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LDR 531 Week 5 Quiz

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LDR/531 Week 5 Quiz (15/15 Right)

 1 Which of the following powers do administrative agencies typically have?

    Statute interpretation, law enforcement, and mediation
    Dispute adjudication, mediation, and rulemaking
    Rulemaking, statute interpretation, and dispute adjudication
    Law enforcement, statute interpretation, and dispute resolution

2 Officers of a corporation typically can have which types of agency authority to bind the corporation?

    Express, implied, and apparent
    Express, transparent, and applied
    Express, transparent, and implied
    Express, applied, and apparent

3 Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker safety rules. As a result, there have been an increased number of on-site accidents and several construction workers have sustained serious injuries. Which of the following powers will allow an administrative agency to bring agency proceedings against Tuff-Steele Constructions?

    Judicial authority
    Licensing
    Executive power
    Rulemaking

4 If a corporate officer or director acts in a manner to make use of an advantage that he or she knows will only benefit himself or herself and deprives the corporation of that advantage, what breach of fiduciary duty has been committed?

    Duty of loyalty by self-dealing
    Duty of care by violation of the business judgment rule
    Duty of obedience by competing with the corporation
    Duty of loyalty by usurping a corporate opportunity

5 Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?

    Failing to anticipate a drop in the consumer demand of the company’s product
    Failing to predict the startup of a new competitor
    Failing to predict a raw materials shortage resulting from a natural disaster
    Failing to react appropriately to a severe rise in the prime interest rate

6 The Sarbanes-Oxley Act prohibits publicly traded companies from making personal loans to whom?

    Its certified public accountants
    Its executive officers or directors
    Its majority shareholders
    Its legal counsel

 

7 According to the provisions set forth by the Sarbanes-Oxley Act, which federal government agency may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company?

    United States International Trade Commission
    Securities and Exchange Commission
    Federal Reserve System
    Federal Communications Commission

8 In order to protect wildlife that may be subject to scarcity, which Executive Branch cabinet member designates which species of wildlife may be endangered or threatened?

    Secretary of Homeland Security
    Secretary of Health and Human Services
    Secretary of the Interior
    Secretary of Commerce

9 In order to prevent and clear hazardous wastes that increase mortality or serious illness, the federal government established a specific method to finance the cleaning of polluted areas by enacting what statute?

    The Superfree Act
    The Comprehensive Environmental Response, Compensation, and Liability Act
    The Insecticide, Fungicide, and Rodenticide Act
    The Toxic Substances and Control Act

10 Under what system of corporate voting by shareholders can a minority shareholder achieve success in electing someone to the board of directors?

    Straight voting
    Absentee voting
    Proxy voting
    Cumulative voting

11 In 1970, Congress established an administrative agency to enforce statutes enacted to protect the air and water of this country. What is the name of this agency?

    Environmental Protection Agency
    National Ambient Air Quality Standards Agency
    Air Quality Control Agency
    Army Corps of Engineers Agency

12 Unless otherwise stated in the articles of incorporation, a quorum to hold a meeting of the shareholders is generally defined as which of the following?

    A committee of directors selected to vote on a corporation action
    The number of shareholder votes necessary to pass an action
    The number of registered shareholders eligible to vote at a given time
    A majority of shareholders required to be present to vote on a corporate action

 

13 If a corporate officer in the position of secretary intentionally takes over the powers provided to the treasurer in the corporate documents, what fiduciary duty does that corporate secretary breach?

    Duty of loyalty
    Duty of obedience
    Duty of good faith and fair dealing
    Duty of care

14 The Sarbanes-Oxley Act is intended to increase the confidence of the public and investors through increasing which of the following?

    Director complacency
    Separation of powers
    Corporate veil
    Corporate governance  

15 Which of the following is true of the Federal Trade Commission?

    It is a corporation subsidized by the federal government
    It is a branch of the U.S. Supreme Court
    It is a temporary commission created by executive order that has become permanent
    It is a federal agency created by Congress

 

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