Pre-Assessment: HR Compliance and
Employee Relations D432 Exam 2026
Questions and Answers
Which description is a characteristic of a corporation? - Correct answer-Ease of
transferring ownership
Which description is characteristic of a sole proprietorship? - Correct answer-Ease
of dissolution
.
Which act prohibits unfair or deceptive acts affecting commerce? - Correct answer-
The Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant
(CPA) not affiliated with the company to provide an objective opinion. Which form
should the company use for this report? - Correct answer-Form 10-K
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,A U.S. company operating in Country I has detected instances of child labor in one
of their manufacturing facilities abroad. What is the reason for this occurrence? -
Correct answer-Local governments are sometimes unwilling or unable to enforce
laws and regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the
product. The FTC sends the company a consent order. What is the objective of the
consent order? - Correct answer-To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect consumers against
unfair trade practices? - Correct answer-By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they
had to buy a phone plan at a 100% inflated price to be eligible for the offer.Which
unfair trade practice did the store adopt? - Correct answer-Misleading price
information
A consumer approached a shop to purchase edible oil and enquire about its
ingredients before making a final purchase. A seller did not disclose the ingredients
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, of an edible product before accepting payment for it.Which unfair trade practice
did the seller adopt? - Correct answer-Failing to disclose pertinent information
What is used to measure the sustainability of an organization's social responsibility
efforts? - Correct answer-Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a
direct benefit that the company will have due to this practice? - Correct answer-
Positive benevolent halo effect
An employee at a company arrives consistently late. The employee's manager
checks the company policy about tardiness. The policy states that employees who
arrive late may be subject to disciplinary action, up to and including termination.
The manager also remembers hearing another employee being verbally warned
about a similar situation.What should be the first action by the manager? - Correct
answer-Consult with HR.
One of a company's items has been in production for six months but is still sold
stating "new." Which unfair practice is the company engaged in, according to the
Federal Trade Commission Act? - Correct answer-Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees
in the year 2014. In 2015, the CEO of the company took a pay cut to raise
employee salaries. This led the employees to stay and work hard to achieve the
©C0PYRIGHT 2025, ALL RIGHTS RESERVED 3
Employee Relations D432 Exam 2026
Questions and Answers
Which description is a characteristic of a corporation? - Correct answer-Ease of
transferring ownership
Which description is characteristic of a sole proprietorship? - Correct answer-Ease
of dissolution
.
Which act prohibits unfair or deceptive acts affecting commerce? - Correct answer-
The Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant
(CPA) not affiliated with the company to provide an objective opinion. Which form
should the company use for this report? - Correct answer-Form 10-K
©C0PYRIGHT 2025, ALL RIGHTS RESERVED 1
,A U.S. company operating in Country I has detected instances of child labor in one
of their manufacturing facilities abroad. What is the reason for this occurrence? -
Correct answer-Local governments are sometimes unwilling or unable to enforce
laws and regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the
product. The FTC sends the company a consent order. What is the objective of the
consent order? - Correct answer-To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect consumers against
unfair trade practices? - Correct answer-By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they
had to buy a phone plan at a 100% inflated price to be eligible for the offer.Which
unfair trade practice did the store adopt? - Correct answer-Misleading price
information
A consumer approached a shop to purchase edible oil and enquire about its
ingredients before making a final purchase. A seller did not disclose the ingredients
©C0PYRIGHT 2025, ALL RIGHTS RESERVED 2
, of an edible product before accepting payment for it.Which unfair trade practice
did the seller adopt? - Correct answer-Failing to disclose pertinent information
What is used to measure the sustainability of an organization's social responsibility
efforts? - Correct answer-Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a
direct benefit that the company will have due to this practice? - Correct answer-
Positive benevolent halo effect
An employee at a company arrives consistently late. The employee's manager
checks the company policy about tardiness. The policy states that employees who
arrive late may be subject to disciplinary action, up to and including termination.
The manager also remembers hearing another employee being verbally warned
about a similar situation.What should be the first action by the manager? - Correct
answer-Consult with HR.
One of a company's items has been in production for six months but is still sold
stating "new." Which unfair practice is the company engaged in, according to the
Federal Trade Commission Act? - Correct answer-Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees
in the year 2014. In 2015, the CEO of the company took a pay cut to raise
employee salaries. This led the employees to stay and work hard to achieve the
©C0PYRIGHT 2025, ALL RIGHTS RESERVED 3
