BUSINESS LAW FOR ACCOUNTANTS - D216 – WGU EXAM
2025|100 QUESTIONS WITH ACCURATE SOLUTIONS
1. Describe how administrative law is formed and its significance in
governance.
Administrative law is formed through rules, regulations, orders,
and decisions made by administrative agencies, and it is
significant because it allows these agencies to effectively
implement and enforce laws.
Administrative law is a set of laws that only applies to federal
agencies.
Administrative law is primarily concerned with criminal justice.
Administrative law is created by the legislative branch to interpret
laws.
2. What is the term for a written offer that provides details about the issuer
and directs readers to the SEC website for more information?
Mutual fund
Private placement exemption
Exempt security
Free-writing prospectus
3. What is the minimum number of creditors required to join in a petition for
an involuntary bankruptcy if the debtor has twelve or more creditors?
Three
Two
One
,Four
,4. If a new law is introduced that contradicts established Common Law
principles, what might be the implications for the legal system?
The new law will automatically override all Common Law
principles.
The new law may create confusion and require judicial
interpretation to reconcile it with existing Common Law.
The new law will have no effect on Common Law.
The new law will be immediately accepted without question.
5. If a consumer-debtor is considering filing for bankruptcy, what
information should they expect to receive from the court clerk?
A summary of the court's history with bankruptcy cases.
Written notice of the general purpose, benefits, and costs of
each chapter under which they might proceed.
An oral explanation of the bankruptcy process.
A list of all creditors they owe money to.
6. What is the primary type of law that regulates limited liability companies?
Federal law
State law
Both state and federal law
Common law
7. Corporate executives are required to file reports with the Securities and
Exchange Commission concerning their ownership and transactions.
Which violation is this filing meant to discourage?
Insider trading
Rule 144
, Testing the waters
Prospectus misrepresentation
8. What is the definition of a workout agreement in the context of debt
management?
A formal contract between a debtor and his or her creditors to
negotiate a payment plan instead of foreclosure.
A legal document that allows creditors to seize assets without
negotiation.
An informal agreement between friends to lend money.
A type of bankruptcy filing that eliminates all debts.
9. In a bankruptcy case, if a corporation's officer is found to be an insider,
what implications could this have for the proceedings?
The officer would be exempt from all bankruptcy proceedings.
The corporation would automatically be liquidated without further
review.
The officer would be allowed to retain all assets without
consequence.
It could lead to scrutiny of transactions between the officer and
the corporation to ensure no preferential treatment was given.
10. What is the primary focus of outcome-based ethics?
It focuses on standards for behavior derived from religious
authorities
It focuses on basic rights
It focuses on the consequences of an action
It focuses on the obligations of the corporation
2025|100 QUESTIONS WITH ACCURATE SOLUTIONS
1. Describe how administrative law is formed and its significance in
governance.
Administrative law is formed through rules, regulations, orders,
and decisions made by administrative agencies, and it is
significant because it allows these agencies to effectively
implement and enforce laws.
Administrative law is a set of laws that only applies to federal
agencies.
Administrative law is primarily concerned with criminal justice.
Administrative law is created by the legislative branch to interpret
laws.
2. What is the term for a written offer that provides details about the issuer
and directs readers to the SEC website for more information?
Mutual fund
Private placement exemption
Exempt security
Free-writing prospectus
3. What is the minimum number of creditors required to join in a petition for
an involuntary bankruptcy if the debtor has twelve or more creditors?
Three
Two
One
,Four
,4. If a new law is introduced that contradicts established Common Law
principles, what might be the implications for the legal system?
The new law will automatically override all Common Law
principles.
The new law may create confusion and require judicial
interpretation to reconcile it with existing Common Law.
The new law will have no effect on Common Law.
The new law will be immediately accepted without question.
5. If a consumer-debtor is considering filing for bankruptcy, what
information should they expect to receive from the court clerk?
A summary of the court's history with bankruptcy cases.
Written notice of the general purpose, benefits, and costs of
each chapter under which they might proceed.
An oral explanation of the bankruptcy process.
A list of all creditors they owe money to.
6. What is the primary type of law that regulates limited liability companies?
Federal law
State law
Both state and federal law
Common law
7. Corporate executives are required to file reports with the Securities and
Exchange Commission concerning their ownership and transactions.
Which violation is this filing meant to discourage?
Insider trading
Rule 144
, Testing the waters
Prospectus misrepresentation
8. What is the definition of a workout agreement in the context of debt
management?
A formal contract between a debtor and his or her creditors to
negotiate a payment plan instead of foreclosure.
A legal document that allows creditors to seize assets without
negotiation.
An informal agreement between friends to lend money.
A type of bankruptcy filing that eliminates all debts.
9. In a bankruptcy case, if a corporation's officer is found to be an insider,
what implications could this have for the proceedings?
The officer would be exempt from all bankruptcy proceedings.
The corporation would automatically be liquidated without further
review.
The officer would be allowed to retain all assets without
consequence.
It could lead to scrutiny of transactions between the officer and
the corporation to ensure no preferential treatment was given.
10. What is the primary focus of outcome-based ethics?
It focuses on standards for behavior derived from religious
authorities
It focuses on basic rights
It focuses on the consequences of an action
It focuses on the obligations of the corporation
