WGU D216 BUSINESS LAW FOR
ACCOUNTANTS: OA OBJECTIVE
ASSESSMENT (LATEST 2026–2027 UPDATE),
WITH CORRECT/ACCURATE ANSWERS
WGU D216 – BUSINESS LAW FOR
ACCOUNTANTS
SECTION 1 — QUESTIONS 1–25
Question 1
Which of the following activities is considered illegal under federal securities law?
A. Testing the waters
B. Insider trading
C. Filing a prospectus
D. Issuing Rule 144 stock
Correct Answer: B
Rationale 1:
Insider trading involves buying or selling securities based on material, nonpublic information, which
violates the Securities Exchange Act of 1934.
,Question 2
Which activity allows a company to gauge investor interest before filing a registration statement?
A. Insider trading
B. Testing the waters
C. Prospectus misrepresentation
D. Market manipulation
Correct Answer: B
Rationale 2:
“Testing the waters” permits limited communication with potential investors prior to formal registration, as
allowed under securities regulations.
Question 3
Which of the following would constitute securities fraud?
A. Filing an amended prospectus
B. Insider disclosures
C. Prospectus misrepresentation
D. Issuing restricted stock
Correct Answer: C
Rationale 3:
A prospectus that contains false or misleading statements violates federal securities law and exposes issuers
to civil and criminal liability.
,Question 4
Rule 144 primarily governs which of the following?
A. Insider trading penalties
B. Registration exemptions
C. Sale of restricted and control securities
D. Corporate governance disclosures
Correct Answer: C
Rationale 4:
Rule 144 provides conditions under which restricted or control securities may be sold without SEC
registration.
Question 5
Which type of trademark never receives legal protection?
A. Descriptive marks
B. Arbitrary marks
C. Personal name marks
D. Generic marks
Correct Answer: D
Rationale 5:
Generic marks identify the product itself (e.g., “Computer” for computers) and cannot distinguish source,
making them unprotectable.
Question 6
Which trademark category receives the highest level of protection?
, A. Descriptive
B. Generic
C. Arbitrary
D. Personal name
Correct Answer: C
Rationale 6:
Arbitrary marks use common words in an unrelated way (e.g., “Apple” for computers), making them highly
distinctive and strongly protected.
Question 7
Which bankruptcy filing is the least expensive and least complex for debtors?
A. Chapter 11 (Reorganization)
B. Chapter 13 (Repayment Plan)
C. Creditor-initiated Chapter 11
D. Chapter 7 (Liquidation)
Correct Answer: D
Rationale 7:
Chapter 7 is the simplest and least expensive bankruptcy process, involving liquidation of nonexempt assets
and discharge of debts.
Question 8
Which bankruptcy chapter allows individuals with regular income to repay debts over time?
A. Chapter 7
B. Chapter 11
C. Chapter 13
D. Chapter 9
ACCOUNTANTS: OA OBJECTIVE
ASSESSMENT (LATEST 2026–2027 UPDATE),
WITH CORRECT/ACCURATE ANSWERS
WGU D216 – BUSINESS LAW FOR
ACCOUNTANTS
SECTION 1 — QUESTIONS 1–25
Question 1
Which of the following activities is considered illegal under federal securities law?
A. Testing the waters
B. Insider trading
C. Filing a prospectus
D. Issuing Rule 144 stock
Correct Answer: B
Rationale 1:
Insider trading involves buying or selling securities based on material, nonpublic information, which
violates the Securities Exchange Act of 1934.
,Question 2
Which activity allows a company to gauge investor interest before filing a registration statement?
A. Insider trading
B. Testing the waters
C. Prospectus misrepresentation
D. Market manipulation
Correct Answer: B
Rationale 2:
“Testing the waters” permits limited communication with potential investors prior to formal registration, as
allowed under securities regulations.
Question 3
Which of the following would constitute securities fraud?
A. Filing an amended prospectus
B. Insider disclosures
C. Prospectus misrepresentation
D. Issuing restricted stock
Correct Answer: C
Rationale 3:
A prospectus that contains false or misleading statements violates federal securities law and exposes issuers
to civil and criminal liability.
,Question 4
Rule 144 primarily governs which of the following?
A. Insider trading penalties
B. Registration exemptions
C. Sale of restricted and control securities
D. Corporate governance disclosures
Correct Answer: C
Rationale 4:
Rule 144 provides conditions under which restricted or control securities may be sold without SEC
registration.
Question 5
Which type of trademark never receives legal protection?
A. Descriptive marks
B. Arbitrary marks
C. Personal name marks
D. Generic marks
Correct Answer: D
Rationale 5:
Generic marks identify the product itself (e.g., “Computer” for computers) and cannot distinguish source,
making them unprotectable.
Question 6
Which trademark category receives the highest level of protection?
, A. Descriptive
B. Generic
C. Arbitrary
D. Personal name
Correct Answer: C
Rationale 6:
Arbitrary marks use common words in an unrelated way (e.g., “Apple” for computers), making them highly
distinctive and strongly protected.
Question 7
Which bankruptcy filing is the least expensive and least complex for debtors?
A. Chapter 11 (Reorganization)
B. Chapter 13 (Repayment Plan)
C. Creditor-initiated Chapter 11
D. Chapter 7 (Liquidation)
Correct Answer: D
Rationale 7:
Chapter 7 is the simplest and least expensive bankruptcy process, involving liquidation of nonexempt assets
and discharge of debts.
Question 8
Which bankruptcy chapter allows individuals with regular income to repay debts over time?
A. Chapter 7
B. Chapter 11
C. Chapter 13
D. Chapter 9
