BUS 201 FINAL EXAM QUESTIONS WITH ACCURATE
ANSWERS
_____ protects employees against discrimination and harassment based upon
race, color, religion, national origin, and sex. correct answer Title VII of the Civil
Rights Act of 1964
A _____ transaction is a transaction in which the payment of a debt is guaranteed
by the debtor's personal property owned by the debtor. correct answer secured
A directors, who cannot attend a board meeting due to a good reason, is allowed
to vote by proxy. correct answer This statement is incorrect.
A mother lives in Indian River & has a farm with 400 acres valued at $400,000.
The farm is in the mother's name only. When she dies, she wants to give her
estate to her 3 children and avoid probate. Based on our class discussion, how
could the mother do this? correct answer Re-title mom's property so the three
children and the mom are "joint tenants" or put the farm in a trust, during
mother's life-time, naming the children the beneficiaries of the trust when
mother dies are both good answers
A power of attorney can be general or specific. correct answer true
A trust has three parties that are involved. Name the three parties: correct
answer The trustee, the grantor, and the beneficiary
A(n) _____ takes over administration of the debtor's estate. correct answer
trustee
,According to the _____ doctrine, an employee may be fired for almost any
reason. correct answer employment-at-will
An agent's implied authority is derived from an agent's express authority and
consists of what is reasonably necessary for carrying out the agent's grant of
express authority.
Group starts correct answer true
An individual who hires an independent contractor can generally be held liable for
the torts committed by an independent contractor. correct answer FALSE
An NFL football player "crashed" a party where the home-owner asked football
player to leave. Football player beat-up and kicked home-owner, before football
player left the party. The home-owner called the police and went to the hospital
(home-owner had $100,000 in medical bills). The police arrested football player
and charged him with felony battery. Football player pled guilty to misdemeanor
battery. Football player loses his job playing football and now has $500,000 in
debt (credit cards and other unsecured debt) and football player is being sued by
home-owner for $600,000. Home-owner claims he is entitled to $100,000 for
medical bills and $500,000 for the pain and injury home-owner received from the
beating. Football player, who only has assets of $20,000, and now works at
Wendy's making $18,000 per year, files a peition in Chapter 7 bankruptcy. Is filing
Chapter 7 bankruptcy the right strategy? correct answer No. Football player
should file for Chapter 11 bankruptcy since football player does not qualify for
Chapter 13. The home-owner lawsuit is a non-dischargeable debt under Chapter 7
but may be paid-off under a Chapter 11 petition.
Aunt Mary dies & she has no relatives (blood heirs). She leaves everything she
owns to Vivian ($60,000). Based on our video class discussion / class outline and
assuming Vivian was just a friend of Mary, what is the best answer? correct
answer Vivian can reject this inheritance and elect to receive nothing.
, Based on our vido class discussion / outline material, why was Rosa Parks arrested
on a bus in Montgomery, Alabama, on December 1, 1955? correct answer She
refused to give up her seat to a white person when ordered to do so by the bus
driver (a violation of Alabama law)
Based on video/outline discussion, what is corporate social responsibility (CSR)?
correct answer The deliberate inclusion of public interest into corporate decision-
making & the 3BL
Billy BigBucks, a millionaire, forms a corporation so Billy will have "limited
liability" with his business. Billy invests $1,000 in the business and borrows the
rest of the money needed to operate the business. Billy's business is called "Back-
Yards-R-Us, Limited" and the business installs a swimming pool in Kelly's backyard
(this is the first customer of the business). During construction of the swim pool, a
neighbor's son, Mike, falls into the empty pool and hits his head, causing a serious
concussion and injury. Billy's business did not have the required fence around the
construction site as required by the local law. The neighbor sues "Back-Yards-R-
Us, Limited" and Billy BigBucks personally for $200,000. Assuming the court
awards the neighbor $200,000 in damages for the injury to Mike, is it possible
that Billy BigBucks will be personally liable for this $200,000 judgement? correct
answer Back-Yards-R-Us, Limited is liable to the extent the business has assets
and Billy is personally liable for the $200,000 judgement, assuming the court
"pierces the corporate veil" and finds the owner of the business personally liable
since the corporation was breaking the law.
