Question 1

The following is an example of exempt property of the bankruptcy estate:
A)College loans.
B)A high definition television.
C)A 2 carat engagement ring.
D)Alimony.

Accepted Answer

Exempt property of the bankruptcy estate includes certain types of income such as alimony. College loans, a high definition television, and a 2 carat engagement ring are not exempt property.

Question 2

During which period of the registration process may an issuer sell the offered securities?
A)The prefiling period.
B)The waiting period.
C)The posteffective period.
D)The medieval period.

Accepted Answer

An issuer may sell the offered securities during the posteffective period, which comes after the SEC has declared the registration statement effective. During the prefiling and waiting periods, sales of the securities are generally prohibited. The medieval period is not related to the registration process.

Question 3

A trademark is granted to :
A)A useful invention.
B)A symbol used to signify a product.
C)None of the above.
D)Both of the above.

Accepted Answer

A trademark is a symbol, word, or phrase that is used to identify and distinguish a particular product or service from those of others in the marketplace. Trademarks do not cover useful inventions, which are protected by patents.

Question 4

All of the following types of assets are securities except:
A)Mineral rights.
B)Debentures.
C)Houses.
D)Stocks.

Accepted Answer

Houses are not considered securities because they are not financial instruments that represent ownership or debt in a company.

Question 5

The following type of activity would not be stealing a trade secret:
A)Reverse engineering.
B)Theft.
C)Bribery.
D)Learning the secret while working for the company.

Accepted Answer

Reverse engineering is a legal process of figuring out how a product works or is made by taking it apart and analyzing its components. It is not considered stealing a trade secret if the information is obtained through legitimate means. Theft and bribery are illegal ways of obtaining trade secrets, while learning a secret while working for the company may or may not be considered stealing depending on the circumstances.

Question 6

To qualify as a patent,an invention must be all of the following except:
A)Useful.
B)Novel.
C)Valuable.
D)Nonobvious.

Accepted Answer

The word "valuable" is not a requirement for an invention to be patentable. The other three - useful, novel, and nonobvious - are all necessary criteria for an invention to meet in order to qualify for a patent.

Question 7

Insider trading can be committed by:
A)The CEO of a publicly traded company.
B)The temporary employee of a publicly traded company.
C)Both of the above.
D)None of the above.

Accepted Answer

Insider trading can be committed by anyone who has access to non-public information about a publicly traded company, including CEOs, employees, and temporary workers. It is illegal for anyone to use this information to make trades and profit from it. Therefore, both choices A and B are correct.

Question 8

The Fair-Use doctrine protects the use of the following:
A)Using someone's movie as the basis for a television show.
B)Using someone's television show as the basis for a parody.
C)Using someone's photograph in a picture book without permission.
D)Using someone's statue in an art show.

Accepted Answer

Fair use allows for the use of copyrighted material for purposes such as criticism, commentary, news reporting, teaching, scholarship, or research. Parody falls under the category of criticism and commentary, so using someone's television show as the basis for a parody would likely fall under fair use. The other choices do not necessarily fall under fair use and may require permission or licensing.

Question 9

The Truth-In-Lending Act applies to:
A)Commercial credit.
B)Consumer credit.
C)Both of the above.
D)None of the above.

Accepted Answer

The Truth-In-Lending Act is designed to protect consumers in credit transactions by requiring clear disclosure of key terms and costs, thus it applies to consumer credit.

Question 10

The following types of works are eligible for copyright protection:
A)Dance routines.
B)Photographs.
C)None of the above.
D)Both of the above.

Accepted Answer

Both dance routines and photographs are eligible for copyright protection as they are considered original works of authorship that are fixed in a tangible medium of expression.

Question 11

A loans B money,and C promises to pay the loan if B defaults.C is a:
A)Surety.
B)Guarantor.
C)Cosigner.
D)Fool.

Accepted Answer

A surety is a person who agrees to be responsible for a debt or obligation of another person. A guarantor is a person or entity that agrees to be responsible for another person's debt or obligation in the event that the debtor is unable to meet their obligation. A cosigner is a person who signs a loan with another person and agrees to be responsible for the loan if the borrower defaults. In this scenario, C is acting as a guarantor, not a surety or cosigner. A fool is not a viable choice in this scenario.

