1.Which type of relief does chapter 7 of the bankruptcy code provide to a debtor?

a.The debtor formulates a repayment plan of adjustment of debts owed to creditors and a discharge of the debts upon completion of the plan.

b.The debtor formulates a reorganizational plan with the creditors of secured debts and a discharge of the debts upon completion of the plan

c.The debtor formulates a reorganization plan the creditors of unsecured debts a discharge of the debts upon completion of the plan

d.The debtor has an opportunity for a fresh start as most or all debts are discharged on liquidation and distribution to creditors

2.What is the eligibility requirement for a small-business debtor to avoid the appointment of the creditor's committee?

a.Small-business debtors that own real estate with liabilities under $2.7 million

b.Small-business debtors that own or manage real estate with liabilities under $2 million

c.Small-business debtors that do not own or manage real estate with liabilities not exceeding $2.7 million

d.Small business debtors that manage real estate with liabilities not exceeding $2.7 million

3.Which bankruptcy filing has advantage of being the least expensive and complicated?

a.Debtor-initiated filing under chapter 11 reorganization plan

b.Debtor-initiated filing under chapter 7 liquidation

c.Debtor-initiated filing under chapter 13 repayment plan

d.Creditor-initiated filing under chapter 11 reorganization plan

4.What is a cramdown provision?

a.Confirmation of the reorganization plan by the court over the objections of a class of debtors

b.Confirmation of the reorganization plan by the court over the objections of a class of creditors

c.Confirmation of the reorganization plan by the court over the objections of the debtor

d.Confirmation of the reorganization plan by the court over the objections of the trustee

5.??

6.Partners 1, 2, and 3 execute a partnership agreement, contributing 51%, 39%, and 10% respectively. The agreement is silent on voting between the partners. Under the uniform partnership act (UPA), how will these partners' votes be counted?

a.Partner 1's vote will count five times as much as partner 3

b.Partners 2 and 3 cannot outvote partner 1 because their cumulative interests are less than 50%

c.Partners 1,2, and 3 will only have one vote

d.Partner 3 will not be able to vote because he lacks a 25% interest

7.Which fiduciary duty is exercised when a partner refrains from intentional misconduct?

a.Duty of disclosure

b.Duty of obedience

c.Duty of care

d.Duty of loyalty

8.How is the liability determined for members of a limited liability company, absent a member's significant contribution to any tortious conduct?

a.Limited to the amount of the member's investment

b.Limited by uniform limited liability company act

c.Limited to the extent of the applicable law

d.Limited to set a percentage by the number of members

9.Which type of law primarily governs limited liability companies?

a.Common law

b.State law

c.Both state and federal law

d.Federal law

10.When winding up a limited liability company (llc) who would be paid first from the sales proceeds?

a.Members for their equal shares

b.Members who are creditors of the llc

c.Members of their capital contributions

d.Member in accordance with the operating agreement

11.For which circumstance may an individual be personally liable for actions of a limited liability company (llc)?

a.Member personally guarantees a business loan

b.Member manages daily activities of the llc

c.Customers sues LLC for negligence

d.LLC is taxed as a C corporation

12.Who are the owners of a corporation?

a.Partners

b.Directors

c.Shareholders

d.Members

13.A corporation wants to conduct business in a state other than the state of its formation. Which filing gives the corporation the right to conduct business in a state other than the state of its formation?

a.Certificate of formation

b.Articles of organization

c.Articles of incorporation

d.Certificate of authority

14.A father and son want to formalize their family cattle ranching operations into a legal business entity. They want the business entity to offer liability protection and perpetual existence as well as have a flow-through status for tax purposes. Which business entity is appropriate for this situation?

a.General partnership

b.S corporation

c.Sole proprietorship

d.C corporation

15.A corporate officer enters into a contract with a supplier for the purpose of raw materials for its corporation. What is the agency status between the corporate officer and the corporation?

a.Principal and corporate officer, non-agency relationship

b.Employer-independent contractor, agency relationship

c.Agent and principal, agency relationship

16.?

