BUSN 311 Week 4 Midterm Exam Answers

Week Four Midterm

Part 1 of 1 – 75.0 Points

Question 1 of 15 5.0 Points
In pre-trial discovery, if a business does not produce incriminating e-mails the court can instruct the jury that it can make negative inferences from the lost documents.

A.True

B.False

 

Question 2 of 15 5.0 Points
In litigation, indirect non-legal costs are roughly the same amount as direct legal costs.

A.True

B.False

 

Question 3 of 15 5.0 Points
All of the following are ways to lower business risk except:

 

A.stick to company business

B.always be respectful, courteous and constructive
C.keep matters confidential

D.take shortcuts to increase profits

 

Question 4 of 15 5.0 Points
Issuing a public apology for corporate wrongdoing will always result in increased litigation.

A.True

B.False

 

Question 5 of 15 5.0 Points
When answering a complaint the defendant can do all of the following except:

A.deny the allegations set forth in the complaint

B.list defenses

C.admit to the allegations set forth in the complaint
D.defer answering for 180 days

 

Question 6 of 15 5.0 Points
All of the following are methods of alternative dispute resolution except for:

A.mediation

B.litigation

C.arbitration

D.settlement

 

Question 7 of 15 5.0 Points
The monetary damage award set out by the court is the amount the prevailing party is guaranteed to receive from the losing party.

A.True

B.False

 

Question 8 of 15 5.0 Points
Examples of antitrust activities include all of the following except for:

A.price fixing

B.allocation of markets

C.standardization among trade association members
D.concerted refusal to deal

 

Question 9 of 15 5.0 Points
The grant of a patent is a limited ‘monopoly’ and can run counter to the antitrust principle encouraging free and open markets.

 

A.True

B.False

 

Question 10 of 15 5.0 Points
All of the following are a type of contract except:

A.Express

B.Implied

C.Enduring

D.Unilateral

 

Question 11 of 15 5.0 Points
Which of the following is not a form of business organization?

A.Limited Liability Corporation

B.Partnership

C.Sole Proprietorship

D.Corporation

 

Question 12 of 15 5.0 Points
Identify the correct statement about liability in business organizations

A.A partner is not responsible for the debts of the partnership.

B.A sole proprietor is personally liable for all debts of the business.
C.A shareholder is responsible for the debts of the corporation.

D.A member is personally liable for the debts of the LLC.

 

Question 13 of 15 5.0 Points
The revenue from a Chapter C corporations is taxed twice.

A.True

B.False

 

Question 14 of 15 5.0 Points
The test for mental capacity to enter into a contract is whether the person has reached the age of majority

A.True

B.False

 

Question 15 of 15 5.0 Points
A partnership must prepare an income tax return but the partnership pays no income taxes itself.

A.True

B.False