Exam (elaborations)
BUSA EXAM QUESTIONS AND ANSWERS
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BUSA EXAM QUESTIONS AND ANSWERS
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BUSA EXAM QUESTIONS AND ANSWERSIf a store advertises a product, it must have enough stock on hand to fill every order. -
Answers-F
The FTC has established a national do-not-call registry. - Answers-T
Under usury laws, lenders are limited in amount of interest they may charge. - Answers-
T
Under the Trust in Lending Act, it does not matter how the information is disclosed, so
long as it is disclosed someplace on the first page of the loan document. - Answers-F
If you receive a product in the mail that you did not order: - Answers-It is a gift to you.
Zach sells Cutco Knives door to door. Which of the following statements is false? -
Answers-The seller can cancel orally or in writing.
Depending on state law, if a lender violates the usury laws, the borrower could possibly
be allowed to keep: - Answers-I, II, nor III.
Jodie is upset because her credit card bill shows a charge of $39 to a pornographic
website that she never visited. Under the FCBA: - Answers-The credit card company
must investigate a complaint and respond within 90 days.
Before permitting a company to issue new securities, the SEC investigates to ensure
that the company has a promising future - Answers-F
Small offerings of securities do not need to be registered with the SEC. - Answers-F
Horizontal price-fixing is legal as long as it does not have an anticompetitive impact. -
Answers-F
Only the federal government regulates securities offerings; the state does not. -
Answers-F
A consumer reporting agency has the right to keep information in its files secret. -
Answers-F
Which of the following statements is false? - Answers-If a company cannot ship a
product when promised, the company must cancel the order unless the customer
indicates he wants the item.
It is legal for a company to sell its product at a price below cost so long as it does not
intend to drive competitors out of business - Answers-T
, Under Regulation D, an issuer - Answers-mist make disclosure to uncredited investor
Which of the following statements is not true about a public offering? - Answers-
Company officers may make public statements about the offering before the stock is
sold
To have an illegal monopoly, a company must:
I. Control the market
II. Maintain its control improperly
III. Have a market share greater than 50 percent - Answers-I, II, and III
Lloyd sold car floor mats to Mercedes dealerships. Then Mercedes began to include
floor mats as standard equipment. Mercedes has a 10 percent share of the luxury car
market - Answers-Mercedes has not created an illegal tying arrangement because it
does not have significant power in the luxury car market
Mike is director of sales for his company. He negotiates prices with Paige and Lauren,
who work for two of his biggest customers. Paige tells him she can buy the same
product cheaper elsewhere. He cuts the price for her, but not for his other customers. At
the same time, he develops a crush on Lauren, so offer to sell her the product at a lower
price. In subsequent months, these two customers come to dominate the market. Which
statement is correct. - Answers-Mike can charge whatever price he wants to any
customer
Sole proprietorships must file a tax return. - Answers-F
Ownership in a partnership is not transferrable - Answers-F
Creditors of a partnership must first seek recovery from partnership assets before going
after the personal assets of a partner. - Answers-F
In both a limited partnership and a limited liability partnership, the partners are not
personally liable for the debts of the partnership. - Answers-F
Venture capitalists often require companies they own to become LLCs before going
public. - Answers-F
CPA QUESTION: Assuming all other requirements are met, a corporation may elect to
be treated as an S corporation under the Internal Revenue Code if it has: - Answers-100
or fewer stockholder
A limited liability partnership: - Answers-Protects the partners from liability for the debts
of the partnership
A limited liability company: - Answers-Must register with state authorities
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