BUSA Exam Questions with All correct Answers Latest 2024 Update
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BUSA
Institution
BUSA
BUSA Exam Questions with All correct Answers Latest 2024 Update
Which of the following statements is not true about a public offering? - Answer- 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 ...
BUSA Exam Questions with All
correct Answers Latest 2024
Update
Which of the following statements is not true about a public offering? - Answer-
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 - Answer- 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 - Answer- 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. - Answer- Mike can charge whatever price he wants to any
customer
Sole proprietorships must file a tax return. - Answer- F
Ownership in a partnership is not transferrable - Answer- F
Creditors of a partnership must first seek recovery from partnership assets before going
after the personal assets of a partner. - Answer- F
In both a limited partnership and a limited liability partnership, the partners are not
personally liable for the debts of the partnership. - Answer- F
Venture capitalists often require companies they own to become LLCs before going
public. - Answer- 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: - Answer- 100
or fewer stockholder
A limited liability partnership: - Answer- Protects the partners from liability for the debts
of the partnership
A limited liability company: - Answer- Must register with state authorities
Joint and several liability means that: - Answer- A creditor of the partnership can
recover the full amount owed from the partnership and from each partner, even if this
results in the creditor receiving more than his original debt
While working part time at a Supercorp restaurant, Jenna spills a bucket of hot French
fries on a customer. Who is liable to the customer? - Answer- Both Jenna and
Supercorp
A corporation can be formed in any state or under the federal corporate code. - Answer-
F
Shareholders and stockholders are the same thing. - Answer- T
Most companies use a very broad purpose clause in their charter. - Answer- T
Shareholders have the right to manage the corporate business. - Answer- F
A company must include in its proxy materials the names of all shareholder nominees
for the board of directors. - Answer- F
A promoter is liable for any contract he signs on behalf of a corporation before it is
formed, unless: - Answer- The other party agrees to a novation
CPA QUESTION: A corporate stockholder is entitled to which of the following rights? -
Answer- Approve dissolution
CPA QUESTION: Generally, a corporation's articles of incorporation must include all of
the following except: - Answer- Quorum requirements
Generally, a corporation's bylaws include all of the following except: - Answer- Par value
of the stock
Under the duty of care, directors will be liable if they: - Answer- Engage in illegal
behavior that is profitable to the company
Auditors are liable under the 1933 Act only if they intentionally misrepresent financial
statements. - Answer- F
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