NAU ACC 205 COMPREHENSIVE EXAMS 2025/2026
QUESTIONS AND ANSWERS GRADED A+
✔✔free exercise clause - ✔✔The provision in the First Amendment to the U.S.
Constitution that prohibits Congress from making any law "prohibiting the free exercise"
of religion.
✔✔search warrant - ✔✔An order granted by a public authority, such as a judge, that
authorizes law enforcement personnel to search particular premises or property.
✔✔probable cause - ✔✔Reasonable grounds for believing that a search should be
conducted or that a person should be arrested.
✔✔due process clause - ✔✔The provisions of the Fifth and Fourteenth Amendments to
the U.S. Constitution that guarantee that no person shall be deprived of life, liberty, or
property without due process of law. Similar clauses are found in most state
constitutions.
✔✔equal protection clause - ✔✔The provision in the Fourteenth Amendment to the U.S.
Constitution that guarantees that no state will "deny to any person within its jurisdiction
the equal protection of the laws." This clause mandates that state governments treat
similarly situated individuals in a similar manner.
✔✔ethics - ✔✔Moral principles and values applied to social behavior.
✔✔business ethics - ✔✔Ethics in a business context; a consensus of what constitutes
right or wrong behavior in the world of business and the application of moral principles
to situations that arise in a business setting.
✔✔moral minimum - ✔✔The minimum degree of ethical behavior expected of a
business firm, which is usually defined as compliance with the law.
✔✔triple bottom line - ✔✔The idea that investors and others should consider not only
corporate profits, but also the corporation's impact on people and on the planet when
assessing the firm. (The triple bottom line is people, planet, and profits.)
✔✔Duty-based ethics - ✔✔An ethical philosophy rooted in the idea that every person
has certain duties to others, including both humans and the planet. Those duties may
be derived from religious principles or from other philosophical reasoning.
✔✔ethical reasoning - ✔✔A reasoning process in which an individual links his or her
moral convictions or ethical standards to the particular situation at hand.
,✔✔Outcome-based ethics - ✔✔An ethical philosophy that focuses on the impacts of a
decision on society or on key stakeholders.
✔✔principle of rights - ✔✔The principle that human beings have certain fundamental
rights (to life, freedom, and the pursuit of happiness, for example). A key factor in
determining whether a business decision is ethical under this theory is how that decision
affects the rights of others, such as employees, consumers, suppliers, and the
community.
✔✔categorical imperative - ✔✔A concept developed by the philosopher Immanuel Kant
as an ethical guideline for behavior. In deciding whether an action is right or wrong, or
desirable or undesirable, a person should evaluate the action in terms of what would
happen if everybody else in the same situation, or category, acted the same way.
✔✔utilitarianism - ✔✔An approach to ethical reasoning in which ethically correct
behavior is related to an evaluation of the consequences of a given action on those who
will be affected by it. In utilitarian reasoning, a "good" decision is one that results in the
greatest good for the greatest number of people affected by the decision.
✔✔cost-benefit analysis - ✔✔A decision-making technique that involves weighing the
costs of a given action against the benefits of the action.
✔✔Corporate social responsibility (CSR) - ✔✔The concept that corporations can and
should act ethically and be accountable to society for their actions.
✔✔Outsourcing - ✔✔The practice by which a company hires an outside firm or
individual to perform work rather than hiring employees.
✔✔stakeholders - ✔✔Groups, other than the company's shareholders, that are affected
by corporate decisions. Stakeholders include employees, customers, creditors,
suppliers, and the community in which the corporation operates.
✔✔judicial review - ✔✔The process by which courts decide on the constitutionality of
legislative enactments and actions of the executive branch.
✔✔in personam jurisdiction - ✔✔Court jurisdiction over the "person" involved in a legal
action; personal jurisdiction.
✔✔jurisdiction - ✔✔The authority of a court to hear a case and decide a specific action.
✔✔in rem jurisdiction - ✔✔Court jurisdiction over a defendant's property.
