LGS 200 CORRECT EXAMS QUESTIONS AND
ANSWERS SURE A+
✔✔Which of the following is NOT a recognized theory of the social responsibility of
business?
corporate dissolution
moral minimum
stakeholder interest
corporate citizenship
maximize profits - ✔✔corporate dissolution
✔✔Section 406 of the Sarbanes-Oxley Act requires a _____ company to disclose
whether it has adopted a code of ethics for its _____.
public; rank-and-file employees
private; senior financial officers
closely held; rank-and-file employees
public; senior financial officers
closely held; senior financial officers - ✔✔public; senior financial officers
✔✔Under the _____ theory of social responsibility, corporations owe a duty to subsidize
schools and help educate children.
corporate dissolution
maximize profits
Friedman
corporate citizenship
moral minimum - ✔✔corporate citizenship
✔✔Which of the following is not an example of a specific public benefit purpose that a B
corporation might consider when making corporate decisions?
, - contribute to charitable causes
- purchase sustainably produced raw materials
- ensure employment opportunities for children of the executives and board of directors
- provide employment opportunities for released felons
- reduce the company's carbon footprint - ✔✔ensure employment opportunities for
children of the executives and board of directors
✔✔Which of the following is NOT an accurate statement about public benefit
corporations?
- Benefit corporations are sometimes referred to as mission-driven businesses and
social purpose corporations.
- A benefit corporation's stated purpose is to create general-public benefits. This
includes considering social issues and protecting the environment.
- Unlike traditional corporations, where the shareholder is the main stakeholder, B corps
by law allow directors and officers to consider other stakeholders in making corporate
decisions.
- Most states that have enacted legislation permitting specific public benefit purpose
corporations prohibit them from considering shareholder interests that conflict with their
specific public benefit purpose.
- A benefit corporation is a for-profit corporation, but with missions additional to the pure
profit motive. - ✔✔Most states that have enacted legislation permitting specific public
benefit purpose corporations prohibit them from considering shareholder interests that
conflict with their specific public benefit purpose.
✔✔Most state court systems include all of the following EXCEPT __________.
- general-jurisdiction trial courts
- highest state court
- intermediate appellate courts
- limited-jurisdiction trial courts
- special-jurisdiction federal district courts - ✔✔special-jurisdiction federal district courts
✔✔Which of the following is an INCORRECT statement regarding small claims courts?
- Generally, the parties cannot have lawyers represent them.
- Many states have created small claims courts to hear civil cases involving small dollar
amounts.
- Generally, the parties have lawyers represent them in small claims court.
- The decisions of small claims courts are often appealable.
ANSWERS SURE A+
✔✔Which of the following is NOT a recognized theory of the social responsibility of
business?
corporate dissolution
moral minimum
stakeholder interest
corporate citizenship
maximize profits - ✔✔corporate dissolution
✔✔Section 406 of the Sarbanes-Oxley Act requires a _____ company to disclose
whether it has adopted a code of ethics for its _____.
public; rank-and-file employees
private; senior financial officers
closely held; rank-and-file employees
public; senior financial officers
closely held; senior financial officers - ✔✔public; senior financial officers
✔✔Under the _____ theory of social responsibility, corporations owe a duty to subsidize
schools and help educate children.
corporate dissolution
maximize profits
Friedman
corporate citizenship
moral minimum - ✔✔corporate citizenship
✔✔Which of the following is not an example of a specific public benefit purpose that a B
corporation might consider when making corporate decisions?
, - contribute to charitable causes
- purchase sustainably produced raw materials
- ensure employment opportunities for children of the executives and board of directors
- provide employment opportunities for released felons
- reduce the company's carbon footprint - ✔✔ensure employment opportunities for
children of the executives and board of directors
✔✔Which of the following is NOT an accurate statement about public benefit
corporations?
- Benefit corporations are sometimes referred to as mission-driven businesses and
social purpose corporations.
- A benefit corporation's stated purpose is to create general-public benefits. This
includes considering social issues and protecting the environment.
- Unlike traditional corporations, where the shareholder is the main stakeholder, B corps
by law allow directors and officers to consider other stakeholders in making corporate
decisions.
- Most states that have enacted legislation permitting specific public benefit purpose
corporations prohibit them from considering shareholder interests that conflict with their
specific public benefit purpose.
- A benefit corporation is a for-profit corporation, but with missions additional to the pure
profit motive. - ✔✔Most states that have enacted legislation permitting specific public
benefit purpose corporations prohibit them from considering shareholder interests that
conflict with their specific public benefit purpose.
✔✔Most state court systems include all of the following EXCEPT __________.
- general-jurisdiction trial courts
- highest state court
- intermediate appellate courts
- limited-jurisdiction trial courts
- special-jurisdiction federal district courts - ✔✔special-jurisdiction federal district courts
✔✔Which of the following is an INCORRECT statement regarding small claims courts?
- Generally, the parties cannot have lawyers represent them.
- Many states have created small claims courts to hear civil cases involving small dollar
amounts.
- Generally, the parties have lawyers represent them in small claims court.
- The decisions of small claims courts are often appealable.