Dan Debtor owes John's Hardware $10,000 for purchases Dan has made on credit
(assume this debt is not secured). John and Dan are good friends. Dan files for
Chapter 7 bankruptcy but 60 days before filing the bankruptcy petition, Dan pays
John's Hardware $10,000 so the debt is paid in full. After the Chapter 7 filing, a
bankruptcy trustee is appointed. The trustee demands that John's Hardware give
ANSWERS
_____ protects employees against discrimination and harassment based upon
race, color, religion, national origin, and sex. correct answer Title VII of the Civil
Rights Act of 1964
A _____ transaction is a transaction in which the payment of a debt is guaranteed
by the debtor's personal property owned by the debtor. correct answer secured
A directors, who cannot attend a board meeting due to a good reason, is allowed
to vote by proxy. correct answer This statement is incorrect.
A mother lives in Indian River & has a farm with 400 acres valued at $400,000.
The farm is in the mother's name only. When she dies, she wants to give her
estate to her 3 children and avoid probate. Based on our class discussion, how
could the mother do this? correct answer Re-title mom's property so the three
children and the mom are "joint tenants" or put the farm in a trust, during
mother's life-time, naming the children the beneficiaries of the trust when
mother dies are both good answers
A power of attorney can be general or specific. correct answer true
A trust has three parties that are involved. Name the three parties: correct
answer The trustee, the grantor, and the beneficiary
A(n) _____ takes over administration of the debtor's estate. correct answer
trustee
,According to the _____ doctrine, an employee may be fired for almost any
reason. correct answer employment-at-will
An agent's implied authority is derived from an agent's express authority and
consists of what is reasonably necessary for carrying out the agent's grant of
express authority.
Group starts correct answer true
An individual who hires an independent contractor can generally be held liable for
the torts committed by an independent contractor. correct answer FALSE
An NFL football player "crashed" a party where the home-owner asked football
player to leave. Football player beat-up and kicked home-owner, before football
player left the party. The home-owner called the police and went to the hospital
(home-owner had $100,000 in medical bills). The police arrested football player
and charged him with felony battery. Football player pled guilty to misdemeanor
battery. Football player loses his job playing football and now has $500,000 in
debt (credit cards and other unsecured debt) and football player is being sued by
home-owner for $600,000. Home-owner claims he is entitled to $100,000 for
medical bills and $500,000 for the pain and injury home-owner received from the
beating. Football player, who only has assets of $20,000, and now works at
Wendy's making $18,000 per year, files a peition in Chapter 7 bankruptcy. Is filing
Chapter 7 bankruptcy the right strategy? correct answer No. Football player
should file for Chapter 11 bankruptcy since football player does not qualify for
Chapter 13. The home-owner lawsuit is a non-dischargeable debt under Chapter 7
but may be paid-off under a Chapter 11 petition.
Aunt Mary dies & she has no relatives (blood heirs). She leaves everything she
owns to Vivian ($60,000). Based on our video class discussion / class outline and
assuming Vivian was just a friend of Mary, what is the best answer? correct
answer Vivian can reject this inheritance and elect to receive nothing.
, Based on our vido class discussion / outline material, why was Rosa Parks arrested
on a bus in Montgomery, Alabama, on December 1, 1955? correct answer She
refused to give up her seat to a white person when ordered to do so by the bus
driver (a violation of Alabama law)
Based on video/outline discussion, what is corporate social responsibility (CSR)?
correct answer The deliberate inclusion of public interest into corporate decision-
making & the 3BL
Billy BigBucks, a millionaire, forms a corporation so Billy will have "limited
liability" with his business. Billy invests $1,000 in the business and borrows the
rest of the money needed to operate the business. Billy's business is called "Back-
Yards-R-Us, Limited" and the business installs a swimming pool in Kelly's backyard
(this is the first customer of the business). During construction of the swim pool, a
neighbor's son, Mike, falls into the empty pool and hits his head, causing a serious
concussion and injury. Billy's business did not have the required fence around the
construction site as required by the local law. The neighbor sues "Back-Yards-R-
Us, Limited" and Billy BigBucks personally for $200,000. Assuming the court
awards the neighbor $200,000 in damages for the injury to Mike, is it possible
that Billy BigBucks will be personally liable for this $200,000 judgement? correct
answer Back-Yards-R-Us, Limited is liable to the extent the business has assets
and Billy is personally liable for the $200,000 judgement, assuming the court
"pierces the corporate veil" and finds the owner of the business personally liable
since the corporation was breaking the law.
Dan Debtor owes John's Hardware $10,000 for purchases Dan has made on credit
(assume this debt is not secured). John and Dan are good friends. Dan files for
Chapter 7 bankruptcy but 60 days before filing the bankruptcy petition, Dan pays
John's Hardware $10,000 so the debt is paid in full. After the Chapter 7 filing, a
bankruptcy trustee is appointed. The trustee demands that John's Hardware give
