Multiple Choice
1. Which area of law is most likely to impact directly the finance and accounting
departments of a company? a. products liability b. employment discrimination
c. credit regulation d. environmental law e. all of these are likely to impact
about the same
ANSWER: c POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
2. Which of these issues may impact a company’s operations? a. international
issues b. political issues c. ethical issues d. legal issues e. all of these issues can
impact operations
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
3. Which is generally recognized as the best (most correct) definition of law?
a. a body of rules of action or conduct prescribed by controlling authority, and
having binding legal force b. that which must be obeyed and followed by mem-
bers of a society subject to sanctions or legal consequences c. the circumstances
in which the public force is brought to bear through the courts d. a rule of
conduct that justifies a prediction that it likely will be enforced by the courts
if its authority is challenged e. all of the other choices are correct; there is no
one agreed upon best definition
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis 4. Which of the
following is an accepted definition of law? a. a body of rules of action or con-
duct prescribed by controlling authority, and having binding legal force b. a
body of rules of action or conduct prescribed by society, but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by
international society d. a body of rules of action or conduct prescribed by the
Supreme Court, and having binding legal force e. none of the other choices
ANSWER: a POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
5. Which of the following is an accepted definition of law? a. a body of rules
of action or conduct prescribed by society, but lacking legal force b. that which
must be obeyed and followed by members of a society subject to sanctions or
legal consequences c. that which must be obeyed and followed by the controlling
1
,authority of a country d. a body of rules of action or conduct prescribed by the
Supreme Court, and having binding legal force e. none of the other choices
ANSWER: b POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
6. In an orderly society, law and the legal system help to: a. influence the
behavior of members of society b. resolve disputes c. maintain the important
values of society d. provide a way for important social changes to take effect e.
all of the answers are part of the role of law
ANSWER: e 7. Enforcement of law in a society is important because it: a. pro-
vides some predictability and uniformity to the boundaries of acceptable conduct
b. promotes social well-being c. leads to higher literacy rates d. prevents large
disparities in income e. none of the other choices
ANSWER: a POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
8. Which of the following is not a part of the rules that govern behavior in most
nations: a. formal rules b. informal rules c. social customs d. ethics e. all of
the other choices are part of the rules
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
9. Both and are part of the rules that govern behavior in most nations. a.
philosophy and sociology b. psychology and ethics c. formal rules and informal
rules d. all of the other specific choices e. none of the other specific choices
ANSWER: c POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis 10. Both and are
part of the rules that govern behavior in most nations. a. philosophy and soci-
ology b. customs and ethics c. formal rules and psychology d. all of the other
specific choices e. none of the other specific choices
ANSWER: b POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
11. Both and are part of the rules that govern behavior in most nations. a.
customs and informal rules b. formal rules and ethics c. formal rules and
2
,informal rules d. all of the other specific choices e. none of the other specific
choices
ANSWER: d POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
12. Which of the following is a part of the rules that govern behavior in most
nations: a. the Old Testament b. the New Testament c. social customs d. the
Torah e. all of the other choices are parts of the rules
ANSWER: c 13. Which of the following is a part of the rules that govern
behavior in most nations: a. ethics b. statutory law c. social customs d. all of
the choices are parts of the rules e. none of the other choices are correct
ANSWER: d POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
14. Which of the following is NOT a part of the rules that govern behavior in
most nations: a. ethics b. formal rules c. social customs d. administrative rules
e. all of the other choices are parts of the rules
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
15. Which of the following is NOT generally considered to be a part of the rules
that govern behavior in most nations: a. ethics b. psychology c. social customs
d. administrative rules e. all of the other choices are NOT parts of the rules
ANSWER: b 16. By the use of laws and the legal system, the government
can: a. change acceptable behavior b. instruct people on what is allowed in
