Bus 401 Final Exam Questions

1745 WordsJul 7, 20137 Pages
BUSINESS LAW 401 – FINAL EXAM 1. Name three ways to finance a new business. 2. What is the primary purpose of federal bankruptcy law? a. To protect creditors b. To treat all creditors equally c. To preserve business relationships d. To discharge the debtor from burdensome debts by giving him a fresh start 3. Martha started a flower shop as a sole proprietor. After one year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true? a. Martha is personally liable for the additional $75,000. b. Martha’s business creditors can…show more content…
Agreement, consideration, and contractual capacity d. Agreement, consideration, contractual capacity, and a lawful objective 15. A principal gives an agent express authority to “get his car running right.” The authority that the agent has to enter into contracts for the purchase of auto parts is: a. Apparent authority. b. Authority by estoppel. c. Inherent authority. d. Express authority. e. Implied authority. 16. What is the most important difference when a business uses Chapter 11 rather than Chapter 7 in a bankruptcy? a. In Chapter 11, petitions must be voluntary, whereas Chapter 7 petitions can be either voluntary or involuntary. b. In Chapter 11, the business survives, whereas in Chapter 7 the business does not survive. c. In Chapter 11, all creditors are assured of receiving some payment, whereas in Chapter 7 some creditors may receive nothing. d. In Chapter 11, there is never a trustee, whereas in Chapter 7 there is always a trustee. 17. Which of the following statements is not true under the Fair Labor Standards Act? a. Children under 14 cannot work at all, except on farms. b. Children ages 14 and 15 may work limited hours in nonhazardous jobs. c. Children ages 16 and 17 may work unlimited hours in nonhazardous jobs. d. Persons age 18 or over may work unlimited hours in nonhazardous jobs. e. Persons age 18 or over may work unlimited hours in hazardous jobs. 18. The Uniform Computer Information Transactions Act governs

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