WGU BUSINESS LAW FOR ACCOUNTANTS - D216 EXAM
2025 |170 QUESTIONS WITH ACCURATE SOLUTIONS
1. Why is consideration important for a contract to be legally binding?
Consideration is important because it ensures that something of
value is exchanged, making the contract enforceable.
Consideration is important because it outlines the terms of the
agreement.
Consideration is important because it provides a written record of
the contract.
Consideration is important because it defines the parties involved
in the contract.
2. A service mark is:
A credit that appears at the end of a motion picture.
The equivalent of a suggestive trademark.
A copyrighted piece of literary work.
Essentially a trademark that is used to distinguish the services of
one person or company from those of another.
3. Describe the process and implications of an assignment in contract law.
An assignment involves transferring rights from one party to
another, which can affect the obligations and benefits under the
contract.
An assignment is a legal term that refers to the creation of a new
contract.
An assignment is a method of terminating a contract without any
further obligations.
, An assignment allows a party to change the terms of the contract
unilaterally.
4. Describe the process that occurs after a writ of execution is issued.
The sheriff is instructed to seize and sell the debtor's non-
exempt property to satisfy a judgment.
The creditor must wait for a year before filing for a writ of
execution.
The debtor is given a chance to appeal the judgment before any
action is taken.
The court reviews the debtor's financial status before issuing a
judgment.
5. In a bankruptcy case, if a debtor made a payment to a preferred creditor
shortly before filing, what legal implications could arise?
The payment may be subject to reversal as a preferential
transfer.
The payment will be honored and the creditor will receive the full
amount.
The payment will automatically discharge the debtor's obligation.
The payment will be considered a secured transaction.
6. Describe the significance of a formal contract in legal transactions.
A formal contract is less important than informal agreements in
legal transactions.
A formal contract is irrelevant in most business dealings.
A formal contract is only necessary for international agreements.
A formal contract is significant because it ensures that certain
legal requirements are met, providing clarity and enforceability
in transactions.
,7. What is the primary purpose of the Full Faith and Credit Clause in the U.S.
Constitution?
To provide a framework for federal law supremacy.
To ensure that rights established in one state are honored by
other states.
To establish the process for amending the Constitution.
To regulate interstate commerce.
8. A contract that requires special forms and/or signatures is known as a(n)
_ __________ contract.
Objective
Formal
Informal
Executory
9. Describe the significance of a preferred creditor in the context of
bankruptcy proceedings.
A preferred creditor has received a preferential transfer, which
may affect the distribution of assets during bankruptcy.
A preferred creditor is someone who has a legal claim to the
debtor's property.
A preferred creditor is the first to be paid in full before any other
creditors.
A preferred creditor is a creditor who has waived their rights in
bankruptcy.
10. In a business scenario where a company must decide whether to cut
costs by outsourcing labor to a country with lower wages, how would
outcome-based ethics guide their decision-making process?
, By evaluating the potential impacts on local employees, the
community, and the overall reputation of the company.
By focusing solely on maximizing profit margins for shareholders.
By considering the historical success of outsourcing in similar
companies.
By ensuring that the decision complies with all local labor laws.
11. Describe the role of the respondent in equity practice and how it differs
from that of the plaintiff.
The respondent initiates the action, while the plaintiff answers the
complaint.
The respondent and plaintiff have the same role in equity
practice.
The respondent is the party who files a complaint, while the
plaintiff is the one who defends it.
The respondent is the party who answers a complaint, while the
plaintiff initiates the action.
12. A covenant not to sue is:
against public policy.
permitted only if the party involved is represented by an attorney.
used only by medical doctors in malpractice cases.
an agreement to substitute a contractual obligation for some
other type of legal action based on a valid claim.
13. Describe the purpose of a search warrant in the context of law
enforcement.
A search warrant is a document that outlines the charges against
a suspect.
2025 |170 QUESTIONS WITH ACCURATE SOLUTIONS
1. Why is consideration important for a contract to be legally binding?
Consideration is important because it ensures that something of
value is exchanged, making the contract enforceable.
Consideration is important because it outlines the terms of the
agreement.
Consideration is important because it provides a written record of
the contract.
Consideration is important because it defines the parties involved
in the contract.
2. A service mark is:
A credit that appears at the end of a motion picture.
The equivalent of a suggestive trademark.
A copyrighted piece of literary work.
Essentially a trademark that is used to distinguish the services of
one person or company from those of another.
3. Describe the process and implications of an assignment in contract law.
An assignment involves transferring rights from one party to
another, which can affect the obligations and benefits under the
contract.
An assignment is a legal term that refers to the creation of a new
contract.
An assignment is a method of terminating a contract without any
further obligations.
, An assignment allows a party to change the terms of the contract
unilaterally.
4. Describe the process that occurs after a writ of execution is issued.
The sheriff is instructed to seize and sell the debtor's non-
exempt property to satisfy a judgment.
The creditor must wait for a year before filing for a writ of
execution.
The debtor is given a chance to appeal the judgment before any
action is taken.
The court reviews the debtor's financial status before issuing a
judgment.
5. In a bankruptcy case, if a debtor made a payment to a preferred creditor
shortly before filing, what legal implications could arise?
The payment may be subject to reversal as a preferential
transfer.
The payment will be honored and the creditor will receive the full
amount.
The payment will automatically discharge the debtor's obligation.
The payment will be considered a secured transaction.
6. Describe the significance of a formal contract in legal transactions.
A formal contract is less important than informal agreements in
legal transactions.
A formal contract is irrelevant in most business dealings.
A formal contract is only necessary for international agreements.
A formal contract is significant because it ensures that certain
legal requirements are met, providing clarity and enforceability
in transactions.
,7. What is the primary purpose of the Full Faith and Credit Clause in the U.S.
Constitution?
To provide a framework for federal law supremacy.
To ensure that rights established in one state are honored by
other states.
To establish the process for amending the Constitution.
To regulate interstate commerce.
8. A contract that requires special forms and/or signatures is known as a(n)
_ __________ contract.
Objective
Formal
Informal
Executory
9. Describe the significance of a preferred creditor in the context of
bankruptcy proceedings.
A preferred creditor has received a preferential transfer, which
may affect the distribution of assets during bankruptcy.
A preferred creditor is someone who has a legal claim to the
debtor's property.
A preferred creditor is the first to be paid in full before any other
creditors.
A preferred creditor is a creditor who has waived their rights in
bankruptcy.
10. In a business scenario where a company must decide whether to cut
costs by outsourcing labor to a country with lower wages, how would
outcome-based ethics guide their decision-making process?
, By evaluating the potential impacts on local employees, the
community, and the overall reputation of the company.
By focusing solely on maximizing profit margins for shareholders.
By considering the historical success of outsourcing in similar
companies.
By ensuring that the decision complies with all local labor laws.
11. Describe the role of the respondent in equity practice and how it differs
from that of the plaintiff.
The respondent initiates the action, while the plaintiff answers the
complaint.
The respondent and plaintiff have the same role in equity
practice.
The respondent is the party who files a complaint, while the
plaintiff is the one who defends it.
The respondent is the party who answers a complaint, while the
plaintiff initiates the action.
12. A covenant not to sue is:
against public policy.
permitted only if the party involved is represented by an attorney.
used only by medical doctors in malpractice cases.
an agreement to substitute a contractual obligation for some
other type of legal action based on a valid claim.
13. Describe the purpose of a search warrant in the context of law
enforcement.
A search warrant is a document that outlines the charges against
a suspect.