certain circumstances c. encourage certain types of business activity d. impose
sanctions to try to eliminate certain business activities e. all of the other choices
are included
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
17. Which of the following statements is true? a. law imposes structure on soci-
ety by limiting activities that hurt the ”public interest” b. the sale of marijuana
is illegal worldwide c. the sale of alcoholic beverages is legal worldwide d. laws
do not apply to individuals; only to society as a whole e. all of the other choices
are correct
3
, ANSWER: a POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
18. Which of the following statements about law is true? a. law must be
approved by the ”will of the people” b. the sale of marijuana is illegal worldwide
c. he sale of alcoholic beverages is legal worldwide d. formal law is respected in
all nations e. none of the other choices are necessarily correct
ANSWER: e 19. Which of the following statements is true? a. formal law is
respected in all nations b. the sale of marijuana is illegal worldwide c. the sale
of alcoholic beverages is legal worldwide d. law imposes structure on society by
limiting activities that hurt the ”public interest” e. all of the other choices are
correct
ANSWER: d POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
20. Which of the following statements is true? a. law applies to individuals only;
not to groups or society as a whole b. the sale of marijuana is illegal worldwide
c. the sale of alcoholic beverages is legal worldwide d. formal law is respected
by all nations e. none of the other choices are true
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
21. Making marijuana illegal in the United States and alcohol illegal in Saudi
Arabia are both examples of: a. how law applies to individuals and not to groups
or society as a whole b. how governments can use law to enforce different social
norms c. how formal law is respected in all nations d. how law applies to both
individuals and to groups equally e. none of the other choices
ANSWER: b 22. Making marijuana illegal in the United States and alcohol
illegal in Saudi Arabia are both examples of: a. how law applies to individuals
and not to groups or society as a whole b. how law applies to both individuals
and to groups equally c. how formal law is respected by all nations d. all of the
other specific choices e. none of the other specific choices
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
23. Laws are important in societies made up of people with differing desire and
values because: a. disagreements are inevitable and laws is an attempt to settle
4
1. Which area of law is most likely to impact directly the finance and accounting
departments of a company? a. products liability b. employment discrimination
c. credit regulation d. environmental law e. all of these are likely to impact
about the same
ANSWER: c POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
2. Which of these issues may impact a company’s operations? a. international
issues b. political issues c. ethical issues d. legal issues e. all of these issues can
impact operations
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
3. Which is generally recognized as the best (most correct) definition of law?
a. a body of rules of action or conduct prescribed by controlling authority, and
having binding legal force b. that which must be obeyed and followed by mem-
bers of a society subject to sanctions or legal consequences c. the circumstances
in which the public force is brought to bear through the courts d. a rule of
conduct that justifies a prediction that it likely will be enforced by the courts
if its authority is challenged e. all of the other choices are correct; there is no
one agreed upon best definition
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis 4. Which of the
following is an accepted definition of law? a. a body of rules of action or con-
duct prescribed by controlling authority, and having binding legal force b. a
body of rules of action or conduct prescribed by society, but lacking legal force
c. a body of rules of action or conduct prescribed by courts and sanction by
international society d. a body of rules of action or conduct prescribed by the
Supreme Court, and having binding legal force e. none of the other choices
ANSWER: a POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
5. Which of the following is an accepted definition of law? a. a body of rules
of action or conduct prescribed by society, but lacking legal force b. that which
must be obeyed and followed by members of a society subject to sanctions or
legal consequences c. that which must be obeyed and followed by the controlling
1
,authority of a country d. a body of rules of action or conduct prescribed by the
Supreme Court, and having binding legal force e. none of the other choices
ANSWER: b POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
6. In an orderly society, law and the legal system help to: a. influence the
behavior of members of society b. resolve disputes c. maintain the important
values of society d. provide a way for important social changes to take effect e.
