type of damages?
A. Compensatory
B. Punitive
C. Nominal
D. Corrective
Answer: D. Corrective
10. A unilateral contract is accepted by:
A. A promise
B. Performance
C. Writing
D. Consideration
Answer: B. Performance
11. Which business form offers limited liability and pass-through taxation?
A. Sole proprietorship
B. General partnership
C. Limited liability company (LLC)
D. Corporation
Answer: C. Limited liability company (LLC)
12. In a general partnership, partners are:
A. Liable only for their investment
B. Not personally liable
C. Jointly and severally liable
D. Liable only for their own acts
Answer: C. Jointly and severally liable
13. Corporate directors owe shareholders a duty of:
A. Care and loyalty
B. Profit and growth
, C. Disclosure only
D. Obedience only
Answer: A. Care and loyalty
14. Piercing the corporate veil occurs when:
A. A corporation declares bankruptcy
B. Shareholders ignore corporate formalities
C. A corporation pays dividends
D. Officers resign
Answer: B. Shareholders ignore corporate formalities
15. Which agency relationship requires the agent to act on behalf of the
principal?
A. Independent contractor
B. Employee
C. Debtor-creditor
D. Bailment
Answer: B. Employee
16. Apparent authority arises when:
A. The agent acts secretly
B. The principal’s conduct leads a third party to believe authority exists
C. Authority is written
D. The agent exceeds authority
Answer: B. The principal’s conduct leads a third party to believe authority
exists
17. A tort is best defined as:
A. A criminal act
B. A breach of contract
C. A civil wrong causing harm
D. A business agreement
