LEGAL ENVIRONMENT OF BUSINESS ACTUAL EXAM TEST BANK QUESTIONS AND ANSWERS
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LEGAL ENVIRONMENT OF BUSINESS
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LEGAL ENVIRONMENT OF BUSINESS
LEGAL ENVIRONMENT OF BUSINESS ACTUAL EXAM TEST BANK QUESTIONS AND ANSWERS
What is one of the primary responsibilities of the Federal Trade Commission (FTC)?
a. Regulating food safety standards
b. Protecting consumers from deceptive advertising and practices
c. Approving new pharmaceutical ...
LEGAL ENVIRONMENT OF
BUSINESS ACTUAL EXAM TEST
BANK QUESTIONS AND ANSWERS
What is one of the primary responsibilities of the Federal Trade Commission (FTC)?
a. Regulating food safety standards
b. Protecting consumers from deceptive advertising and practices
c. Approving new pharmaceutical drugs
d. Enforcing workplace safety laws - Answer-b. Protecting consumers from deceptive
advertising and practices
How does the FTC promote competition in the marketplace?
a. By approving mergers without review
b. By enforcing antitrust laws to prevent monopolies
c. By setting prices for consumer goods
d. By managing labor disputes - Answer-b. By enforcing antitrust laws to prevent
monopolies
Which of the following is NOT an FTC responsibility?
a. Investigating identity theft and scams
b. Reviewing mergers and acquisitions
c. Regulating workplace safety
d. Preventing unfair business practices - Answer-c. Regulating workplace safety
The FTC provides resources to help consumers:
a. Manage their taxes
b. Identify and avoid fraudulent schemes
c. Apply for small business loans
d. File for bankruptcy - Answer-b. Identify and avoid fraudulent schemes
When the FTC enforces antitrust laws, what is its primary goal?
a. To increase the cost of goods and services
b. To promote fair competition and prevent monopolies
c. To regulate environmental protection standards
d. To oversee international trade agreements - Answer-b. To promote fair competition
and prevent monopolies
, What could happen if a business misclassifies an employee as an independent
contractor?
a. The worker receives additional benefits.
b. The IRS imposes penalties and demands back taxes.
c. The business is exempt from providing employee benefits.
d. The classification can be corrected without consequences. - Answer-b. The IRS
imposes penalties and demands back taxes.
Financial control is a key factor in worker classification. Which scenario suggests the
worker is an independent contractor?
a. The worker's expenses are reimbursed by the employer.
b. The worker is paid a regular salary regardless of performance.
c. The worker can realize a profit or incur a loss based on their own financial decisions.
d. The employer deducts Social Security and Medicare taxes from the worker's
paycheck. - Answer-c. The worker can realize a profit or incur a loss based on their own
financial decisions.
How does the IRS determine whether a worker is an independent contractor or an
employee?
a. By the worker's job title
b. By evaluating control over behavioral, financial, and relationship aspects
c. By the number of hours worked
d. By the length of time the worker has been with the company - Answer-b. By
evaluating control over behavioral, financial, and relationship aspects
What is the primary role of an agent in a legal or financial context?
a. To act on behalf of another person with legal authority in specific matters
b. To make personal decisions for another individual
c. To transfer property ownership without documentation
d. To provide tax advice - Answer-a. To act on behalf of another person with legal
authority in specific matters
What is the purpose of a Power of Attorney (POA)?
a. To allow a person to make decisions for themselves in a court of law
b. To authorize someone to act on another's behalf in financial, legal, or tax matters
c. To grant permanent ownership of assets to another party
d. To restrict an agent's authority to act independently - Answer-b. To authorize
someone to act on another's behalf in financial, legal, or tax matters
Which of the following is true about duties of agents under the IRS?
a. Agents must always act in the best interests of the principal.
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