WGU - D432 Section 1 Study Guide
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Case Law - CORRECT ANSWER - used by judges to inform their own rulings
Precedent - CORRECT ANSWER - previous court rulings on similar cases, when
determining the ruling in their own cases
Wheeler-Lea Act - CORRECT ANSWER - Law grants the Federal Trade Commission the
authority to stop false food- and drug-related advertising
Lanham Act - CORRECT ANSWER -
Section 12(g) of Securities Exchange Act of 1934 - CORRECT ANSWER - Companies
with more than $10 million in assets whose securities are held by more than 500 owners must
file annual and other periodic reports with the SEC
Form 8-K - CORRECT ANSWER - the report that companies must file with the SEC to
announce major events that shareholders should know about
Dodd-Frank Act - CORRECT ANSWER - Law gives whistleblowers security when they
report alleged Foreign Corrupt Practices Act violations
Partnership - CORRECT ANSWER - involving two or more individuals who agree to
operate a business together for profit, can be both advantageous and risky
Sole Proprietorship - CORRECT ANSWER - business established, owned, operated, and
often financed by one person
, General Partnership - CORRECT ANSWER - all partners share in the management and
profits
Limited Partnership - CORRECT ANSWER - Has two types of partners; one or more
general or limited partners
General Partner - CORRECT ANSWER - have unlimited liability; maintain operational
control
Limited Partner - CORRECT ANSWER - liability is limited to the amount of their
investment; do not take part in the day-to-day management of the firm, help finance the business
Limited Liability Partnerships (LLP) - CORRECT ANSWER - like general partnership
except that partners are not held responsible for the business debt and liabilities
Limited Liability Limited Partnership (LLLP) - CORRECT ANSWER - a limited
partnership with the addition of limited liability, hence protecting the general partner from the
debt and liabilities of the partnership
Corporation - CORRECT ANSWER - A legal entity subject to the laws of the state in
which it is formed, where the right to operate as a business is issued by state charter.
Criminal Cases - CORRECT ANSWER - occur when an individual commits a crime
against the public, which is punishable by incarceration, fines, and other penalties
Civil cases - CORRECT ANSWER - crimes against an individual in which harm to the
individual has occurred; the penalties are cash remedies to the injured party
contract law - CORRECT ANSWER - Rules and regulations focused on the execution of a
contract
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Case Law - CORRECT ANSWER - used by judges to inform their own rulings
Precedent - CORRECT ANSWER - previous court rulings on similar cases, when
determining the ruling in their own cases
Wheeler-Lea Act - CORRECT ANSWER - Law grants the Federal Trade Commission the
authority to stop false food- and drug-related advertising
Lanham Act - CORRECT ANSWER -
Section 12(g) of Securities Exchange Act of 1934 - CORRECT ANSWER - Companies
with more than $10 million in assets whose securities are held by more than 500 owners must
file annual and other periodic reports with the SEC
Form 8-K - CORRECT ANSWER - the report that companies must file with the SEC to
announce major events that shareholders should know about
Dodd-Frank Act - CORRECT ANSWER - Law gives whistleblowers security when they
report alleged Foreign Corrupt Practices Act violations
Partnership - CORRECT ANSWER - involving two or more individuals who agree to
operate a business together for profit, can be both advantageous and risky
Sole Proprietorship - CORRECT ANSWER - business established, owned, operated, and
often financed by one person
, General Partnership - CORRECT ANSWER - all partners share in the management and
profits
Limited Partnership - CORRECT ANSWER - Has two types of partners; one or more
general or limited partners
General Partner - CORRECT ANSWER - have unlimited liability; maintain operational
control
Limited Partner - CORRECT ANSWER - liability is limited to the amount of their
investment; do not take part in the day-to-day management of the firm, help finance the business
Limited Liability Partnerships (LLP) - CORRECT ANSWER - like general partnership
except that partners are not held responsible for the business debt and liabilities
Limited Liability Limited Partnership (LLLP) - CORRECT ANSWER - a limited
partnership with the addition of limited liability, hence protecting the general partner from the
debt and liabilities of the partnership
Corporation - CORRECT ANSWER - A legal entity subject to the laws of the state in
which it is formed, where the right to operate as a business is issued by state charter.
Criminal Cases - CORRECT ANSWER - occur when an individual commits a crime
against the public, which is punishable by incarceration, fines, and other penalties
Civil cases - CORRECT ANSWER - crimes against an individual in which harm to the
individual has occurred; the penalties are cash remedies to the injured party
contract law - CORRECT ANSWER - Rules and regulations focused on the execution of a
contract
