MGMT 254 EXAM 4 QUESTIONS AND ANSWERS | MGMT 254 EXAM 4 STUDY
GUIDE & PRACTICE TEST 2026/2027
Imagine that Purdue for the first time sent me, a faculty member, to Indianapolis with the Admissions
Office, so that high school juniors and seniors would have an opportunity to talk with a Purdue professor.
Purdue is hoping that more of these prospective students would pick Purdue. As a faculty member, I
have no right to award scholarships, but imagine that I told one high school junior that he was accepted
to Purdue, and he would receive a $15,000 scholarship for each of the four years at Purdue. Since
Purdue created an appearance of authority by giving me pamphlets and a spot with the Admissions staff
at this event in Indianapolis, and the high school junior accepts my offer of admission and the
scholarship, which is worth a total of $60,000. If the student gets the $60,000 scholarship, then: - ANS
✔✔B.
the faculty member would have to pay back to Purdue the $60,000, since there was apparent authority.
(?)
Imagine Twenty-Century Fox actually decided to produce a television show titled Purdue. The
producer/director interviewed hundreds of individuals for the roles in the movie to be produced here in
West Lafayette. The top actors for the show were Mel Gibson, Meryl Streep, Clint Eastwood, Bill Cosby,
Ellen DeGeneres, Della Reece, and Denzel Washington. All of the actors flew into our airport at the
university. The show is about an older white couple and one set of their parents. The best actors as the
female as one half of the couple were Streep and Washington, since they were looking for a female,
Streep got the role as the female lead even though for this role Washington was actually the better actor.
Gibson and Eastwood were the best actors for the male lead as one of the couple. Gibson got the role,
even though Eastwood, believe it or not, was better in the role, but Eastwood didn't get the role because
he was in hi - ANS ✔✔E.
None of the above.
If a provision of an insurance policy is ambiguous: - ANS ✔✔B.
it is interpreted against the insurer.
When a business owner uses an independent contractor to perform nonhazardous work, generally, the
owner ordinarily is: - ANS ✔✔E.
all of these.
Which of the following are exempt from the minimum wage provisions of the Fair Labor Standards Act
(FSLA). - ANS ✔✔A.
executive
C.
full-time baby-sitters
Dr. Caroline Johnson advertised for an "experienced receptionist, female preferred." Dr. Johnson is a
gynecologist and she believes that her patients feel more comfortable when greeted by a female
receptionist than when greeted by a male receptionist. Alex, a highly qualified job applicant applied for
, the advertised job, but was rejected because of his gender, even though he was the best candidate.
Under these facts, Johnson employs 30 people and has - ANS ✔✔B.
not violated the Civil Rights Act, since this is a BFOQ. (?)
E.
B & D.
Andy signed a contract to work as an at will employee of Forestry Enterprises for a period of three years.
Two members of the clergy witnessed the contract signing. Forestry Enterprises became dissatisfied with
the work of Andy although it could point to no wrongdoing or negligence on the part of Andy. Forestry
notified Andy that he was fired. Andy: - ANS ✔✔C.
can be fired, but will be entitled to damages if the discharge is a breach of contract.
E.
none of these
magine Twenty-Century Fox actually decided to produce a television show titled Purdue. The
producer/director interviewed hundreds of individuals for the roles in the movie to be produced here in
West Lafayette. The top actors for the show were Mel Gibson, Meryl Streep, Clint Eastwood, Bill Cosby,
Ellen DeGeneres, Della Reece, and Denzel Washington. All of the actors flew into our airport at the
university. The show is about an older white couple and one set of their parents. The best actors as the
female as one half of the couple were Streep and Washington, since they were looking for a female,
Streep got the role as the female lead even though for this role Washington was actually the better actor.
Gibson and Eastwood were the best actors for the male lead as one of the couple. Gibson got the role,
even though Eastwood, believe it or not, was better in the role, but Eastwood didn't get the role because
he was in his - ANS ✔✔E.
None of the above
(?)
When a supervisor seeks sexual favors in return for job benefits, such as the offer of promotion, which
was alleged in the article titled "Bombshell from Megyn Kelly: Ex-Fox News boss Roger Ailes offered
career boosts for 'sexual favors,' (Article found Here) this practice is called: - ANS ✔✔B.
quid pro quo sexual harassment.
If I am involved in a car accident, and it is my fault, what type of insurance do I need to pay for the
damage to the other person's car? - ANS ✔✔C.
liability insurance
A.
collision insurance
Imagine there is a professor, age 78, at a particular college that gets excellent student evaluations, and
receives exceptional performance reviews, but the college wants to hire younger faculty, so the school
forces this 78 year old professor to retire. This is illegal under - ANS ✔✔D.
illegal under the Age Discrimination Act.