Question 12

States with air pollution problems that fail to develop or implement an approved plan for dealing with nonattainment areas are subject to the following sanctions:
A)Loss of federal highway funds.
B)Limitations on new sources of emissions.
C)Both of the above.
D)None of the above.

Accepted Answer

States that fail to develop or implement an approved plan for dealing with nonattainment areas are subject to both the loss of federal highway funds and limitations on new sources of emissions under the Clean Air Act.

Question 13

The type of bankruptcy that is also called straight bankruptcy is Chapter:
A)7)
B)9)
C)11.
D)13.

Accepted Answer

Chapter 7 bankruptcy is also called straight bankruptcy because it involves the liquidation of a debtor's assets to pay off their creditors. This is the most common type of bankruptcy for individuals and small businesses.

Question 14

Who brings criminal actions against those charged with willfully violating the Securities Act of 1933?
A)The Securities and Exchange Commission.
B)The Justice Department.
C)The Federal Securities Laws Enforcement Department.
D)The National Department of Securities Violators.

Accepted Answer

The Justice Department is responsible for bringing criminal actions against individuals or entities that violate the Securities Act of 1933. The Securities and Exchange Commission (SEC) can bring civil actions, but criminal cases are handled by the Justice Department.

Question 15

A short-swing profit (the buying and selling of securities by a statutory insider)concerns the following time period:
A)Less than one year.
B)More than two weeks.
C)The life span of a television series on UPN.
D)Within six months.

Accepted Answer

A short-swing profit refers to the buying and selling of securities by a statutory insider within a six-month period, as regulated by the Securities Exchange Act of 1934.

Question 16

The following type of debt is discharged in Chapter 13,but not in Chapter 7:
A)Alimony.
B)Debts incurred through fraud.
C)Child Support.
D)None of the above.

Accepted Answer

The answer of The following type of debt is discharged...

Question 17

In a Chapter 7 bankruptcy,the highest priority claim is a:
A)Debt owed for child support.
B)Tax obligations.
C)Wages earned by the debtor's employees.
D)Secured creditors.

Accepted Answer

The answer of In a Chapter 7 bankruptcy,the highest priority...

Question 18

Which of the following products does not need to be approved by the FDA before being sold to the public?
A)Antidepressants.
B)Cosmetics.
C)Steroids.
D)Vitamins.

Accepted Answer

The answer of Which of the following products does not...

Question 19

The Consumer Product Safety Commission is empowered to:
A)Conduct research on the safety of consumer products.
B)Tell the public which toys they should buy.
C)Warn the public that some clothing doesn't fit well.
D)Compare the flavor quality of competing sodas.

Accepted Answer

The Consumer Product Safety Commission is responsible for conducting research on the safety of consumer products. They also have the authority to issue recalls, ban products, and set safety standards for various products.

Question 20

Caveat emptor means:
A)Let the seller beware.
B)Let the buyer beware.
C)Don't forget to brush.
D)Empty the cave.

Accepted Answer

Caveat emptor is a principle in commerce that the buyer is responsible for checking the quality and suitability of a product before making a purchase. Therefore, the correct meaning is "let the buyer beware".

Quiz 1: Midterm One

The following is an example of exempt property of the bankruptcy estate:

During which period of the registration process may an issuer sell the offered securities?

A trademark is granted to :

All of the following types of assets are securities except:

The following type of activity would not be stealing a trade secret:

To qualify as a patent,an invention must be all of the following except:

Insider trading can be committed by:

The Fair-Use doctrine protects the use of the following:

The Truth-In-Lending Act applies to:

The following types of works are eligible for copyright protection:

A loans B money,and C promises to pay the loan if B defaults.C is a:

States with air pollution problems that fail to develop or implement an approved plan for dealing with nonattainment areas are subject to the following sanctions:

The type of bankruptcy that is also called straight bankruptcy is Chapter:

Who brings criminal actions against those charged with willfully violating the Securities Act of 1933?

A short-swing profit (the buying and selling of securities by a statutory insider) concerns the following time period:

The following type of debt is discharged in Chapter 13,but not in Chapter 7:

In a Chapter 7 bankruptcy,the highest priority claim is a:

Which of the following products does not need to be approved by the FDA before being sold to the public?

The Consumer Product Safety Commission is empowered to:

Caveat emptor means: