Chapter 1
The Legal Environment
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank,
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. There is really no reason to be acquainted with business laws and government
regulations, except to pass this test.
ANSWER: F PAGE: 3 TYPE: N
BUSPROG: Reflective AICPA: BB-Critical Thinking
2. Law consists of enforceable rules governing relationships among individuals and
between individuals and their society.
, ANSWER: T PAGE: 3 TYPE: =
BUSPROG: Analytic AICPA: BB-Legal
3. Laws and government regulations affect almost all business activities.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Critical Thinking
,4. Many different laws may apply to a single business transaction.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Critical Thinking
5. Businesspersons are expected to make decisions that are ethically sound.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Legal
6. Being a small-business owner means that you will never have to take on the role
of finance manager, marketing manager or accountant.
ANSWER: F PAGE: 6 TYPE: N
BUSPROG: Reflective AICPA: BB-Critical Thinking
7. State laws are the supreme law of the United States.
ANSWER: F PAGE: 6 TYPE: +
BUSPROG: Analytic AICPA: BB-Legal
8. The federal government and the states have the same constitution.
ANSWER: F PAGE: 6 TYPE: N
BUSPROG: Analytic AICPA: BB-Legal
9. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 6 TYPE: =
, BUSPROG: Analytic AICPA: BB-Legal
10. State constitutions are supreme within their respective borders.
ANSWER: T PAGE: 6 TYPE: +
BUSPROG: Analytic AICPA: BB-Legal
The Legal Environment
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank,
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. There is really no reason to be acquainted with business laws and government
regulations, except to pass this test.
ANSWER: F PAGE: 3 TYPE: N
BUSPROG: Reflective AICPA: BB-Critical Thinking
2. Law consists of enforceable rules governing relationships among individuals and
between individuals and their society.
, ANSWER: T PAGE: 3 TYPE: =
BUSPROG: Analytic AICPA: BB-Legal
3. Laws and government regulations affect almost all business activities.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Critical Thinking
,4. Many different laws may apply to a single business transaction.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Critical Thinking
5. Businesspersons are expected to make decisions that are ethically sound.
ANSWER: T PAGE: 4 TYPE: N
BUSPROG: Analytic AICPA: BB-Legal
6. Being a small-business owner means that you will never have to take on the role
of finance manager, marketing manager or accountant.
ANSWER: F PAGE: 6 TYPE: N
BUSPROG: Reflective AICPA: BB-Critical Thinking
7. State laws are the supreme law of the United States.
ANSWER: F PAGE: 6 TYPE: +
BUSPROG: Analytic AICPA: BB-Legal
8. The federal government and the states have the same constitution.
ANSWER: F PAGE: 6 TYPE: N
BUSPROG: Analytic AICPA: BB-Legal
9. A state law that conflicts with the U.S. Constitution will be deemed
unconstitutional.
ANSWER: T PAGE: 6 TYPE: =
, BUSPROG: Analytic AICPA: BB-Legal
10. State constitutions are supreme within their respective borders.
ANSWER: T PAGE: 6 TYPE: +
BUSPROG: Analytic AICPA: BB-Legal
