D432 PA Exam Questions with Verified Correct
Answers
Which description is a characteristic of a corporation?
Ease of transferring ownership
Which description is characteristic of a sole proprietorship?
Ease of dissolution
Which act prohibits unfair or deceptive acts affecting commerce?
The Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant (CPA)
not affiliated with the company to provide an objective opinion. Which form should the
company use for this report?
Form 10-K
A U.S. company operating in Country I has detected instances of child labor in one of
their manufacturing facilities abroad. What is the reason for this occurrence?
Local governments are sometimes unwilling or unable to enforce laws and regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the product.
The FTC sends the company a consent order. What is the objective of the consent
order?
To get the company to comply voluntarily
,How does the Bureau of Consumer Protection help protect consumers against unfair
trade practices?
By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they had to
buy a phone plan at a 100% inflated price to be eligible for the offer.Which unfair trade
practice did the store adopt?
Misleading price information
A consumer approached a shop to purchase edible oil and enquire about its ingredients
before making a final purchase. A seller did not disclose the ingredients of an edible
product before accepting payment for it.Which unfair trade practice did the seller
adopt?
Failing to disclose pertinent information
What is used to measure the sustainability of an organization's social responsibility
efforts?
Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a direct
benefit that the company will have due to this practice?
Positive benevolent halo effect
An employee at a company arrives consistently late. The employee's manager checks the
company policy about tardiness. The policy states that employees who arrive late may
be subject to disciplinary action, up to and including termination. The manager also
, remembers hearing another employee being verbally warned about a similar
situation.What should be the first action by the manager?
Consult with HR.
One of a company's items has been in production for six months but is still sold stating
"new." Which unfair practice is the company engaged in, according to the Federal
Trade Commission Act?
Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees in
the year 2014. In 2015, the CEO of the company took a pay cut to raise employee
salaries. This led the employees to stay and work hard to achieve the organizational
goals. What effect did the company likely experience after the change?
Revenue and profits increased.
An employee of a manufacturing company is married to a member of the military.
Their spouse is seriously injured and requires round-the-clock care at home. The
employee requests a leave of 20 weeks. What is a likely outcome considering the Family
and Medical Leave Act (FMLA)?
The employer must accept the request since this is for a family member of a veteran.
A delivery driver runs a red light and causes an accident, injuring another driver. The
injured driver sues both the delivery driver and the driver's employing restaurant chain
for damages. The restaurant chain claims they are not responsible for the driver's
actions as the driver is an independent contractor and not an employee. Which legal
doctrine could hold the restaurant chain responsible for the driver's actions?
Vicarious liability
Answers
Which description is a characteristic of a corporation?
Ease of transferring ownership
Which description is characteristic of a sole proprietorship?
Ease of dissolution
Which act prohibits unfair or deceptive acts affecting commerce?
The Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant (CPA)
not affiliated with the company to provide an objective opinion. Which form should the
company use for this report?
Form 10-K
A U.S. company operating in Country I has detected instances of child labor in one of
their manufacturing facilities abroad. What is the reason for this occurrence?
Local governments are sometimes unwilling or unable to enforce laws and regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the product.
The FTC sends the company a consent order. What is the objective of the consent
order?
To get the company to comply voluntarily
,How does the Bureau of Consumer Protection help protect consumers against unfair
trade practices?
By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they had to
buy a phone plan at a 100% inflated price to be eligible for the offer.Which unfair trade
practice did the store adopt?
Misleading price information
A consumer approached a shop to purchase edible oil and enquire about its ingredients
before making a final purchase. A seller did not disclose the ingredients of an edible
product before accepting payment for it.Which unfair trade practice did the seller
adopt?
Failing to disclose pertinent information
What is used to measure the sustainability of an organization's social responsibility
efforts?
Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a direct
benefit that the company will have due to this practice?
Positive benevolent halo effect
An employee at a company arrives consistently late. The employee's manager checks the
company policy about tardiness. The policy states that employees who arrive late may
be subject to disciplinary action, up to and including termination. The manager also
, remembers hearing another employee being verbally warned about a similar
situation.What should be the first action by the manager?
Consult with HR.
One of a company's items has been in production for six months but is still sold stating
"new." Which unfair practice is the company engaged in, according to the Federal
Trade Commission Act?
Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees in
the year 2014. In 2015, the CEO of the company took a pay cut to raise employee
salaries. This led the employees to stay and work hard to achieve the organizational
goals. What effect did the company likely experience after the change?
Revenue and profits increased.
An employee of a manufacturing company is married to a member of the military.
Their spouse is seriously injured and requires round-the-clock care at home. The
employee requests a leave of 20 weeks. What is a likely outcome considering the Family
and Medical Leave Act (FMLA)?
The employer must accept the request since this is for a family member of a veteran.
A delivery driver runs a red light and causes an accident, injuring another driver. The
injured driver sues both the delivery driver and the driver's employing restaurant chain
for damages. The restaurant chain claims they are not responsible for the driver's
actions as the driver is an independent contractor and not an employee. Which legal
doctrine could hold the restaurant chain responsible for the driver's actions?
Vicarious liability
