NAU ACC 205 CORE EXAMS SET 2025/2026 QUESTIONS
AND ANSWERS GRADED A+
✔✔Limited Partner - ✔✔A partner whose liability is limited to their investment.
✔✔Limited Partnership (LP) - ✔✔A partnership with both general and limited partners.
✔✔Liquidated Damages: - ✔✔A pre-determined amount of damages agreed upon in a
contract in case of breach.
✔✔Merchant - ✔✔A person who regularly deals in goods of a particular kind.
✔✔Mirror Image Rule - ✔✔The common law rule that acceptance must mirror the offer's
terms exactly.
✔✔National Law - ✔✔The law specific to a particular nation.
✔✔Natural Law - ✔✔A legal theory that law should reflect universal moral principles
✔✔Negligence - ✔✔Failure to exercise reasonable care, resulting in harm to another.
✔✔Normal Trade Relations (NTR) Status - ✔✔A status granted by treaty requiring a
country to treat other member nations equally in trade.
✔✔Novation - ✔✔Replacing an old contract with a new one.
✔✔Offer - ✔✔A proposal to enter into a contract
✔✔Operating Agreement - ✔✔A document that outlines the management and operation
of an LLC
✔✔Parallel Citation - ✔✔Citing multiple sources where a legal authority can be found.
✔✔Partnership - ✔✔A business association between two or more persons.
✔✔Patent - ✔✔Legal protection for an invention, granting the inventor exclusive rights
to make, use, and sell the invention.
✔✔Piercing the Corporate Veil - ✔✔Holding shareholders personally liable for corporate
debts.
✔✔Police Powers - ✔✔State government powers to regulate for the health, safety, and
welfare of citizens.
, ✔✔Precedent - ✔✔A court decision that serves as an example for future cases with
similar facts.
✔✔Preemptive Rights - ✔✔A shareholder's right to purchase new shares before they
are offered to the public.
✔✔Preferred Stock - ✔✔A type of stock that provides a fixed dividend and priority in
asset distribution upon liquidation.
✔✔Privity of Contract - ✔✔The relationship between parties to a contract.
✔✔Probable Cause - ✔✔Reasonable grounds for believing that a crime has been
committed.
✔✔Procedural Law - ✔✔Law that governs the process of enforcing rights and resolving
disputes.
✔✔Promissory Estoppel - ✔✔A doctrine that prevents a party from going back on a
promise that another party relied upon to their detriment.
✔✔Prospectus - ✔✔A document that provides details about a security offering to
potential investors.
✔✔Quotas - ✔✔Government-imposed limits on the quantity of goods that can be
imported or exported.
✔✔Ratification - ✔✔Affirming a previously unauthorized act.
✔✔Reformation - ✔✔Court-ordered modification of a contract to reflect the parties' true
intent.
✔✔Reporters - ✔✔Books where court decisions are published.
✔✔Rescission - ✔✔Cancellation of a contract.
✔✔Respondeat Superior - ✔✔The principle that an employer is liable for the actions of
their employees within the scope of their employment.
✔✔Revocation - ✔✔The withdrawal of an offer by the offeror.
✔✔Search Warrant - ✔✔A legal document authorizing law enforcement to search a
specific location.
AND ANSWERS GRADED A+
✔✔Limited Partner - ✔✔A partner whose liability is limited to their investment.
✔✔Limited Partnership (LP) - ✔✔A partnership with both general and limited partners.
✔✔Liquidated Damages: - ✔✔A pre-determined amount of damages agreed upon in a
contract in case of breach.
✔✔Merchant - ✔✔A person who regularly deals in goods of a particular kind.
✔✔Mirror Image Rule - ✔✔The common law rule that acceptance must mirror the offer's
terms exactly.
✔✔National Law - ✔✔The law specific to a particular nation.
✔✔Natural Law - ✔✔A legal theory that law should reflect universal moral principles
✔✔Negligence - ✔✔Failure to exercise reasonable care, resulting in harm to another.
✔✔Normal Trade Relations (NTR) Status - ✔✔A status granted by treaty requiring a
country to treat other member nations equally in trade.
✔✔Novation - ✔✔Replacing an old contract with a new one.
✔✔Offer - ✔✔A proposal to enter into a contract
✔✔Operating Agreement - ✔✔A document that outlines the management and operation
of an LLC
✔✔Parallel Citation - ✔✔Citing multiple sources where a legal authority can be found.
✔✔Partnership - ✔✔A business association between two or more persons.
✔✔Patent - ✔✔Legal protection for an invention, granting the inventor exclusive rights
to make, use, and sell the invention.
✔✔Piercing the Corporate Veil - ✔✔Holding shareholders personally liable for corporate
debts.
✔✔Police Powers - ✔✔State government powers to regulate for the health, safety, and
welfare of citizens.
, ✔✔Precedent - ✔✔A court decision that serves as an example for future cases with
similar facts.
✔✔Preemptive Rights - ✔✔A shareholder's right to purchase new shares before they
are offered to the public.
✔✔Preferred Stock - ✔✔A type of stock that provides a fixed dividend and priority in
asset distribution upon liquidation.
✔✔Privity of Contract - ✔✔The relationship between parties to a contract.
✔✔Probable Cause - ✔✔Reasonable grounds for believing that a crime has been
committed.
✔✔Procedural Law - ✔✔Law that governs the process of enforcing rights and resolving
disputes.
✔✔Promissory Estoppel - ✔✔A doctrine that prevents a party from going back on a
promise that another party relied upon to their detriment.
✔✔Prospectus - ✔✔A document that provides details about a security offering to
potential investors.
✔✔Quotas - ✔✔Government-imposed limits on the quantity of goods that can be
imported or exported.
✔✔Ratification - ✔✔Affirming a previously unauthorized act.
✔✔Reformation - ✔✔Court-ordered modification of a contract to reflect the parties' true
intent.
✔✔Reporters - ✔✔Books where court decisions are published.
✔✔Rescission - ✔✔Cancellation of a contract.
✔✔Respondeat Superior - ✔✔The principle that an employer is liable for the actions of
their employees within the scope of their employment.
✔✔Revocation - ✔✔The withdrawal of an offer by the offeror.
✔✔Search Warrant - ✔✔A legal document authorizing law enforcement to search a
specific location.