17.Which event can cause an agency authority to terminate by the operation of the law?

a.Revocation of the consent to authority by the principal

b.Abandonment of authority by the agent

c.Death or insanity of either the principal or the agent

d.Renunciation of authority by the agent

18.What is the duty of the principal to the agent in order to terminate an agency at will?

a.To provide the agent a valid reason for the termination of the agency

b.To give the agent's third parties a notice of the termination of the agency

c.To reimburse the agent for the loss incurred upon termination of the agency by the principal

d.To give the agent reasonable notice of the termination of the agency

19.When is the principal liable to the third parties for the actions of the agent?

a.When the agent misrepresents the authority to a third party on behalf of the principal

b.When the agent had authority to enter legally binding contacts on behalf of the principal

c.When a third party is injured as a result of the misrepresentation of the facts by the agent

d.When the agent's actions are outside the scope of authority of the agency.

20.??

21.For which reason may the agent be liable in a gratuitous principal-agent relationship?

a.Fiduciary replacement

b.Breach of contract

c.Breach of warranty

d.Negligence

22.??

23.A motivational speaker agrees to fly to another country to train a ne group of employees. The flight home is delayed due to a labor union strike, and the speaker must pay to stay in a hotel overnight. Which duty does the company who requested this training own the motivational speaker?

a.Duty to compensate

b.Duty to indemnify

c.Duty to reimburse

d.Duty to cooperate

24.A principal provides special equipment and office environment for all its agents and employees. What is the duty?

a.Duty to cooperate

b.Duty to reimburse

c.Duty to indemnify

d.Duty to provide safe working conditions

25.??

26.Which statement by a salesperson would qualify as bait-and-switch advertising?

a.I promise lasting weight loss if you use this product or your money back

b.I cant show the advertised mini-fridge on sale to you, but you might like other refrigerator and stove instead

c.Most of these soups will lower your blood pressure and cure you of heart disease

d.This wool is as soft as a newborn lamb at the petting zoo

27.Which element is being satisfied under the Lanham act when a business claims false advertisement as the only reason for its harm?

a.Causation

b.Loss

c.Duty

d.Injury

28.A consumer purchases goods through the mail. Under which circumstance would the merchant violate the mail, internet, or telephone order merchandise rule?

a.Offering only a full refund when a consumer cancels

b.Delivering the product by regular, but not certified mail

c.Failing to notify the consumer when orders cannot be shipped on time

d.Shipping an order 30 days after an order is made

29.What is the standard for violating the securities act of 1933?

a.Negligently defrauding investors by omitting facts in a registration statement

b.Selling securities after the posteffective period

c.Intentionally defrauding investors by misrepresenting facts in a prospectus

d.Omitting immaterial facts from a prospectus

30.What is a written offer that describes the issuer and indicates that more information can be obtained on the securities and exchange commission (SEC) website? Ppo

a.Private placement exemption

b.Exempt security

c.Free-writing prospectus

d.Mutual fund

31.Corporate executives are required to file reports with the securities and exchange commission concerning their ownership and transactions. Which violation is this filing meant to discourage?

a.Prospectus misrepresentation

b.Testing the waters

c.Insider trading

d.Rule 144

32.Which is the entity created the Sarbanes-Oxley act of 2002?

a.Public company accounting oversight board (PCAOB)

b.Securities and exchange commission (SEC)

c.International accounting standards board (IASB)

d.American institute of certified public accountants (AICPA)

33.Who are the members of the audit committee of a public company?

a.Corporate officers

b.Company financial officers

c.Inside directors

d.Outside directors

34.Which measure of the Sarbanes-Oxley ensures corporate accountability for the information in the financial reports?

a.Certification by the board of directors for the accuracy of information in the financial statements

b.Certification by the independent auditor for the accuracy of information in the financial statements

c.Certification by the audit committee for the accuracy of information in the financial statements

d.Certification by the CEO and CFO for the accuracy of information in the financial statements

35.Who or what is directly responsible for the accuracy of the corporate financial reporting?

a.The external auditors

b.The board of directors

c.The CEO and CFO

d.The audit committee