BADM 300 EXAM 1 STUDY GUIDE
CORRECT 100%
What is a law - ANSWERA law is a rule that is...
- Formally Recognized
- Legally Binding and Enforceable
- Enacted by federal, state, or local government
Federal Sources of Law: 1 - ANSWERConstitution
Federal Sources of Law: 2 - ANSWERTreaties
Federal Sources of Law: 3 - ANSWERStatutes
Federal Sources of Law: 4 - ANSWERJudicial Decisions
Federal Sources of Law: 5 - ANSWERExecutive Orders
Federal Sources of Law: 6 - ANSWERAdmin Regs
State Sources of Law: 1 - ANSWERState Constitution
State Sources of Law: 2 - ANSWERState Statutes
State Sources of Law: 3 - ANSWERState Jud. Decisions
State Sources of Law: 4 - ANSWERState Exec. Orders
State Sources of Law: 5 - ANSWERState administrative regulations
State Sources of Law: 6 - ANSWERLocal Ordinances
The Environmental Protection Agency (a federal agency) issues a new regulation that
limits the amount of pesticides that farms can use in crop production. Recognizing that
the regulation will have a huge negative impact on the state's economy, the Governor of
Illinois issues an executive order stating that Illinois farmers may use pesticides in
amounts that exceed the EPA's recent regulation. If you are a farmer who uses
pesticides in crop production, which law will govern your situation?
a.The EPA regulation because an executive order is not a law
b.The EPA regulation because federal law overrides state law
c.The Governor's order because an EPA regulation is not a law
d.The Governor's order because it is more recent than the EPA regulation - ANSWERb)
The EPA regulation because federal law overrides state law
, Judicial Precedent - ANSWERdecisions of courts have value as precedent for future
cases similarly circumstanced
Business Cocktail - ANSWERComplexity
Taxation
Control
Liability
Sole Proprietorship Complexity - ANSWERSimple
Sole Proprietorship Taxation - ANSWERSingle
Sole Proprietorship Control - ANSWERTotal
Sole Proprietorship Liability - ANSWERunlimited personal liability
General Partnership Taxation - ANSWERSingle
LLC Control - ANSWERCan be board or member managed
LLC Taxation - ANSWERCan be either a single or double taxed
Downsides of an LLC - ANSWERHarder to raise capital
I take out a $100,000 loan on behalf of Herbie's without telling Alivia. With the money, I
buy a Tesla and get a custom Herbie's Horseshoe decal on the side. I think it's pretty
cool, but Alivia's upset that I did it without consulting her. What's worse, Herbie's doesn't
have the money to make the loan payments, and we default. The bank sues for the loan
amount ($100,000). What is the maximum Alivia can be personally liable for?
a.Nothing because the loan is Professor Warnick'sfault
b.$50,000 because liability is shared equally in a partnership
c.$100,000 because either partner may be liable for the full amount
d.I miss Capsim - ANSWERC)
Domestic vs. Foreign vs. Alien - ANSWERd-an insurer organized under the laws of this
state, f-insurer not organized in this state, a-insurer organized outside of the US
LLC Formation - ANSWERSuper easy, all you need is to send some documents to the
state
3 Levels of Corporate Structure - ANSWERShareholders
Directors
Officers
CORRECT 100%
What is a law - ANSWERA law is a rule that is...
- Formally Recognized
- Legally Binding and Enforceable
- Enacted by federal, state, or local government
Federal Sources of Law: 1 - ANSWERConstitution
Federal Sources of Law: 2 - ANSWERTreaties
Federal Sources of Law: 3 - ANSWERStatutes
Federal Sources of Law: 4 - ANSWERJudicial Decisions
Federal Sources of Law: 5 - ANSWERExecutive Orders
Federal Sources of Law: 6 - ANSWERAdmin Regs
State Sources of Law: 1 - ANSWERState Constitution
State Sources of Law: 2 - ANSWERState Statutes
State Sources of Law: 3 - ANSWERState Jud. Decisions
State Sources of Law: 4 - ANSWERState Exec. Orders
State Sources of Law: 5 - ANSWERState administrative regulations
State Sources of Law: 6 - ANSWERLocal Ordinances
The Environmental Protection Agency (a federal agency) issues a new regulation that
limits the amount of pesticides that farms can use in crop production. Recognizing that
the regulation will have a huge negative impact on the state's economy, the Governor of
Illinois issues an executive order stating that Illinois farmers may use pesticides in
amounts that exceed the EPA's recent regulation. If you are a farmer who uses
pesticides in crop production, which law will govern your situation?
a.The EPA regulation because an executive order is not a law
b.The EPA regulation because federal law overrides state law
c.The Governor's order because an EPA regulation is not a law
d.The Governor's order because it is more recent than the EPA regulation - ANSWERb)
The EPA regulation because federal law overrides state law
, Judicial Precedent - ANSWERdecisions of courts have value as precedent for future
cases similarly circumstanced
Business Cocktail - ANSWERComplexity
Taxation
Control
Liability
Sole Proprietorship Complexity - ANSWERSimple
Sole Proprietorship Taxation - ANSWERSingle
Sole Proprietorship Control - ANSWERTotal
Sole Proprietorship Liability - ANSWERunlimited personal liability
General Partnership Taxation - ANSWERSingle
LLC Control - ANSWERCan be board or member managed
LLC Taxation - ANSWERCan be either a single or double taxed
Downsides of an LLC - ANSWERHarder to raise capital
I take out a $100,000 loan on behalf of Herbie's without telling Alivia. With the money, I
buy a Tesla and get a custom Herbie's Horseshoe decal on the side. I think it's pretty
cool, but Alivia's upset that I did it without consulting her. What's worse, Herbie's doesn't
have the money to make the loan payments, and we default. The bank sues for the loan
amount ($100,000). What is the maximum Alivia can be personally liable for?
a.Nothing because the loan is Professor Warnick'sfault
b.$50,000 because liability is shared equally in a partnership
c.$100,000 because either partner may be liable for the full amount
d.I miss Capsim - ANSWERC)
Domestic vs. Foreign vs. Alien - ANSWERd-an insurer organized under the laws of this
state, f-insurer not organized in this state, a-insurer organized outside of the US
LLC Formation - ANSWERSuper easy, all you need is to send some documents to the
state
3 Levels of Corporate Structure - ANSWERShareholders
Directors
Officers