,✔✔long arm statute - ✔✔A state statute that permits a state to obtain personal
jurisdiction over nonresident defendants. A defendant must have "minimum contacts"
with that state for the statute to apply.
✔✔Probate courts - ✔✔A state court of limited jurisdiction that conducts proceedings
relating to the settlement of a deceased person's estate.
✔✔federal question - ✔✔A question that pertains to the U.S. Constitution, acts of
Congress, or treaties. A federal question provides a basis for federal jurisdiction.
✔✔Bankruptcy courts - ✔✔A federal court of limited jurisdiction that handles only
bankruptcy proceedings.
✔✔diversity of citizenship - ✔✔Under Article III, Section 2, of the Constitution, a basis
for federal court jurisdiction over a lawsuit between (1) citizens of different states, (2) a
foreign country and citizens of a state or of different states, or (3) citizens of a state and
citizens or subjects of a foreign country. The amount in controversy must be more than
$75,000 before a federal court can take jurisdiction in such cases.
✔✔concurrent jurisdiction - ✔✔Jurisdiction that exists when two different courts have
the power to hear a case. For example, some cases can be heard in either a federal or
a state court.
✔✔exclusive jurisdiction - ✔✔Jurisdiction that exists when a case can be heard only in a
particular court or type of court, such as a federal court or a state court.
✔✔Venue - ✔✔(pronounced ven-yoo) The geographical district in which an action is
tried and from which the jury is selected.
✔✔Small claims courts - ✔✔Special courts in which parties may litigate small claims
(usually, claims involving $2,500 or less). Attorneys are not required in small claims
courts and in many states are not allowed to represent the parties.
✔✔standing to sue - ✔✔The requirement that an individual must have a sufficient stake
in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate
that he or she has been either injured or threatened with injury.
✔✔question of fact - ✔✔In a lawsuit, an issue involving a factual dispute. A question of
fact can be decided by a judge or a jury.
✔✔writ of certiorari - ✔✔(pronounced sur-shee-uh-rah-ree) A writ from a higher court
asking the lower court for the record of the case for review.
, ✔✔question of law - ✔✔In a lawsuit, an issue involving the application or interpretation
of a law. Only a judge, and not a jury, can decide a question of law.
✔✔rule of four - ✔✔A rule of the United States Supreme Court under which the Court
will not issue a writ of certiorari unless at least four justices agree to do so.
✔✔Litigation - ✔✔The process of resolving a dispute through the court system.
✔✔alternative dispute resolution (ADR) - ✔✔The resolution of disputes in ways other
than those involved in the traditional judicial process. Negotiation, mediation, and
arbitration are forms of ADR.
✔✔negotiation - ✔✔In regard to dispute settlement, a process in which parties attempt
to settle their dispute without going to court, with or without attorneys to represent them.
✔✔mediation - ✔✔A method of settling disputes outside of court by using the services
of a neutral third party, called a mediator. The mediator acts as a communicating agent
between the parties and suggests ways in which the parties can resolve their dispute.
✔✔arbitration - ✔✔The settling of a dispute by submitting it to a disinterested third party
(other than a court), who renders a decision. The decision may or may not be legally
binding.
✔✔award - ✔✔In the context of litigation, the amount of money awarded to a plaintiff in
a civil lawsuit as damages. In the context of arbitration, the arbitrator's decision.
✔✔arbitration clause - ✔✔A clause in a contract that provides that, in the event of a
dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in
court.
✔✔mini-trial - ✔✔A private proceeding in which each party to a dispute argues its
position before the other side. A neutral third party may be present and act as an
adviser if the parties fail to reach an agreement.
✔✔early neutral case evaluation - ✔✔A form of alternative dispute resolution in which a
neutral third party evaluates the strengths and weakness of the disputing parties'
positions. The evaluator's opinion forms the basis for negotiating a settlement.
✔✔summary jury trials - ✔✔A method of settling disputes in which a trial is held, but the
jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an
agreement during the mandatory negotiations that immediately follow.
✔✔online dispute resolution (ODR) - ✔✔The resolution of disputes with the assistance
of organizations that offer dispute-resolution services via the Internet.
