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Mgmt 390 Final Exam Erau 2016 Question 1 4 Pts A Conditional

Question 1 4 pts
A conditional promise to pay is not a negotiable instrument.
Question 2 4 pts
An instrument payable “with interest” must specify a particular rate to be negotiable.
Question 3 4 pts
On May 1, Dooley signs a check that is payable to the order of Extra Credit Corporation and that is dated July 1. This check is
nonnegotiable, because it is payable to Extra Credit Corporation.
nonnegotiable, because it is postdated.
nonnegotiable, because it is signed by Dooley.
Question 4 4 pts
Financial institutions that exchange digital images of checks do not have to exchange the original paper checks.
Question 5 4 pts
The Federal Reserve System acts as a clearinghouse where banks exchange checks.
Question 6 4 pts
Each bank in a collection chain must pass a check on before midnight of the day of its receipt.
Question 7 4 pts
Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.
Question 8 4 pts
A security agreement must be filed in person to be valid and enforceable.
Question 9 4 pts
The first security interest to be perfected is the last in priority over any other perfected security interests.
Question 10 4 pts
Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them, to be divided proportionately. This is
a. a composition agreement.
b. a guaranty agreement.
c. a judicial lien.
d. a suretyship agreement.
Question 11 4 pts
Ronaldo agrees to pay Simplex Cash Store a debt that is otherwise dischargeable in bankruptcy. This is
a reaffirmation.
a liquidation.
a reorganization.
a petition
Question 13 4 pts
A power of attorney is a written document.
Question 14 4 pts
Before a principal can ratify a contract, the agent must withdraw from the deal.
Question 15 4 pts
Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia’s authority can be implied by
an inference from the position Sonia occupies.
any inference a reasonable customer or supplier would make.
any inference Sonia chooses to make.
no inference
Question 16 4 pts
All employees are entitled to overtime pay.
Question 17 4 pts
Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E’s employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
desperate-measure discrimination.
disparate-impact discrimination.
disparate-treatment discrimination.
not discrimination
Question 18 4 pts
Under the Equal Pay Act of 1963, all of the women on an employer’s staff must be paid the same as all of the men.
Question 19 4 pts
Coco is considering forms of business organization for her confections business?Coco’s Cupcakes. Most states require that a limited liability company have
no minimum number of members.
at least one member.
at least two members.
at least three members, including at least one general partner
Question 20 4 pts
Jim organized, and owns and operates, Jim’s Landscaping Service in the simplest form of business organization. This is
a corporation.
a limited liability company
a partnership
a sole proprietorship
Question 21 4 pts
Greta is a member of Hovercraft LLC. As a member, Greta is
a manager or officer, but not an owner
an investor, but not a manager, officer, or owner
an owner
a participant, but not an investor, manager, officer, or owner
Question 22 4 pts
Stocks represent the borrowing of funds by firms.
Question 23 4 pts
Caffeine Café, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of
each of the corporation’s incorporators
each of the corporation’s shareholders
the corporation
the corporation’s initial registered agent
Question 24 4 pts
The possession of land without right is a tenancy at will.
Question 25 4 pts
Mineral Products Corporation, which owns no land, has a right to mine the copper from Natural Resource Company’s land. Mineral’s right is
a leasehold estate
a license
an easement
a profit

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