all of the answers are part of the role of law
ANSWER: e 7. Enforcement of law in a society is important because it: a. pro-
vides some predictability and uniformity to the boundaries of acceptable conduct
b. promotes social well-being c. leads to higher literacy rates d. prevents large
disparities in income e. none of the other choices
ANSWER: a POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
8. Which of the following is not a part of the rules that govern behavior in most
nations: a. formal rules b. informal rules c. social customs d. ethics e. all of
the other choices are part of the rules
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
9. Both and are part of the rules that govern behavior in most nations. a.
philosophy and sociology b. psychology and ethics c. formal rules and informal
rules d. all of the other specific choices e. none of the other specific choices
ANSWER: c POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis 10. Both and are
part of the rules that govern behavior in most nations. a. philosophy and soci-
ology b. customs and ethics c. formal rules and psychology d. all of the other
specific choices e. none of the other specific choices
ANSWER: b POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
11. Both and are part of the rules that govern behavior in most nations. a.
customs and informal rules b. formal rules and ethics c. formal rules and
2
,informal rules d. all of the other specific choices e. none of the other specific
choices
ANSWER: d POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
12. Which of the following is a part of the rules that govern behavior in most
nations: a. the Old Testament b. the New Testament c. social customs d. the
Torah e. all of the other choices are parts of the rules
ANSWER: c 13. Which of the following is a part of the rules that govern
behavior in most nations: a. ethics b. statutory law c. social customs d. all of
the choices are parts of the rules e. none of the other choices are correct
ANSWER: d POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
14. Which of the following is NOT a part of the rules that govern behavior in
most nations: a. ethics b. formal rules c. social customs d. administrative rules
e. all of the other choices are parts of the rules
ANSWER: e POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS:
United States - BUSPROG: Communication STATE STANDARDS: United
States - Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the
Key Functions of the Legal System KEYWORDS: Bloom’s: Knowledge
15. Which of the following is NOT generally considered to be a part of the rules
that govern behavior in most nations: a. ethics b. psychology c. social customs
d. administrative rules e. all of the other choices are NOT parts of the rules
ANSWER: b 16. By the use of laws and the legal system, the government
can: a. change acceptable behavior b. instruct people on what is allowed in
certain circumstances c. encourage certain types of business activity d. impose
sanctions to try to eliminate certain business activities e. all of the other choices
are included
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
17. Which of the following statements is true? a. law imposes structure on soci-
ety by limiting activities that hurt the ”public interest” b. the sale of marijuana
is illegal worldwide c. the sale of alcoholic beverages is legal worldwide d. laws
do not apply to individuals; only to society as a whole e. all of the other choices
are correct
3
, ANSWER: a POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
18. Which of the following statements about law is true? a. law must be
approved by the ”will of the people” b. the sale of marijuana is illegal worldwide
c. he sale of alcoholic beverages is legal worldwide d. formal law is respected in
all nations e. none of the other choices are necessarily correct
ANSWER: e 19. Which of the following statements is true? a. formal law is
respected in all nations b. the sale of marijuana is illegal worldwide c. the sale
of alcoholic beverages is legal worldwide d. law imposes structure on society by
limiting activities that hurt the ”public interest” e. all of the other choices are
correct
ANSWER: d POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
20. Which of the following statements is true? a. law applies to individuals only;
not to groups or society as a whole b. the sale of marijuana is illegal worldwide
c. the sale of alcoholic beverages is legal worldwide d. formal law is respected
by all nations e. none of the other choices are true
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
21. Making marijuana illegal in the United States and alcohol illegal in Saudi
Arabia are both examples of: a. how law applies to individuals and not to groups
or society as a whole b. how governments can use law to enforce different social
norms c. how formal law is respected in all nations d. how law applies to both
individuals and to groups equally e. none of the other choices
ANSWER: b 22. Making marijuana illegal in the United States and alcohol
illegal in Saudi Arabia are both examples of: a. how law applies to individuals
and not to groups or society as a whole b. how law applies to both individuals
and to groups equally c. how formal law is respected by all nations d. all of the
other specific choices e. none of the other specific choices
ANSWER: e POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS:
United States - BUSPROG: Analytic STATE STANDARDS: United States -
Universal - DISC: AICPA: BB-Legal TOPICS: A-Head: Law and the Key Func-
tions of the Legal System KEYWORDS: Bloom’s: Analysis
23. Laws are important in societies made up of people with differing desire and
values because: a. disagreements are inevitable and laws is an attempt to settle
4
