Final Exam Flashcards
Written stop payment orders are valid for 12 months.
False, they’re valid for 6 months.
Where is a Form UCC-1 filed?
With a local government office.
Natalie may not order a stop payment on the check she issued to Karen because she owes Karen the money and is only stopping payment due to the disagreement they just had.
False
Tim makes a check payable to “Tina, Doug, Beth, Sara.” Whose endorsements may be on the check for it to be negotiable?
A) Tina B) Beth and Sara C) Tina, Doug, Beth, and Sara D) Doug E) all of the above
All of the above
How is a security agreement authenticated?
signed by the debtor
Kelly issues a check to “Peter and Paul.” She gives the check to Peter, who signs it and deposits it into his checking account. Paul demands his payment from Kelly, who in turns demands payment from her bank. Is the bank liable to Kelly?
Yes; the check was not negotiable with only Peter’s endorsement.
You have a duty to report check alterations to your bank within one year of discovering the alteration.
False
Betty issued 15 checks to her sister in various amounts over a two-day period. She would like to stop payment on one of the checks she issued, but she does not know the check number or the date it was issued and she is unsure of the amount. (She thinks the check she wants to stop was around $100.) What is the bank’s liability to Betty if it pays the check?
The bank is not liable to Betty because she did not describe the check with reasonable certainty.
Jason sells 12 bikes to Mike on credit and they execute a security agreement. Mike has already pledged his inventory for his bike shop as collateral for his bank loan. What must Jason do to create a purchase-money security interest in the bikes?
A) file a UCC-1 B) file the UCC-1 before he delivers the bikes C) give notice to the bank D) amend the bank’s UCC-1 filing E) A, B, and C
Answer is E
You can order a stop payment on a cashier’s check.
False
This business form requires filing with the state.
A) Corporation B) Limited liability company C) Sole Proprietorship D) Limited Partnership E) A and B F) A, B, and C G) all of the above
Answer is E
Liability protection is available in all business forms
False
Which is not one of the four basic types of business forms?
A) Limited Partnership
B) Sole Proprietorship
C) Corporation
D) Limited Liability Company
Answer is A
If, as a business owner, I was required to issue K-1s, which business form would I be?
A) Sole Proprietorship B) C Corporation C) S Corporation D) Partnership E) A and C F) C and D G) All of the above
Answer is F
One reason to choose a corporation over a limited liability company is liability protection.
False
Which business form requires filing articles of incorporation and preparing bylaws?
A) Limited Partnership B) Limited Liability Company C) Corporation D) Partnership E) B and C
Answer is C
If I were opening a gymnastics facility, I would choose which type of business form for liability protection?
A) Sole Proprietorship B) Partnership C) S Corporation D) Limited Liability Company E) C and D F) B, C, and D G) All of the above
Answer is E
A Limited Partnership requires a formal business structure.
False
Which is currently the most popular form of business?
Limited Liability Company
A limited partner in a partnership is subjecting his or her personal assets to risk.
False
Home Health Care Services wants its employees and applicants to undergo genetic testing. This business may not
A) discriminate in place or promotion against applicants who have a genetic predisposition to disease.
B) deny coverage or charge higher premiums to its employees for group health plans based solely on a genetic predisposition to disease.
C) refuse to hire or discharge employees who have a genetic predisposition to disease.
D) All of the above
Answer is D
Most employees today work as employees at will unless there are exceptions present. Some of the exceptions include
A) fraud or false promises
B) employment discrimination in violation of state or federal law
C) whistleblowing
D) A, B and C
Answer is D
If you accept worker’s compensation benefits, you cannot sue for injuries caused by negligence by the employer.
True
Jacob retires from his job as a manager at Readers Bookstore. Federal law provides
A) termination of pension benefits upon employment termination
B) vesting of employee’s rights to all pension benefits immediately
C) employer’s required establishment of pension plans
D) timely and uninterrupted payment of private pension benefits
Answer is D
Susan is the only female surveyor in her office. Her co-workers keep pin-up pictures in their cubicles and talk about their conquests while out working. Susan feels compelled to quit. This is
A) a voluntary discharge on the basis of impact discrimination
B) a harassing discharge on the basis of treatment discrimination
C) a constructive discharge on the basis of gender discrimination
D) not a discharge or discrimination
Answer is D
If I were to hire Sidney Crosby away from the Pittsburgh Penguins and bring him to the Buffalo Sabers, I would have him sign a contract because
A) it would secure and bind him to my organization and I would be paid if he left sooner than the term of his contract
B) I want to ensure that he does not prematurely leave my organization because of his special skill and expertise
C) he is an employee that would be hard to replace
D) A and B
E) A, B and C
Answer is E
Federal law provides the right to continued health coverage for an employee who has been terminated from employment
True
David is a shift manager at Pizza Hut. He sets the schedules for the employees and orders inventory. David is an exempt employee.
True
