week 8 quiz 1

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 Week 8 Quiz - Chapters 17, 20, and 21 Results for Taylor Gibbs (D Correct answers are hidden. Score for this attempt: 68 out of 80 Submitted Nov 19 at 10:54am This attempt took 13 minutes. . 414 pt Question 1 pts Bruno, Lenny, and Carl work for the Duffie Bratwurst company as distributors. After a particularly long week at work, the trio decides to go to a bar to let off some steam. They are still wearing their Duffie Bratwurst uniforms at the time. While at the bar, they drink too much, become rowdy, and destroy some valuable property. Which of the following outcomes is most likely? Duffie Bratwurst has no recourse against the employees because they were off duty at the time. Duffie Bratwurst is responsible for the repairs to the bar but cannot discipline the workers because they were off duty at the time. Duffie Bratwurst can discipline the workers, including firing them for their actions. Duffie Bratwurst cannot discipline the workers because the workers were not on company property at the time of the incident. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 1/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 . 414 Question 2 /4 pts Congress created S corporations (S corps) to encourage entrepreneurship. Which of the following statements regarding S corps is true? Shareholders of S corps have both the limited liability of a corporation and the tax status of a flow-through entity. Shareholders of S corps have the liability of a partnership and the tax status of a flow-through entity. Shareholders of S corps have both the limited liability of a corporation and the tax status of a corporation. Shareholders of S corps have both the liability and the tax status of a partnership. . 414 Question 3 /4 pts Andrea was an up-and-coming music producer at Too Loud Productions. One night while out at the clubs, Andrea discovered a new singer, Dylan. Andrea approached Dylan after the show and gave him her card. Andrea offered to sign Dylan to a contract but told him that she still needed the approval of the New Talent Committee. Dylan celebrated his new deal by buying a new car. The next week, the New Talent Committee denies Andrea's request. Is Dylan entitled to damages? Yes, Andrea acted with apparent authority when offering Dylan the deal. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 2/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 Mohammad can share with Ceries the confidential information he knows about Estay's new product because he was directly involved in its development. Mohammad can share with Ceries the confidential information he knows about Estay's new product because his agency relationship with Estay is terminated. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because of the equal dignities rule. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because he has a duty not to disclose confidential information he acquired during the agency. Question 6 414 pts Devanie owns a retail business by herself and was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Devanie's potential liability? Devanie has no potential liability to the customer. Devanie can be held personally liable to the customer because she is the owner. Devanie can only be liable up to the amount she initially invested in the business. Devanie cannot be held personally responsible; the woman's insurance must pay for the claim. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 4/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 - 414 Question 7 /4 pts Fashions Inc. has 12 shareholders. There is no shareholder agreement concerning the board of directors. The company is subject to the Model Act. How many directors is Fashions Inc. required to have? None One Two Five - 4/4 Question 8 /4 pts An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule applies to conduct during working hours. during off-duty time. during both working hours and off-duty time. only by public officials. - 414 Question 9 /4 pts https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 5/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 corporate opportunity doctrine. duty of recognition. Incorrect Question 12 0/4pts Renee hires Benjamin to buy a rare antique car and stresses that it must have all original parts. After many months of searching, Benjamin finds the car Renee wants, but learns the car had one of its mirrors replaced recently. Benjamin decides not to tell Renee about the replacement because he knows that Renee will tell him to keep looking, and he believes the replacement was of minor consequence. Benjamin has breached his fiduciary duty to Renee. acted with common sense. executed an illegal contract. acted in the best interests of Renee, as finding the car as Renee wanted was impossible. Question 13 4/ 4 pts Courts have long ruled that corporate directors and officers owe a fiduciary duty to the corporation only. the corporation and its shareholders. shareholders only. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 711

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 society at large. - 4 neorract Question 14 074 pts The Federal Trade Commission requires franchisors to give prospective franchisees a franchise disclosure document at least 14 business days prior to the signing of a contract or payment of any money. give prospective franchisees earnings information on the company. disclose any litigation the company has ever been involved in. let prospective franchisees know how many franchisees have gone out of business in the prior five years. Question 15 414 pts In its most basic terms, a fiduciary relationship is one of trust. control. competition. disclosure. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 8/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 Jane and Paromita graduated law school together at the same time and are now looking to open their own firm specializing in small-scale commercial real estate sales. They live in a state that does not allow lawyers to operate as an LLC. What form of company should Jane and Paromita adopt? Limited liability partnership General partnership Corporation Professional corporation Question 19 4/4 pts Kyle is planning on starting a kite surfing business as a limited liability company (LLC) with his friends, Paxton and Daiki. Paxton runs a corporation that makes sails and wants to make his investment in the name of his company, Quick Sails Inc. Daiki, a French citizen living in Tahiti, wants to invest under his personal name. Which of the following statements is true? Only Paxton can invest, not Daiki. Only Daiki can invest, not Paxton. Both Paxton and Daiki can invest. Neither Paxton nor Daiki can invest. Question 20 4/ 4 pts https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 10/11

11/23/23, 3:04 AM Taylor Gibbs's Quiz History: Week 8 Quiz - Chapters 17, 20, and 21 A public company instituted a clawback policy. What does this mean? The company can require the CEO and CFO to reimburse the company for any bonus or profits they received from selling company stock within a year of the release of flawed financials. At least once every three years, companies must take a nonbinding shareholder vote on the compensation of the five highest-paid executives. The company is prohibited from expelling shareholders unless the firm pays a fair price for the minority stock and the expulsion has a legitimate business purpose. The company has decided that the compensation level of its executives is not in the company's best interests, so it reduces all executive pay levels by a certain percentage. https://canvas.strayer.edu/courses/4925/quizzes/98551/history?version=1 11/11