Acct 215 Final Exam Review Questions
And All Correct Answers.
1. Which of the following business entities generally incurs "double taxation"? - Answer A corporation
2. Peter enters into an agency agreement with Wallace. Wallace is to deliver goods produced by Peter.
Peter loads his goods onto a trailer which Wallace then pulls with his truck. One day, Peter does not
exercise ordinary care when loading the trailer. Wallace does not exercise ordinary care when inspecting
the trailer. While Wallace is pulling the trailer, goods fall from the truck and hit the car of Nancy. Nancy's
car is damaged. Based upon these facts, Nancy can sue - Answer Peter and Wallace
3. Summer works for Ice Cream Stop which serves ice cream cones. Summer is paid by the hour. Her
hours are scheduled by her manager. The Ice Cream Shop withholds social security and Medicare taxes
from her paycheck. Summer is most likely a(an) - Answer employee
4. Which of the following chapters of bankruptcy would be best for an individual who recently lost their
job because of a disability? The individual is unlikely to have a steady stream of income in the future. The
individual has a large amount of debt. - Answer Chapter 7
5. A chapter 7 petition can be filed - Answer Voluntarily and involuntarily
6. Which of the following is withheld from an employee's paycheck? - Answer Social security tax
7. Allison would like to leave her farm to her children. Allison wants farm land to stay in her family. She
does not want any of her children to be able to sell their interest in the land. Allison should consider
leaving the property to them as - Answer Joint tenants with the right of survivorship
8. In the Clemens vs. Lesnek case, - Answer The court said an "as is" clause does not always alleviate a
seller from liability
9. Which of the following would be considered a "nutrition content claim?" - Answer A product
package which states "gluten free"
, 10. The Age Discrimination in Employment Act protects those - Answer Age 40 and Over
11. Which of the following would be acceptable under Title VII of the Civil Rights Act of 1964? - Answer
An employee is hired because he can speak Spanish and the company wants to reach a new target group
of customers
12. Hana enters into an express agency agreement with Nicholas. Nicholas is to solicit customer orders
for Hanna's business. One day, Nicholas tells a customer that the customer can have an extension of time
to pay Hana. Hana had told Nicholas he could not grant extensions as part of their express agency
agreement. Hana is angry with Nicholas and says she will refuse to honor his extension. Based on these
facts alone, the customer's best argument for enforcing the extension would be based upon which type
of power: - Answer Apparent Authority
13. Harrison is the CEO of Midatlanta Corporation. Harrison has nonpublic information about the
company that he knows will affect the stock price of the company. Harrison trades stock using that
information as a basis for his decision. Harrison has most likely violated which of the following duties? -
Answer Accounting
14. Stuart recently purchased his first home in the country. Local law prohibits Stuart from building
anything within 15 feet of his property line. Stuart would like to petition the local government for the
permission to build a garage within 15 feet of his property line. Stuart should seek a(n) - Answer
variance
15. Linda owns a restaurant. One night she finds an expensive handbag hanging on a chair. Linda believes
a customer placed the handbag there and forgot about it. The handbag is - Answer Mislaid Property
16. Lucas visits a local hardware store and rents a jack hammer which he hopes to use to remove a
concrete sidewalk. Lucas pays for the jack hammer by the hour. Under the common law rules regarding
bailment, Lucas owes - Answer An ordinary duty of care
17. Which of the following types of gifts was automatically revoked upon the survival of the person
making the gift assuming the person had been contemplating immediate death when they made the
gift? - Answer A gift causa mortis
And All Correct Answers.
1. Which of the following business entities generally incurs "double taxation"? - Answer A corporation
2. Peter enters into an agency agreement with Wallace. Wallace is to deliver goods produced by Peter.
Peter loads his goods onto a trailer which Wallace then pulls with his truck. One day, Peter does not
exercise ordinary care when loading the trailer. Wallace does not exercise ordinary care when inspecting
the trailer. While Wallace is pulling the trailer, goods fall from the truck and hit the car of Nancy. Nancy's
car is damaged. Based upon these facts, Nancy can sue - Answer Peter and Wallace
3. Summer works for Ice Cream Stop which serves ice cream cones. Summer is paid by the hour. Her
hours are scheduled by her manager. The Ice Cream Shop withholds social security and Medicare taxes
from her paycheck. Summer is most likely a(an) - Answer employee
4. Which of the following chapters of bankruptcy would be best for an individual who recently lost their
job because of a disability? The individual is unlikely to have a steady stream of income in the future. The
individual has a large amount of debt. - Answer Chapter 7
5. A chapter 7 petition can be filed - Answer Voluntarily and involuntarily
6. Which of the following is withheld from an employee's paycheck? - Answer Social security tax
7. Allison would like to leave her farm to her children. Allison wants farm land to stay in her family. She
does not want any of her children to be able to sell their interest in the land. Allison should consider
leaving the property to them as - Answer Joint tenants with the right of survivorship
8. In the Clemens vs. Lesnek case, - Answer The court said an "as is" clause does not always alleviate a
seller from liability
9. Which of the following would be considered a "nutrition content claim?" - Answer A product
package which states "gluten free"
, 10. The Age Discrimination in Employment Act protects those - Answer Age 40 and Over
11. Which of the following would be acceptable under Title VII of the Civil Rights Act of 1964? - Answer
An employee is hired because he can speak Spanish and the company wants to reach a new target group
of customers
12. Hana enters into an express agency agreement with Nicholas. Nicholas is to solicit customer orders
for Hanna's business. One day, Nicholas tells a customer that the customer can have an extension of time
to pay Hana. Hana had told Nicholas he could not grant extensions as part of their express agency
agreement. Hana is angry with Nicholas and says she will refuse to honor his extension. Based on these
facts alone, the customer's best argument for enforcing the extension would be based upon which type
of power: - Answer Apparent Authority
13. Harrison is the CEO of Midatlanta Corporation. Harrison has nonpublic information about the
company that he knows will affect the stock price of the company. Harrison trades stock using that
information as a basis for his decision. Harrison has most likely violated which of the following duties? -
Answer Accounting
14. Stuart recently purchased his first home in the country. Local law prohibits Stuart from building
anything within 15 feet of his property line. Stuart would like to petition the local government for the
permission to build a garage within 15 feet of his property line. Stuart should seek a(n) - Answer
variance
15. Linda owns a restaurant. One night she finds an expensive handbag hanging on a chair. Linda believes
a customer placed the handbag there and forgot about it. The handbag is - Answer Mislaid Property
16. Lucas visits a local hardware store and rents a jack hammer which he hopes to use to remove a
concrete sidewalk. Lucas pays for the jack hammer by the hour. Under the common law rules regarding
bailment, Lucas owes - Answer An ordinary duty of care
17. Which of the following types of gifts was automatically revoked upon the survival of the person
making the gift assuming the person had been contemplating immediate death when they made the
gift? - Answer A gift causa mortis
