MGT 340: Final Exam Davis

Mens rea is:

a.The actual criminal act

b.Not required for proof of a crime

c.Only required for common-law crimes

d.None of the above

None of the above

Bob, carol, and Ted have decided to business as a limited partnership importing and selling spices. Bob and Carol manage the business and Ted will have no day-to-day operations. Bob and Carol each invested $500,000 and Ted has contributed the building and land that the business will operate from. Alice, a customer, contracts a rare disease from a contaminated spice sold from them. Alice is awarded a judgement for 5 million. After she exhausts the assets of the partnership, having the property and building sold and seizing all other property, $3 million remains unpaid.

a.Bob, Carol, and Ted each owe $1 million and Alice must sue each for his or her part

b.Bob, Carol, and Ted each owe $3 million jointly and severally, so Alice may sue one, two or all 3 for the $3 million balance

c.Bob and Carol each owe $1.5 million and Alice must sue each for his or her part; Ted has no additional liability

d.Bob and Carol each owe $3 million jointly and severally, so Alice may sue one or both of them; Ted has no additional liability

Bob and Carol each owe $3 million jointly and severally, so Alice may sue one or both of them; Ted has no additional liability

A disadvantage of the sole proprietorship is:

a.The difficulty of formation

b.The inflexibility of management and control

c.The unlimited liability of the owner

The unlimited liability of the owner

In Kentucky, corporate paperwork is filed with:

a.Circuit Clerk's Office

b.Secretary of State's Office

c.Secretary of Commerce's Office

d.Office of Commercial Trade

Secretary of State's Office

Evidence obtained from an illegal search may not be used against the defendant. This is called:

a.The Exception Rule

b.The Technicality Rule

c.The Exclusionary Rule

d.The Forbidden Rule

The Exclusionary Rule

The amendment requires probable cause with respect to searches and seizures:

a.4th

b.5th

c.6th

d.8th

4th

Which of the following does not require two or more owners?

a.Limited partnership

b.Limited liability partnership

c.Corporation

d.None of the above

None of the above

Murder is the killing of a human being with malice aforethought. Malice aforethought is the premonition and planning of the crime. Malice aforethought shows that one considered the consequences of their actions and knowingly committed the crime. The malice aforethought would be the:

a.Actus rea

b.Mens rea

c.Voir dire

d.Indictment

Mens rea

For income taxes purposes, a corporation:

a.Files a return and pays taxes

b.Does not pay taxes itself

c.Is subject to triple taxation

d.None of the above

Files a return and pays taxes

Which one of the following is an incorrect statement?

a.A corporation may file suit in its own name without the owners filing suit

b.A corporation may form a contract in its own name without the owners guarantee the contract

c.A corporation can be sued without the owners being sued

d.A corporation may not incur obligations separate from those of its owners

A corporation may not incur obligations separates from those of its owners

Steve has graduated and wants to start a business. Which business entity gives him the most complete and exclusive control over the business and any business decisions?

a.Sole proprietorship

b.Limited liability partnership

c.Corporation

d.General partnership

Sole Proprietorship

Creation and internal governance of corporations is governed by:

a.State laws

b.Federal laws

c.Constitutional law

d.Common law

State laws

Which of the following gives a person the right to vote at an annual meeting?

a.A debenture

b.A share of stock

c.A bond

d.A promissory note

A share of stock

The corporation is considered to come into existence when:

a.The board adopts bylaws

b.The officers are chosen

c.The organizational meeting has commenced

d.The state accepts the articles of incorporation and issues a certificate of incorporation

The state accepts the articles of incorporation and issues a certificate of incorporation

The amendment that guarantees a speedy pubic trial is the:

a.4th

b.5th

c.6th

d.8th

6th

Dan is an investment manager. He has received money from investors with the promise of very high returns. He uses money given from investors to pay back other investors. Dan is:

a.Operating an insider- trader operation

b.Racketeering

c.Guilty of conspiracy to defraud

d.Operating a Ponzi scheme

Operating a Ponzi scheme

Harry wants to start a personal training business. He should choose a sole-proprietorship entity if he seeks:

a.Limited liability

b.Perpetual existence for the new company

c.The ability to raise capital by selling equity in the business

d.The ability to avoid management conflict

The ability to avoid management conflict

In a general partnership:

a.Profits and losses must be split equally among the partners

b.An unequal split of profits may be agreed to based on the partnership agreement, but losses must be split equally

c.Profits must be split equally, but losses may be split unequally based on partnership agreement

d.Profits and losses may be unequally split based on the partnership agreement

An unequal split of profits may be agreed to based on the partnership agreement, but losses must be split equally

