LEV3701 UPDATED ACTUAL TEST
QUESTIONS AND VERIFIED ANSWERS
BUNDLE
●● rule of law
Answer: helps reduce "transaction costs"; there's certainty &
predictability; laws are generally and equally applied; no one's above the
law, law isn't perfect
●● advantages of law
Answer: law is specifically designed in a way that we can use to our adv
(ex: intellectual property, tax incentives)
●● compliance in law
Answer: use compliance as a selling point (HIPAA compliant texting
app)
●● strong Rule of law =
Answer: good economy
●● property
,Answer: NOT the same as resources (things); the right to possess
resources and shield from others; right to property = basis for a private
market and modern business
●● common law vs. civil law
Answer: -judge made; case made
stare decisis: let the prior decision stand
VS
heavily focused on legislature; little interpretation of law
●● Criminal vs. Civil Law
Answer: state v defendant
VS
plaintiff vs defendant
●● intangible property rights
Answer: freedom of speech, religion, etc.
●● downsides to the rule of law
,Answer: 1. potential high financial cost of compliance (big v little
companies)
2. changing nature of laws (technology, politics, morals)
3. non-uniformity in laws between states/federal/local
●● Hierarchy of Law
Answer: us constitution and amendments
federal statutes
federal regulations
state constitutions
state statutes
state regulations
local ordinances
case law
●● corporations
Answer: -personhood by way of legal fiction
-owned by shareholders
-larger companies may have board of directors
●● specific sense of Corporate Governance
Answer: -rules that protect the property interest that owners have in the
biz
, -try to prevent ppl inside company from abusing their positions for
personal advantage to detriment of the owners
-ethical & legal are NOT same thing
●● General sense of corporate governance
Answer: -expand CoGo to include responsibility of company to
customers/vendors/society/etc.
-this is a huge focus for companies (diversity, environmental
sustainability, etc.)
●● constitution
Answer: replaced articles of fed which was...
strong sovereignty of the states; weak fed govt; concern over economic
issues (states could impose protectionist measures hurting other states)
●● came together for compromises between...
Answer: -branches of govt
-state and federal authorities
-state v state
-people & govt
-freedom & justice
●● separation of powers
QUESTIONS AND VERIFIED ANSWERS
BUNDLE
●● rule of law
Answer: helps reduce "transaction costs"; there's certainty &
predictability; laws are generally and equally applied; no one's above the
law, law isn't perfect
●● advantages of law
Answer: law is specifically designed in a way that we can use to our adv
(ex: intellectual property, tax incentives)
●● compliance in law
Answer: use compliance as a selling point (HIPAA compliant texting
app)
●● strong Rule of law =
Answer: good economy
●● property
,Answer: NOT the same as resources (things); the right to possess
resources and shield from others; right to property = basis for a private
market and modern business
●● common law vs. civil law
Answer: -judge made; case made
stare decisis: let the prior decision stand
VS
heavily focused on legislature; little interpretation of law
●● Criminal vs. Civil Law
Answer: state v defendant
VS
plaintiff vs defendant
●● intangible property rights
Answer: freedom of speech, religion, etc.
●● downsides to the rule of law
,Answer: 1. potential high financial cost of compliance (big v little
companies)
2. changing nature of laws (technology, politics, morals)
3. non-uniformity in laws between states/federal/local
●● Hierarchy of Law
Answer: us constitution and amendments
federal statutes
federal regulations
state constitutions
state statutes
state regulations
local ordinances
case law
●● corporations
Answer: -personhood by way of legal fiction
-owned by shareholders
-larger companies may have board of directors
●● specific sense of Corporate Governance
Answer: -rules that protect the property interest that owners have in the
biz
, -try to prevent ppl inside company from abusing their positions for
personal advantage to detriment of the owners
-ethical & legal are NOT same thing
●● General sense of corporate governance
Answer: -expand CoGo to include responsibility of company to
customers/vendors/society/etc.
-this is a huge focus for companies (diversity, environmental
sustainability, etc.)
●● constitution
Answer: replaced articles of fed which was...
strong sovereignty of the states; weak fed govt; concern over economic
issues (states could impose protectionist measures hurting other states)
●● came together for compromises between...
Answer: -branches of govt
-state and federal authorities
-state v state
-people & govt
-freedom & justice
●● separation of powers