See the attached article in which, actress Maggie Gyllenhaal told The Wrap Magazine that she was
turned down for a part because of her age (Article found Here). "I'm 37, and I was told recently I was too
GUIDE & PRACTICE TEST 2026/2027
Imagine that Purdue for the first time sent me, a faculty member, to Indianapolis with the Admissions
Office, so that high school juniors and seniors would have an opportunity to talk with a Purdue professor.
Purdue is hoping that more of these prospective students would pick Purdue. As a faculty member, I
have no right to award scholarships, but imagine that I told one high school junior that he was accepted
to Purdue, and he would receive a $15,000 scholarship for each of the four years at Purdue. Since
Purdue created an appearance of authority by giving me pamphlets and a spot with the Admissions staff
at this event in Indianapolis, and the high school junior accepts my offer of admission and the
scholarship, which is worth a total of $60,000. If the student gets the $60,000 scholarship, then: - ANS
✔✔B.
the faculty member would have to pay back to Purdue the $60,000, since there was apparent authority.
(?)
Imagine Twenty-Century Fox actually decided to produce a television show titled Purdue. The
producer/director interviewed hundreds of individuals for the roles in the movie to be produced here in
West Lafayette. The top actors for the show were Mel Gibson, Meryl Streep, Clint Eastwood, Bill Cosby,
Ellen DeGeneres, Della Reece, and Denzel Washington. All of the actors flew into our airport at the
university. The show is about an older white couple and one set of their parents. The best actors as the
female as one half of the couple were Streep and Washington, since they were looking for a female,
Streep got the role as the female lead even though for this role Washington was actually the better actor.
Gibson and Eastwood were the best actors for the male lead as one of the couple. Gibson got the role,
even though Eastwood, believe it or not, was better in the role, but Eastwood didn't get the role because
he was in hi - ANS ✔✔E.
None of the above.
If a provision of an insurance policy is ambiguous: - ANS ✔✔B.
it is interpreted against the insurer.
When a business owner uses an independent contractor to perform nonhazardous work, generally, the
owner ordinarily is: - ANS ✔✔E.
all of these.
Which of the following are exempt from the minimum wage provisions of the Fair Labor Standards Act
(FSLA). - ANS ✔✔A.
executive
C.
full-time baby-sitters
Dr. Caroline Johnson advertised for an "experienced receptionist, female preferred." Dr. Johnson is a
gynecologist and she believes that her patients feel more comfortable when greeted by a female
receptionist than when greeted by a male receptionist. Alex, a highly qualified job applicant applied for
, the advertised job, but was rejected because of his gender, even though he was the best candidate.
Under these facts, Johnson employs 30 people and has - ANS ✔✔B.
not violated the Civil Rights Act, since this is a BFOQ. (?)
E.
B & D.
Andy signed a contract to work as an at will employee of Forestry Enterprises for a period of three years.
Two members of the clergy witnessed the contract signing. Forestry Enterprises became dissatisfied with
the work of Andy although it could point to no wrongdoing or negligence on the part of Andy. Forestry
notified Andy that he was fired. Andy: - ANS ✔✔C.
can be fired, but will be entitled to damages if the discharge is a breach of contract.
E.
none of these
magine Twenty-Century Fox actually decided to produce a television show titled Purdue. The
producer/director interviewed hundreds of individuals for the roles in the movie to be produced here in
West Lafayette. The top actors for the show were Mel Gibson, Meryl Streep, Clint Eastwood, Bill Cosby,
Ellen DeGeneres, Della Reece, and Denzel Washington. All of the actors flew into our airport at the
university. The show is about an older white couple and one set of their parents. The best actors as the
female as one half of the couple were Streep and Washington, since they were looking for a female,
Streep got the role as the female lead even though for this role Washington was actually the better actor.
Gibson and Eastwood were the best actors for the male lead as one of the couple. Gibson got the role,
even though Eastwood, believe it or not, was better in the role, but Eastwood didn't get the role because
he was in his - ANS ✔✔E.
None of the above
(?)
When a supervisor seeks sexual favors in return for job benefits, such as the offer of promotion, which
was alleged in the article titled "Bombshell from Megyn Kelly: Ex-Fox News boss Roger Ailes offered
career boosts for 'sexual favors,' (Article found Here) this practice is called: - ANS ✔✔B.
quid pro quo sexual harassment.
If I am involved in a car accident, and it is my fault, what type of insurance do I need to pay for the
damage to the other person's car? - ANS ✔✔C.
liability insurance
A.
collision insurance
Imagine there is a professor, age 78, at a particular college that gets excellent student evaluations, and
receives exceptional performance reviews, but the college wants to hire younger faculty, so the school
forces this 78 year old professor to retire. This is illegal under - ANS ✔✔D.
illegal under the Age Discrimination Act.
See the attached article in which, actress Maggie Gyllenhaal told The Wrap Magazine that she was
turned down for a part because of her age (Article found Here). "I'm 37, and I was told recently I was too
