1-Actions brought by the shareholders to cancel a corporate charter are called quo warranto proceedings.

Group of answer choices

True

False

2-Which of the following is a feature of the free enterprise system?

Group of answer choices

It is a socialist principle.

It is a private and consensual system of production and distribution that is relatively free of governmental interference.

It has worked so well and is self-regulating that it has not required any governmental intervention to protect workers, competition, and consumers.

It is a public and involuntary system of production and distribution that involves significant governmental regulation.

3-Jerome wants to form a business entity with Cedric and Shawn. Jerome will make most if not all of the business decisions and is okay with taking on some liability exposure in exchange for higher returns. Cedric and Shawn don't want to make any business decisions; they just want to invest and make money, and the most they want to lose is the amount of their investment in the business. What business entity makes the most sense for these folks?

Group of answer choices

general partnership

corporation

limited partnership

limited liability company

4-The Clayton Act, which amended the Sherman Act, expanded antitrust regulations to prohibit the following activities except:

Group of answer choices

company splits

exclusive-dealing contracts

price discrimination

tying arrangements

5-The artificial setting or maintaining of prices at a certain level against the workings of the free market is known as what?

Group of answer choices

predatory pricing

price fixing

concerted action

monopoly power

6-Principals' duties to agents include

Group of answer choices

all of the above

loyalty

honesty

reimbursement

7-What type of business organization calls for owners sharing profits equally?

Group of answer choices

general partnership

secret partnership

partnership by estoppel

limited partnership

8-Court have found likely monopoly power, or the power of a business to fix prices unilaterally or to exclude competition, when a business controls how much market share?

Group of answer choices

51-69%

50% or less

70% or more

90% or more

9-Under Becca's specific duty of "loyalty" to Katherine, when Becca is Katherine's agent,

Group of answer choices

Becca must perform all the lawful tasks Katherine assigns her.

none of the above

Becca must notify Katherine of any activities involving the agency relationship.

Becca must act to serve Katherine's interests, and place Katherine's interests before her own, so that there is no conflict of interest.

10-Which of the following is not a main federal antitrust law?

Group of answer choices

Junkin Act

Clayton Act

Federal Trade Commission Act

Sherman Act

11-In lieu of declaring a dividend for shareholders, a board can perform all of the following except:

Group of answer choices

purchase additional assets

pay itself all corporate profits that would have gone to the shareholders

reinvest profits into the corporation

pay for a capital expense

12-An agent's duties to a principal include the duty of

Group of answer choices

all the above

loyalty

obedience

accounting

13-What is the term for the minimum number of shareholders who must be present to take a vote?

Group of answer choices

quorum

proxy

majority

bylaws

14-Preferred stock owners often don't have a voting right in exchange for a higher dividend amount or preference in receiving dividends.

Group of answer choices

True

False

15-Who brings a derivative suit against a third party to protect the best interest of the corporation?

Group of answer choices

governmental entity

officer

director

shareholder

16-An agency relationship can be formed by

Group of answer choices

agreement

neither A nor B

both A and B

ratification

17-One advantage of the sole proprietorship is that the owner's losses are limited to the amount he or she has invested into the enterprise.

Group of answer choices

True

False

18-S-corporations are the most common business form in the United States.

Group of answer choices

True

False

19-Congress passed the Federal Trade Commission Act, in part, to enforce antitrust laws.

Group of answer choices

True

False

20-Match the following corporate legal structure participant to the appropriate description.

Group of answer choices

director [ Choose ]

1-responsible for the daily operations of the corporation

2-person appointed or elected to manage the business of a corporation and supervise those responsible for the daily operations of the corporation

3-owners of the corporation who are not entitled to manage the daily operations of the corporation

officer [ Choose]

1- responsible for the daily operations of the corporation

2-person appointed or elected to manage the business of a corporation and supervise those responsible for the daily operations of the corporation

3-owners of the corporation who are not entitled to manage the daily operations of the corporation

shareholder [ Choose ]

1-responsible for the daily operations of the corporation

2-person appointed or elected to manage the business of a corporation and supervise those responsible for the daily operations of the corporation

3-owners of the corporation who are not entitled to manage the daily operations of the corporation