MGMT 200 PURDUE UPDATED EXAM SCRIPT QUESTIONS
AND SOLUTIONS GRADED A+
✔✔Americans with Disabilities Act - ✔✔applies to public and private,
can seek reasonable accomodation
without undue hardship on the business
✔✔Disability - ✔✔physical or mental impairment that limits major life activity, history of
impairment, or regarded as having such impairment
✔✔duty of loyalty - ✔✔use reasonable skill and effort to do job as employee
✔✔At will - ✔✔employees can quit or be fired at any time
✔✔fringe benefits - ✔✔no constitutional law that requires for benefits such as
insurance, vaction time
✔✔Family and Medical Leave Act - ✔✔Act that says 50+ employees must give upaid
time to tend to family members or new children without employment consequence
✔✔non compete - ✔✔a clause that says one cannot leave and start a competing
business for industries where customers have lots of goodwill with their employees
(haircut)
✔✔chapter 11 - ✔✔reorganization of debt to move forward if they have a viable
business model
✔✔chapter 7 - ✔✔liquidation: persons, partnerships, corps
✔✔chapter 13 - ✔✔personal bankruptcy/reorganization
plan of repayment for 5 years, trustee appointed to deal with it
✔✔stay - ✔✔petition of bankruptcy signals that creditors mus stop action against party ,
cannot repo once in bankruptcy
✔✔farmers, ranchers, nonprofits - ✔✔Exceptions to involuntary liquidation
✔✔sole proprietorship - ✔✔one person owns a business, no seperate enitity, all profits
go to owner, owner pays direct taxes (no double taxation), Unlimited personal risk
✔✔partnership - ✔✔(no federal taxes/double taxation) ARE distinct legal entities, can
be formed verbally
, ✔✔general partnership - ✔✔joint control, share profits, NO double taxation, but
personal liability for all debts, can be formed orally, partners owe fiduciary relationship
to partnership
✔✔limited partnership - ✔✔made of general partners and limited partners (dont get to
call shots, dont have personal liability) MUST BE IN WIRITNG
✔✔LLC (limited liability company!!) - ✔✔no risk of double taxation, limited liability to
investment, must have operating agreement, and be registered, EVERY MEMBER can
bind the company, member managed and they have interest. Majority members owe
fiduciary ob to minority member
✔✔Franchise (franchisor,franchisee) - ✔✔dependent relationship, owner of one
trademark/name authorizes use to another, gov regulation to protect the liscensing party
bc of large scale investment that is tied up
✔✔1. product distributorship (cars)
2. chains
3. trademark licensing - ✔✔types of franchises
✔✔close corporations - ✔✔corporation that is managed by a small group of people,
(less than 50), not traded on the market, can make more rapid decisions than public
✔✔public corporations - ✔✔corps that usually have more working capital, but owe
fiduciary relationship to shareholders
✔✔equity financing - ✔✔stock
✔✔debt financing - ✔✔bonds
✔✔1st (speech/speech as money)
4th (no search and seizure) - ✔✔corporations rights
✔✔corporate governance - ✔✔controll of a corp
✔✔bylaws - ✔✔specific rules and regulation of government internall
✔✔stakeholders - ✔✔regular employees of a corp for ex
✔✔shareholder rights - ✔✔rights to receive dividends, if declared, right to vote, recieve
annual reports, bring lawsuits (against BOD/management), sell shares, dodd frank,
owed a fiduciary obligation
AND SOLUTIONS GRADED A+
✔✔Americans with Disabilities Act - ✔✔applies to public and private,
can seek reasonable accomodation
without undue hardship on the business
✔✔Disability - ✔✔physical or mental impairment that limits major life activity, history of
impairment, or regarded as having such impairment
✔✔duty of loyalty - ✔✔use reasonable skill and effort to do job as employee
✔✔At will - ✔✔employees can quit or be fired at any time
✔✔fringe benefits - ✔✔no constitutional law that requires for benefits such as
insurance, vaction time
✔✔Family and Medical Leave Act - ✔✔Act that says 50+ employees must give upaid
time to tend to family members or new children without employment consequence
✔✔non compete - ✔✔a clause that says one cannot leave and start a competing
business for industries where customers have lots of goodwill with their employees
(haircut)
✔✔chapter 11 - ✔✔reorganization of debt to move forward if they have a viable
business model
✔✔chapter 7 - ✔✔liquidation: persons, partnerships, corps
✔✔chapter 13 - ✔✔personal bankruptcy/reorganization
plan of repayment for 5 years, trustee appointed to deal with it
✔✔stay - ✔✔petition of bankruptcy signals that creditors mus stop action against party ,
cannot repo once in bankruptcy
✔✔farmers, ranchers, nonprofits - ✔✔Exceptions to involuntary liquidation
✔✔sole proprietorship - ✔✔one person owns a business, no seperate enitity, all profits
go to owner, owner pays direct taxes (no double taxation), Unlimited personal risk
✔✔partnership - ✔✔(no federal taxes/double taxation) ARE distinct legal entities, can
be formed verbally
, ✔✔general partnership - ✔✔joint control, share profits, NO double taxation, but
personal liability for all debts, can be formed orally, partners owe fiduciary relationship
to partnership
✔✔limited partnership - ✔✔made of general partners and limited partners (dont get to
call shots, dont have personal liability) MUST BE IN WIRITNG
✔✔LLC (limited liability company!!) - ✔✔no risk of double taxation, limited liability to
investment, must have operating agreement, and be registered, EVERY MEMBER can
bind the company, member managed and they have interest. Majority members owe
fiduciary ob to minority member
✔✔Franchise (franchisor,franchisee) - ✔✔dependent relationship, owner of one
trademark/name authorizes use to another, gov regulation to protect the liscensing party
bc of large scale investment that is tied up
✔✔1. product distributorship (cars)
2. chains
3. trademark licensing - ✔✔types of franchises
✔✔close corporations - ✔✔corporation that is managed by a small group of people,
(less than 50), not traded on the market, can make more rapid decisions than public
✔✔public corporations - ✔✔corps that usually have more working capital, but owe
fiduciary relationship to shareholders
✔✔equity financing - ✔✔stock
✔✔debt financing - ✔✔bonds
✔✔1st (speech/speech as money)
4th (no search and seizure) - ✔✔corporations rights
✔✔corporate governance - ✔✔controll of a corp
✔✔bylaws - ✔✔specific rules and regulation of government internall
✔✔stakeholders - ✔✔regular employees of a corp for ex
✔✔shareholder rights - ✔✔rights to receive dividends, if declared, right to vote, recieve
annual reports, bring lawsuits (against BOD/management), sell shares, dodd frank,
owed a fiduciary obligation
