Question 1

PowerSoft Corporation creates an internal social media network using enterprise social networking software and systems.Concerns about the use of an internal social media network include how to
A)keep the data safe.
B)make the data public.
C)provide access to all files to all employees.
D)maintain a personal, lively, and entertaining tone.

Accepted Answer

Keeping the data safe is a critical concern when implementing an internal social media network as it contains sensitive company information that should not be accessed by unauthorized personnel.

Question 2

Pond Stock Inc.is a start-up fishery with prospects but no profits as of yet.Pond Stock may be most likely to obtain financing successfully by
A)applying to banks, which are generally willing to lend to start-ups.
B)approaching foreign governments, under which investment laws are less strict than in the United States.
C)attracting venture capital, of which there is more than enough available.
D)crowdfunding.

Accepted Answer

Crowdfunding is a viable option for start-up companies like Pond Stock Inc. that have prospects but no profits yet. Crowdfunding platforms allow businesses to present their funding needs to potential investors, who can make small contributions in exchange for rewards or equity in the company. This can help Pond Stock raise the necessary funds while also building a community of supporters around their business. Banks may be less likely to lend to start-ups without a proven track record of profitability, and venture capital is highly competitive and may require giving up a significant portion of ownership in the company. Foreign government investment laws may also be too complicated or risky for a start-up to navigate.

Question 3

Odell, an officer of Professional Sportsgear Corporation, uses special software to help identify employees who might commit embezzlement and other wrongful acts.The software performs this function by
A)scanning e-mail for certain words and phrases.
B)looking for anomalies in the firm's financial records.
C)recording phone calls for a third party's review.
D)archiving all electronic communication as potential evidence.

Accepted Answer

The software scans e-mail for certain words and phrases that may indicate potential embezzlement or other wrongful acts.

Question 4

Porto Bella Ltd., a Brazilian firm, requires its employee David to stay connected with work after office hours through a smartphone.In Brazil, David and other employees who are required to use mobile devices after work are
A)entitled to receive overtime wages.
B)prohibited from receiving overtime wages.
C)considered overworked and underpaid.
D)paid by their government for staying connected.

Accepted Answer

According to Brazilian labour laws, employees who are required to work after usual work hours, including using mobile devices, are entitled to receive overtime pay. Therefore, Porto Bella Ltd. must compensate David and other employees who stay connected after their work hours.

Question 5

Eduard is a shareholder of Deutsche Internationale, a German firm.In Germany
A)most claims against firms are alleged in shareholders' derivative suits.
B)the law does not provide for derivative litigation.
C)derivative actions can only challenge directors' actions that shareholders could not legally ratify.
D)if a derivative action is unsuccessful, a firm can sue the plaintiff.

Accepted Answer

The answer of Eduard is a shareholder of Deutsche Internationale,...

Question 6

Armand, an employee of Big Data Corporation, is authorized to access company trade secrets.Armand downloads those secrets onto a thumb drive.He then quits Big Data's employ and goes to work for Cloud Analytics, Inc., a Big Data competitor, with whom he shares the secrets.Under the court's interpretation of the Computer Fraud and Abuse Act (CFAA) in United States v.Nosal, Armand's use of the secrets is
A)a civil violation of the CFAA.
B)not a violation of the CFAA.
C)a criminal violation of the CFAA.
D)an unethical violation of the CFAA.

Accepted Answer

In United States v. Nosal, the court ruled that the CFAA does not cover the misuse of information if the individual had authorized access to the computer system. Armand had authorized access, so his actions do not constitute a CFAA violation.

Question 7

AdGraphix Inc.hires permalancers.From AdGraphix's perspective, the advantages of employing these individuals include
A)paying workers' compensation.
B)providing healthcare benefits.
C)letting permalancers go quickly and without cost.
D)avoiding IRS worker-classification regulations.

Accepted Answer

The advantage of hiring permalancers is that they can be let go quickly and without cost, making it easier for AdGraphix Inc. to manage their workforce and adjust to changes in demand without incurring heavy financial burdens. This also allows the company to avoid burdensome worker-classification regulations enforced by the IRS, which can be costly and time-consuming to comply with. However, they do not provide workers' compensation or healthcare benefits to permalancers, which are typically reserved for full-time employees.

Question 8

Roshini is a shareholder of Satsui, Ltd., a Japanese firm.Roshini brings a derivative action against the company.If the action is unsuccessful, Satsui
A)can sue Roshini for damages.
B)must pay Roshini's legal fees.
C)must apologize to Roshini.
D)must accept Roshini's apology in lieu of costs, fees, or damages.

Accepted Answer

If Roshini's derivative action against Satsui, Ltd. is unsuccessful, the company can sue her for damages. This is because derivative actions are brought on behalf of the company and a unsuccessful outcome would mean that the company's reputation, finances or other interests have been damaged. As a shareholder, Roshini has a duty to act in the company's best interests, and if she fails to do so, she may be held liable for any harm caused to the company.

