2. A holder who takes a negotiable instrument in good faith and for value is a holder in due course.

1. True

2. False

9. A _____ is a promise by a bank to repay a sum of money received by it

1. certificate of deposit

2. real estate mortgage note

3. registered bond

4. bank note

12. The maker of a promissory note has accountability for:

1. insuring the negotiability of the instrument.

2. acknowledging the existence of every indorser.

3. insuring the underlying conditions are met.

4. expressly agreeing to pay the note according to its terms.

18. A holder for value and in good faith with no knowledge of dishonor, defenses, or claims, or that paper is overdue is known as a _____.

1. holder in presentment

2. holder in due course

3. holder in good faith

4. holder in liability

23. Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent?

1. The one attempting to ratify must have been capable of authorizing the act at the time the act was done.

2. The one attempting to ratify need not be capable of authorizing the act at the time approval of the act is given.

3. It is permissible for the one attempting to ratify to approve part of the act and reject the rest.

4. The ratification cannot be made before the third party has withdrawn from the transaction.

25. Jones acted as Blake's agent for 12 years before this contract of agency was dissolved by Blake. However, Blake failed to convey this fact to those vendors with whom Jones contracted in the past. Which of the following is likely to occur if Jones negotiates future contracts with these vendors on Blake's behalf?

1. Blake can rescind those contracts since Jones is no longer an agent.

2. Blake can sue the vendors for contracting without authorization.

3. Blake would be bound by those contracts and would have to pay the contracted price.

4. Blake can claim compensation from Jones for any profits made

26. Which of the following is a duty a principal has toward the agent?

1. A principal must provide the agent with a record of all monetary transactions.

2. A principal must obey routine instructions from the agent.

3. A principal must keep the agent informed of all financial activities.

4. A principal must compensate the agent for his or her services.

27. The termination of a corporation's operation except for activities needed for liquidation is known as _____.

1. renunciation

2. dissolution

3. destruction

4. incapacitation

28. Which of the following best describes a durable power of attorney?

1. It is a verbal agreement designed to be effective even though the principal is dead.

2. It is a written appointment of agency designed to be effective even though the principal is dead.

3. It is a verbal agreement designed to be effective even though the principal is incapacitated.

4. It is a written appointment of agency designed to be effective even though the principal is incapacitated.

29. When a contract can be terminated at any time by both an employer and an employee, the situation is known as _____.

1. employment without dependence

2. employment at will

3. employment at cost

4. employment without liability

30. Which of the following is considered a fair labor practice by a union?

1. Refusal to bargain collectively with the employer

2. Barring a worker from the union for refusal to pay excessive initiation fees

3. Picketing an employer to force bargaining with an uncertified union

4. Barring a worker from the union for nonpayment of dues

32. Which of the following best describes disparate treatment?

1. It is intentional discrimination by an employer against a particular race.

2. It is special treatment intentionally provided to those with disabilities.

3. It is the unintentional perception of an employer about employees with disabilities.

4. It is the unintentional perception of an employer against an individual.

33. Which of the following is likely to be governed under the Title VII of the Civil Rights Act of 1964?

1. Dan selling a house to Ben on condition that he accepts a lower price

2. Ann making a contract with Ben who is mentally ill

3. Dan refusing to hire Ann on the grounds of sex

4. Dan purchasing a motorcycle from Ben who is a minor

34. Which of the following is true of a sole proprietorship?

1. A sole proprietor has limited flexibility in managing the business.

2. A sole proprietor has unlimited liability and high financial risk.

3. A sole proprietorship operated under the proprietor's name must be registered.

4. A sole proprietorship is a complex business to organize.