Assessment 2nd Attempt UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Most Common type of business entity - CORRECT ANSWER - Sole Proprietorship
Where can a Corporation be sued? - CORRECT ANSWER - Place of incorporation and
primary place of business
What are 3 components of corporations? - CORRECT ANSWER - Stockholders,
Directors, and Officers
What is the role of Board of Directors? - CORRECT ANSWER - Set goals, hire officers,
oversee operations and finances
What are some advantages of Corporations? - CORRECT ANSWER - Limited liability
from owners, ease of transferring ownership, certain tax deductions, ability to attract financing
What is the purpose of Joint Ventures? - CORRECT ANSWER - 2 or more companies
that form an alliance for specific period of time.
What does FTC oversee? - CORRECT ANSWER - Oversees unfair business practices.
What major case involves the commerce clause and what does it mean? - CORRECT
ANSWER - Regulates state and international business and limits the states powers.
"NLRB vs. Steel Corp."
What are some circumstances that revolve around the 14th amendment? - CORRECT
ANSWER - Warrantless searches
, What was the purpose for the UN - CORRECT ANSWER - Developed as a multilateral
treaty to create peace and equality for women and children
What is a Ponzi/Scheme? - CORRECT ANSWER - A payment of investment into a non
existent firm from new investors to older investors; and the process repeats
What are the 2x types of defamation and explain them? - CORRECT ANSWER -
Slander-spoken negative remarks about and individual or business; Libel- written negative
remarks about and individual or business
What is promissory estoppel? - CORRECT ANSWER - Within contract law, promissory
estoppel refers to the doctrine that a party may recover on the basis of a promise made when the
party's reliance on that promise was reasonable, and the party attempting to recover detrimentally
relied on the promise.
What is a material breach of contract? - CORRECT ANSWER - When something is
promised and the complete opposite is done.
What is the purpose of the NLRB? - CORRECT ANSWER - independent federal agency
that protects the rights of private sector employees to join together, with or without a union, to
improve their wages and working conditions.
What is a closed shop? - CORRECT ANSWER - When you can't gain employment if you
are not apart of the union
What is the difference between disparate treatment and disparate impact? - CORRECT
ANSWER - Disparate is unintentionally discrimination
FTC mainly focuses on? - CORRECT ANSWER - Regulating business competition; fair
and misleading practices