Question 9

Geo Global Corporation, a U.S.firm, requires its employee Marcy to stay connected with work after office hours through a smartphone.In the United States, Marcy and other employees who are required to use mobile devices after work may have a valid claim to overtime wages if they
A)are not exempt under the overtime regulations of the Fair Labor Standards Act.
B)are not reimbursed by their employers for the use.
C)are supplied with the devices by their employers.
D)do business with international contacts.

Accepted Answer

Under the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay for hours worked over 40 in a workweek. If Marcy is non-exempt and required to work after hours, she may be eligible for overtime wages.

Question 10

Casino Club requires its female employees to wear make-up.Male employees are not required to wear make-up but must "look neat." Dhara, a bartender at the club under an at-will employment contract, is fired for not complying with the make-up rule.Under the court's ruling on similar facts in Jesperson v.Harrah's Operating Co., Dhara is most likely entitled to
A)reinstatement.
B)no relief.
C)damages.
D)an injunction against the enforcement of Casino's "lookism" rule.

Accepted Answer

The court in Jesperson v. Harrah's Operating Co. ruled that requiring female employees to wear make-up did not constitute gender discrimination under Title VII, so Dhara is likely entitled to no relief.

Question 11

Taco-Taco Pizza, Inc., offers entrepreneurs the opportunity to operate a franchise under the Taco-Taco Pizza trade name as a member of a select group of dealers.To possible investors, Taco-Taco Pizza makes claims about the earnings potential of a franchise.For those claims, the franchisor must have
A)a hypothetical basis.
B)a reasonable basis.
C)an actual basis.
D)no basis.

Accepted Answer

The franchisor must have a reasonable basis for the claims they make about the earnings potential of a franchise. This means that they should have some evidence or data to support their claims, such as financial statements or information from other similar franchises. Without any basis, the claims would be unfounded and potentially misleading to investors.

Question 12

Screenworx Inc.is a start-up film production firm with prospects but no profits as of yet.Under the JOBS Act, Screenworx and other similarly situated companies can look for financing by advertising investment opportunities to
A)the public.
B)accredited investors only.
C)unaccredited investors only.
D)banks and venture capitalists but not throughcrowd fundingsites.

Accepted Answer

Under the JOBS Act, companies like Screenworx can use general solicitation to advertise investment opportunities to the public, including both accredited and unaccredited investors, through crowdfunding platforms.

Question 13

Nikita, an employee-agent of Operational Processes, Inc., is authorized to access company trade secrets.Nikita downloads those secrets onto a thumb drive.She then quits Operational's employ and goes to work for Quantum Analysis, Inc., an Operational competitor, with whom she shares the secrets.With respect to the agent's duty of loyalty to her principal, this is
A)unethical, but not illegal.
B)neither unethical nor illegal.
C)illegal, but not unethical.
D)unethical and illegal.

Accepted Answer

Nikita had a duty of loyalty to her former employer, Operational Processes, Inc., to not disclose or use their trade secrets for the benefit of a competitor. By downloading and sharing this information with Quantum Analysis, Inc., she breached this duty and acted unethically and illegally.

Question 14

Jim is shorter than Kevin, and Lonna is less attractive than Merilyn.Research shows that compared with taller men and more attractive individuals, Jim will likely make less income and Lonna will receive poorer performance reviews and a lower salary.Appearance-based discrimination has been barred by
A)Michigan and at least six cities.
B)none of the choices.
C)all of the states.
D)the federal government.

Accepted Answer

Appearance-based discrimination has been barred by Michigan and at least six cities through legislation or executive orders. While the federal government prohibits discrimination based on race, gender, age, and disability, appearance-based discrimination is not explicitly protected under federal law.

Question 15

Korean Hot Dogs Inc.offers entrepreneurs the opportunity to operate a franchise under the Korean Hot Dogs trade name as a member of a select group of dealers that engage in retail fast food sales.To potential investors, the franchisor must provide
A)actual earnings figures.
B)hypothetical earnings figures.
C)projected earnings figures.
D)none of the choices.

Accepted Answer

Franchisors are not required to provide actual, hypothetical, or projected earnings figures to potential investors. They must provide a Franchise Disclosure Document (FDD) which may include earnings information if they choose, but it is not mandatory.

Question 16

Forms of business organizations that limit the liability of their owners are available to businesspersons around the world.Among the features that such firms have in common, in most nations
A)articles of organization must be filed to form the enterprise.
B)one of the owners must be a foreign entity.
C)the organization can have an unlimited number of owners.
D)the owners are not required to choose persons to manage the business.

Accepted Answer

The requirement to file articles of organization is a common feature of limited liability business organizations around the world. This is the legal document that creates the business entity and outlines its operating structure and responsibilities.

B, C, and D are incorrect because they are not requirements for limited liability business organizations. There is no requirement for one of the owners to be a foreign entity, the organization can have a limited number of owners, and the owners have the option to choose persons to manage the business. These may vary depending on the specific laws and regulations of each country.

