WGU D216 – Business Law for Accountants Objective
Assessment (OA) Latest!!!!! Questions & Answers Grade
A+
1. Which element is required for a valid contract?
A. Written agreement
B. Notarization
C. Consideration
D. Witness signature
Answer: C. Consideration
2. Which contract is void?
A. Contract with a minor
B. Contract obtained by fraud
C. Contract for illegal activity
D. Contract entered under duress
Answer: C. Contract for illegal activity
3. What is the primary purpose of the Uniform Commercial Code (UCC)?
A. Regulate employment law
B. Govern real estate transactions
C. Standardize commercial transactions
D. Control corporate taxation
Answer: C. Standardize commercial transactions
4. The UCC primarily applies to:
A. Real property
B. Services
C. Goods
D. Employment contracts
,Answer: C. Goods
5. Which situation creates an implied contract?
A. A written agreement
B. Oral promise
C. Conduct indicating agreement
D. Court-ordered obligation
Answer: C. Conduct indicating agreement
6. A contract entered into by a minor is generally:
A. Void
B. Voidable
C. Illegal
D. Unenforceable in all cases
Answer: B. Voidable
7. Which term refers to false statements of fact that induce a contract?
A. Duress
B. Mistake
C. Fraud
D. Undue influence
Answer: C. Fraud
8. What is consideration?
A. Written evidence
B. Exchange of value
C. Legal capacity
D. Contract acceptance
Answer: B. Exchange of value
,9. Which contract must be in writing under the Statute of Frauds?
A. Contract completed within one year
B. Sale of goods under $500
C. Real estate contract
D. Employment agreement
Answer: C. Real estate contract
10. A breach of contract occurs when:
A. One party changes their mind
B. One party fails to perform
C. The contract is oral
D. The contract is void
Answer: B. One party fails to perform
11. What remedy compensates the injured party for actual loss?
A. Punitive damages
B. Nominal damages
C. Compensatory damages
D. Liquidated damages
Answer: C. Compensatory damages
12. Punitive damages are intended to:
A. Compensate losses
B. Punish wrongful conduct
C. Cover court costs
D. Enforce contracts
Answer: B. Punish wrongful conduct
13. Which business structure provides limited liability and pass-through
taxation?
, A. Sole proprietorship
B. General partnership
C. Corporation
D. Limited liability company (LLC)
Answer: D. Limited liability company (LLC)
14. In a general partnership, partners are:
A. Not personally liable
B. Liable only for their share
C. Jointly and severally liable
D. Protected by the UCC
Answer: C. Jointly and severally liable
15. Piercing the corporate veil occurs when:
A. A corporation dissolves
B. Owners are personally liable due to misuse
C. Shares are sold publicly
D. Taxes are unpaid
Answer: B. Owners are personally liable due to misuse
16. Which duty requires directors to act in the best interest of the
corporation?
A. Duty of care
B. Duty of loyalty
C. Duty of obedience
D. Fiduciary duty
Answer: B. Duty of loyalty
17. What type of law involves disputes between private parties?
A. Criminal law
B. Administrative law
C. Civil law
D. Constitutional law
Assessment (OA) Latest!!!!! Questions & Answers Grade
A+
1. Which element is required for a valid contract?
A. Written agreement
B. Notarization
C. Consideration
D. Witness signature
Answer: C. Consideration
2. Which contract is void?
A. Contract with a minor
B. Contract obtained by fraud
C. Contract for illegal activity
D. Contract entered under duress
Answer: C. Contract for illegal activity
3. What is the primary purpose of the Uniform Commercial Code (UCC)?
A. Regulate employment law
B. Govern real estate transactions
C. Standardize commercial transactions
D. Control corporate taxation
Answer: C. Standardize commercial transactions
4. The UCC primarily applies to:
A. Real property
B. Services
C. Goods
D. Employment contracts
,Answer: C. Goods
5. Which situation creates an implied contract?
A. A written agreement
B. Oral promise
C. Conduct indicating agreement
D. Court-ordered obligation
Answer: C. Conduct indicating agreement
6. A contract entered into by a minor is generally:
A. Void
B. Voidable
C. Illegal
D. Unenforceable in all cases
Answer: B. Voidable
7. Which term refers to false statements of fact that induce a contract?
A. Duress
B. Mistake
C. Fraud
D. Undue influence
Answer: C. Fraud
8. What is consideration?
A. Written evidence
B. Exchange of value
C. Legal capacity
D. Contract acceptance
Answer: B. Exchange of value
,9. Which contract must be in writing under the Statute of Frauds?
A. Contract completed within one year
B. Sale of goods under $500
C. Real estate contract
D. Employment agreement
Answer: C. Real estate contract
10. A breach of contract occurs when:
A. One party changes their mind
B. One party fails to perform
C. The contract is oral
D. The contract is void
Answer: B. One party fails to perform
11. What remedy compensates the injured party for actual loss?
A. Punitive damages
B. Nominal damages
C. Compensatory damages
D. Liquidated damages
Answer: C. Compensatory damages
12. Punitive damages are intended to:
A. Compensate losses
B. Punish wrongful conduct
C. Cover court costs
D. Enforce contracts
Answer: B. Punish wrongful conduct
13. Which business structure provides limited liability and pass-through
taxation?
, A. Sole proprietorship
B. General partnership
C. Corporation
D. Limited liability company (LLC)
Answer: D. Limited liability company (LLC)
14. In a general partnership, partners are:
A. Not personally liable
B. Liable only for their share
C. Jointly and severally liable
D. Protected by the UCC
Answer: C. Jointly and severally liable
15. Piercing the corporate veil occurs when:
A. A corporation dissolves
B. Owners are personally liable due to misuse
C. Shares are sold publicly
D. Taxes are unpaid
Answer: B. Owners are personally liable due to misuse
16. Which duty requires directors to act in the best interest of the
corporation?
A. Duty of care
B. Duty of loyalty
C. Duty of obedience
D. Fiduciary duty
Answer: B. Duty of loyalty
17. What type of law involves disputes between private parties?
A. Criminal law
B. Administrative law
C. Civil law
D. Constitutional law