Fred and Barney have incorporated and obtained a $100,000 loan, payable with interest over five years, in the corporate name. After paying on the loan regularly for two years, the business falters due to the economy, and they default on their loan. Their business has no assets.

a.Fred and Barney are jointly and severally liable for the entire balance

b.Fred and Barney are each individually liable for one quarter of the debt, with the corp liable for the remaining half

c.Fred and Barney are each individually liable for one-third of the debt, with the corporation liable for the remaining third

d.Fred and Barney have no personal liability for the debt

Fred and Barney have no personal liability for the debt

A limited partnership requires:

a.At least two general partners

b.At least two limited partners

c.A written limited partnership agreement

d.At least one general and one limited partner

At least one general and one limited partner

The document filed with the state that begins the incorporation process in the majority of states is called the:

a.Articles of incorporation

b.Declaration of incorporation

c.Statement of incorporation

d.Certificate of incorporation

Articles of incorporation

From most serious to least serious, crimes are classified as the following:

a.Misdemeanors/violations/felonies

b.Felonies/misdemeanors/violations

c.Violations/misdemeanors/felonies

d.Violations/felonies/misdemeanors

Felonies/misdemeanors/violations

The owners of a corporation are the:

a.Promoters

b.Officers

c.Board of directors

d.Shareholders

Shareholders

The oldest hybrid is:

a.Limited liability partnership

b.Limited liability corporation

c.Limited partnership

d.Corporations

Limited partnership

In an LLP, any income is taxed:

a.When distributed to shareholders

b.At the end of the fiscal year

c.At the level of the entity

d.Only when distributed to its partners

Only when distributed to its partners

The adjudicative phase of the criminal justice process includes each of the following components except:

a.Police interview

b.Entering a plea by the defendant

c.The jury trial

d.Sentencing

Police interview

Officers are responsible for the daily running of the corporation

True

Limited partners expose themselves to unlimited liabilities but get to participate in the management decisions of the limited partnership

False

A derivative action is where a shareholder may purchase enough newly issued stock to maintain their same percentage of ownership as before the new issuance

False

If the jury is deadlocked and cannot come to a decision at the end of a trial, the prosecutor may not bring charges to retry the defendant due to the defendant's double-jeopardy protection under the Constitution

False

One benefit of a cooperation is that there is no double taxation

False

General partnerships are pass-through entities regarding taxation; however, limited partnerships are not pass-through entities for taxes

False

Criminal law regulates the rights and duties between private parties

False

The name of the corporation and the name and the address of the corporation's registered agency must be included in the articles of organization

False

Fred has been charged with a crime where the maximum punishment is a fine and up to 5 years in jail. The crime he has been charged with is a misdemeanor

False

A corporation exists as an independent entity separate from its owner

True

Wayne Lewis wants to start a sole proprietorship named Lewis Plumbing Services. Because it will be a sole proprietorship, Wayne has no filing requirements to legally exist as a sole proprietorship

False

Shareholders are the owners of the corporation and, in part, act principally through electing and removing officers

False

Even if parties have no intent to form or operate as a partnership, their conduct may result in the law recognizing them as partners

False

Fourth amendment protection does not extend to items located in plain view

True

Two of the major functions of criminal law in general are to remove criminals from society and punish those who commit crimes

True

Hot pursuits is an exception to the Fifth Amendment search warrant requirement

False

The judge determines whether a crime is a misdemeanor or a felony

False

The Crime Control Model of analyzing confessions focuses on the idea that people do not generally confess to crimes they did not commit

True

If a manager encourages an employee to commit a criminal act, both the manager and employee who commits the criminal act can be prosecuted

True

Sole proprietorships may sell equity in the company in order to raise funds

False

Courts have been very reluctant to extend reasonable expectations of privacy rights to homes

True

The rights to confront witnesses through cross-examination is contained in the Fifth Amendment

False

In all forms of business entities, the entity itself pays taxes on money earned by or through the entity

False

The Fifth and Sixth amendments give a criminal suspect the right to an attorney

True

The Fourth Amendment prevents excessive fines from being imposed in criminal

False

Promoters are often used to raise capital and file the corporate paperwork

True