Question 17

Heinz Kirche, GmbH, is a German Gesellschat mit beschranker, or "company with limited liability." A significant difference between a GmbH and a U.S.limited liability company (LLC) is that
A)German law imposes many restrictions on the operations of GmbHs.
B)German law imposes no restrictions on the operations of GmbHs.
C)U.S.law requires an LLC to have an operating agreement.
D)U.S.law requires that an LLC be owned by shareholders.

Accepted Answer

German law imposes many restrictions on the operations of GmbHs, such as minimum capital requirements and formalities in management and structure, which is a significant difference compared to the more flexible U.S. LLCs.

Question 18

Roboto Robotics Inc.creates an internal social media network using enterprise social networking software and systems.The advantages of an internal social media network include
A)obtaining real-time information about important issues.
B)mass e-mailings.
C)employees' posts of personal notes.
D)"white noise."

Accepted Answer

An internal social media network can provide real-time information about important issues, allowing for quicker responses and decision-making. Mass e-mailings can be achieved through other communication systems, and personal notes from employees may not be relevant or appropriate for the network. "White noise" refers to irrelevant or distracting information, which is not a benefit.

Question 19

Game Apps Corporation hires independent contractors instead of employees.If these workers are determined to have been misclassified, Game Apps may be liable for
A)a seniority and tenure system.
B)back payroll taxes.
C)copyright and trademark royalties.
D)job reinstatement.

Accepted Answer

If workers are misclassified as independent contractors instead of employees, Game Apps may be liable for back payroll taxes. This is because employers are responsible for paying certain taxes for their employees, such as Social Security and Medicare taxes, but not for independent contractors. If Game Apps is found to have misclassified employees as independent contractors, they could be required to pay these back taxes.

Question 20

Drew, an officer of Energy Resources Inc., uses special software to help identify employees who might commit embezzlement.One reason for Drew's use of this software may be to avoid liability for
A)embezzlement.
B)negligence.
C)violation of the business judgment rule.
D)violation of the duty of loyalty.

Accepted Answer

By using special software to detect potential embezzlement, Drew is taking proactive measures to prevent harm to the company. This can help avoid potential liability for negligence if an employee does commit embezzlement and it is discovered that the company did not take sufficient preventative measures.

Quiz 27: the Uniform Commercial Code Article 2 and 2a

PowerSoft Corporation creates an internal social media network using enterprise social networking software and systems.Concerns about the use of an internal social media network include how to

Pond Stock Inc.is a start-up fishery with prospects but no profits as of yet.Pond Stock may be most likely to obtain financing successfully by

Odell, an officer of Professional Sportsgear Corporation, uses special software to help identify employees who might commit embezzlement and other wrongful acts.The software performs this function by

Porto Bella Ltd., a Brazilian firm, requires its employee David to stay connected with work after office hours through a smartphone.In Brazil, David and other employees who are required to use mobile devices after work are

Eduard is a shareholder of Deutsche Internationale, a German firm.In Germany

AdGraphix Inc.hires permalancers.From AdGraphix's perspective, the advantages of employing these individuals include

Roshini is a shareholder of Satsui, Ltd., a Japanese firm.Roshini brings a derivative action against the company.If the action is unsuccessful, Satsui

Geo Global Corporation, a U.S.firm, requires its employee Marcy to stay connected with work after office hours through a smartphone.In the United States, Marcy and other employees who are required to use mobile devices after work may have a valid claim to overtime wages if they

Taco-Taco Pizza, Inc., offers entrepreneurs the opportunity to operate a franchise under the Taco-Taco Pizza trade name as a member of a select group of dealers.To possible investors, Taco-Taco Pizza makes claims about the earnings potential of a franchise.For those claims, the franchisor must have

Screenworx Inc.is a start-up film production firm with prospects but no profits as of yet.Under the JOBS Act, Screenworx and other similarly situated companies can look for financing by advertising investment opportunities to

Jim is shorter than Kevin, and Lonna is less attractive than Merilyn.Research shows that compared with taller men and more attractive individuals, Jim will likely make less income and Lonna will receive poorer performance reviews and a lower salary.Appearance-based discrimination has been barred by

Korean Hot Dogs Inc.offers entrepreneurs the opportunity to operate a franchise under the Korean Hot Dogs trade name as a member of a select group of dealers that engage in retail fast food sales.To potential investors, the franchisor must provide

Forms of business organizations that limit the liability of their owners are available to businesspersons around the world.Among the features that such firms have in common, in most nations

Heinz Kirche, GmbH, is a German Gesellschat mit beschranker, or "company with limited liability." A significant difference between a GmbH and a U.S.limited liability company (LLC) is that

Roboto Robotics Inc.creates an internal social media network using enterprise social networking software and systems.The advantages of an internal social media network include

Game Apps Corporation hires independent contractors instead of employees.If these workers are determined to have been misclassified, Game Apps may be liable for

Drew, an officer of Energy Resources Inc., uses special software to help identify employees who might commit embezzlement.One reason for Drew's use of this software may be to avoid liability for