QUESTIONS AND ANSWERS GRADED A+
✔✔free exercise clause - ✔✔The provision in the First Amendment to the U.S.
Constitution that prohibits Congress from making any law "prohibiting the free exercise"
of religion.
✔✔search warrant - ✔✔An order granted by a public authority, such as a judge, that
authorizes law enforcement personnel to search particular premises or property.
✔✔probable cause - ✔✔Reasonable grounds for believing that a search should be
conducted or that a person should be arrested.
✔✔due process clause - ✔✔The provisions of the Fifth and Fourteenth Amendments to
the U.S. Constitution that guarantee that no person shall be deprived of life, liberty, or
property without due process of law. Similar clauses are found in most state
constitutions.
✔✔equal protection clause - ✔✔The provision in the Fourteenth Amendment to the U.S.
Constitution that guarantees that no state will "deny to any person within its jurisdiction
the equal protection of the laws." This clause mandates that state governments treat
similarly situated individuals in a similar manner.
✔✔ethics - ✔✔Moral principles and values applied to social behavior.
✔✔business ethics - ✔✔Ethics in a business context; a consensus of what constitutes
right or wrong behavior in the world of business and the application of moral principles
to situations that arise in a business setting.
✔✔moral minimum - ✔✔The minimum degree of ethical behavior expected of a
business firm, which is usually defined as compliance with the law.
✔✔triple bottom line - ✔✔The idea that investors and others should consider not only
corporate profits, but also the corporation's impact on people and on the planet when
assessing the firm. (The triple bottom line is people, planet, and profits.)
✔✔Duty-based ethics - ✔✔An ethical philosophy rooted in the idea that every person
has certain duties to others, including both humans and the planet. Those duties may
be derived from religious principles or from other philosophical reasoning.
✔✔ethical reasoning - ✔✔A reasoning process in which an individual links his or her
moral convictions or ethical standards to the particular situation at hand.
,✔✔Outcome-based ethics - ✔✔An ethical philosophy that focuses on the impacts of a
decision on society or on key stakeholders.
✔✔principle of rights - ✔✔The principle that human beings have certain fundamental
rights (to life, freedom, and the pursuit of happiness, for example). A key factor in
determining whether a business decision is ethical under this theory is how that decision
affects the rights of others, such as employees, consumers, suppliers, and the
community.
✔✔categorical imperative - ✔✔A concept developed by the philosopher Immanuel Kant
as an ethical guideline for behavior. In deciding whether an action is right or wrong, or
desirable or undesirable, a person should evaluate the action in terms of what would
happen if everybody else in the same situation, or category, acted the same way.
✔✔utilitarianism - ✔✔An approach to ethical reasoning in which ethically correct
behavior is related to an evaluation of the consequences of a given action on those who
will be affected by it. In utilitarian reasoning, a "good" decision is one that results in the
greatest good for the greatest number of people affected by the decision.
✔✔cost-benefit analysis - ✔✔A decision-making technique that involves weighing the
costs of a given action against the benefits of the action.
✔✔Corporate social responsibility (CSR) - ✔✔The concept that corporations can and
should act ethically and be accountable to society for their actions.
✔✔Outsourcing - ✔✔The practice by which a company hires an outside firm or
individual to perform work rather than hiring employees.
✔✔stakeholders - ✔✔Groups, other than the company's shareholders, that are affected
by corporate decisions. Stakeholders include employees, customers, creditors,
suppliers, and the community in which the corporation operates.
✔✔judicial review - ✔✔The process by which courts decide on the constitutionality of
legislative enactments and actions of the executive branch.
✔✔in personam jurisdiction - ✔✔Court jurisdiction over the "person" involved in a legal
action; personal jurisdiction.
✔✔jurisdiction - ✔✔The authority of a court to hear a case and decide a specific action.
✔✔in rem jurisdiction - ✔✔Court jurisdiction over a defendant's property.
,✔✔long arm statute - ✔✔A state statute that permits a state to obtain personal
jurisdiction over nonresident defendants. A defendant must have "minimum contacts"
with that state for the statute to apply.
