(WGU D078) BUS 2060 BUSINESS ENVIRONMENT APPLICATIONS FINAL EXAM REVIEW Q & A 2024
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Advanced Accounting
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Advanced Accounting
(WGU D078) BUS 2060 BUSINESS ENVIRONMENT APPLICATIONS FINAL EXAM REVIEW Q & A 2024(WGU D078) BUS 2060 BUSINESS ENVIRONMENT APPLICATIONS FINAL EXAM REVIEW Q & A 2024(WGU D078) BUS 2060 BUSINESS ENVIRONMENT APPLICATIONS FINAL EXAM REVIEW Q & A 2024
BUS 2060 Business Environment Applications I Final Exam Review Q & A 2024 1. What is the primary advantage of a limited liability company (LLC) over a partnership? - A) Unlimited life - B) Limited liability for owners - C) No need for annual meetings - D) All of the above Answer: B) Limited liability for owners Rationale: The main advantage of an LLC is that the owners have limited liability for the debts and actions of the company, unlike in a partnership where partners can be held personally liable. 2. Which of the following is a characteristic of a corporation? - A) Pass -through taxation - B) Perpetual existence - C) No separation betwee n ownership and management - D) Limited number of shareholders Answer: B) Perpetual existence Rationale: Corporations have a perpetual existence, meaning they continue to exist even if ownership or management changes, unlike sole proprietorships o r partnerships that may dissolve. 3. In the context of business law, what does the 'doctrine of ultra vires' refer to? - A) Acts beyond the powers of a company - B) The responsibilities of a company's board of directors - C) The legal protections for minority shareholders - D) The process of incorporating a business Answer: A) Acts beyond the powers of a company Rationale: 'Ultra vires' is a Latin term meaning 'beyond the powers'; in business law, it refers to acts performed by a company that are beyond the scope of its charter or articles of incorporation. 4. What legal document outlines the internal rules for the management of a corporation? - A) Articles of Incorporation - B) Corporate Bylaws - C) Partnership Agreement - D) Operating Agreement Answer: B) Corporate Bylaws Rationale: Corporate bylaws are the rules that govern the internal management of a corporation, detailing procedures for holding meetings, electing the board of directors, and other corporate functions. 5. Which business structure is specifically designed for professionals such as lawyers, doctors, and accountants? - A) S Corporation - B) C Corporation - C) Professional Corporation (PC) - D) Limited Liability Pa rtnership (LLP) Answer: C) Professional Corporation (PC) Rationale: A Professional Corporation is a business structure that allows licensed professionals to operate with the benefits of a corporate structure, including limited liability. 6. What is the main purpose of antitrust laws? - A) To regulate trade secrets - B) To prevent unfair competition - C) To protect consumer rights - D) To encourage international trade Answer: B) To prevent unfair competition Rationale: Antitrust laws are designed to prevent unfair competition by prohibiting monopolistic practices and ensuring a fair marketplace for all businesses. 7. Which of the following best describes 'piercing the corporate veil'? - A) Changing the corporate structure - B) Holding shareholders personally liable - C) Protecting directors from lawsuits - D) Increasing corporate transparency Answer: B) Holding shareholders personally liable Rationale: 'Piercing the corporate veil' refers to a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders, typically in cases of fraud or when the corporation is a sham. 8. What is a 'fiduciary duty'?
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