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D432 PA Questions and Correct Answers
Which description is a characteristic of a corporation? Ans: Ease
of transferring ownership
Which description is characteristic of a sole proprietorship? Ans:
Ease of dissolution
Which act prohibits unfair or deceptive acts affecting commerce?
Ans: 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? Ans: 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
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the reason for this occurrence? Ans: 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? Ans: To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect
consumers against unfair trade practices? Ans: 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? Ans: Misleading price information
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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?
Ans: Failing to disclose pertinent information
What is used to measure the sustainability of an organization's
social responsibility efforts? Ans: 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? Ans: 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? Ans: Consult with HR.
© 2025 All rights reserved
D432 PA Questions and Correct Answers
Which description is a characteristic of a corporation? Ans: Ease
of transferring ownership
Which description is characteristic of a sole proprietorship? Ans:
Ease of dissolution
Which act prohibits unfair or deceptive acts affecting commerce?
Ans: 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? Ans: 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
© 2025 All rights reserved
, 2 | Page
the reason for this occurrence? Ans: 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? Ans: To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect
consumers against unfair trade practices? Ans: 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? Ans: Misleading price information
© 2025 All rights reserved
, 3 | Page
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?
Ans: Failing to disclose pertinent information
What is used to measure the sustainability of an organization's
social responsibility efforts? Ans: 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? Ans: 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? Ans: Consult with HR.
© 2025 All rights reserved