✔✔Probate courts - ✔✔A state court of limited jurisdiction that conducts proceedings
relating to the settlement of a deceased person's estate.
✔✔federal question - ✔✔A question that pertains to the U.S. Constitution, acts of
Congress, or treaties. A federal question provides a basis for federal jurisdiction.
✔✔Bankruptcy courts - ✔✔A federal court of limited jurisdiction that handles only
bankruptcy proceedings.
✔✔diversity of citizenship - ✔✔Under Article III, Section 2, of the Constitution, a basis
for federal court jurisdiction over a lawsuit between (1) citizens of different states, (2) a
foreign country and citizens of a state or of different states, or (3) citizens of a state and
citizens or subjects of a foreign country. The amount in controversy must be more than
$75,000 before a federal court can take jurisdiction in such cases.
✔✔concurrent jurisdiction - ✔✔Jurisdiction that exists when two different courts have
the power to hear a case. For example, some cases can be heard in either a federal or
a state court.
✔✔exclusive jurisdiction - ✔✔Jurisdiction that exists when a case can be heard only in a
particular court or type of court, such as a federal court or a state court.
✔✔Venue - ✔✔(pronounced ven-yoo) The geographical district in which an action is
tried and from which the jury is selected.
✔✔Small claims courts - ✔✔Special courts in which parties may litigate small claims
(usually, claims involving $2,500 or less). Attorneys are not required in small claims
courts and in many states are not allowed to represent the parties.
✔✔standing to sue - ✔✔The requirement that an individual must have a sufficient stake
in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate
that he or she has been either injured or threatened with injury.
✔✔question of fact - ✔✔In a lawsuit, an issue involving a factual dispute. A question of
fact can be decided by a judge or a jury.
✔✔writ of certiorari - ✔✔(pronounced sur-shee-uh-rah-ree) A writ from a higher court
asking the lower court for the record of the case for review.
, ✔✔question of law - ✔✔In a lawsuit, an issue involving the application or interpretation
of a law. Only a judge, and not a jury, can decide a question of law.
✔✔rule of four - ✔✔A rule of the United States Supreme Court under which the Court
will not issue a writ of certiorari unless at least four justices agree to do so.
✔✔Litigation - ✔✔The process of resolving a dispute through the court system.
✔✔alternative dispute resolution (ADR) - ✔✔The resolution of disputes in ways other
than those involved in the traditional judicial process. Negotiation, mediation, and
arbitration are forms of ADR.
✔✔negotiation - ✔✔In regard to dispute settlement, a process in which parties attempt
to settle their dispute without going to court, with or without attorneys to represent them.
✔✔mediation - ✔✔A method of settling disputes outside of court by using the services
of a neutral third party, called a mediator. The mediator acts as a communicating agent
between the parties and suggests ways in which the parties can resolve their dispute.
✔✔arbitration - ✔✔The settling of a dispute by submitting it to a disinterested third party
(other than a court), who renders a decision. The decision may or may not be legally
binding.
✔✔award - ✔✔In the context of litigation, the amount of money awarded to a plaintiff in
a civil lawsuit as damages. In the context of arbitration, the arbitrator's decision.
✔✔arbitration clause - ✔✔A clause in a contract that provides that, in the event of a
dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in
court.
✔✔mini-trial - ✔✔A private proceeding in which each party to a dispute argues its
position before the other side. A neutral third party may be present and act as an
adviser if the parties fail to reach an agreement.
✔✔early neutral case evaluation - ✔✔A form of alternative dispute resolution in which a
neutral third party evaluates the strengths and weakness of the disputing parties'
positions. The evaluator's opinion forms the basis for negotiating a settlement.
✔✔summary jury trials - ✔✔A method of settling disputes in which a trial is held, but the
jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an
agreement during the mandatory negotiations that immediately follow.
✔✔online dispute resolution (ODR) - ✔✔The resolution of disputes with the assistance
of organizations that offer dispute-resolution services via the Internet.
