CNA CNA Business Law and Ethics

Question 1

Under the Uniform Commercial Code (UCC), a contract for the sale of goods valued at $500 or more must generally be:

Accepted Answer

In writing to be enforceable

Answer

Witnessed by a notary

Answer

Approved by a government agency

Answer

Accompanied by a formal invoice

Question 2

Which ethical framework judges the morality of an action solely by its outcomes or consequences?

Accepted Answer

Consequentialism

Answer

Deontological ethics

Answer

Virtue ethics

Answer

Divine command theory

Question 3

An agency relationship in business law requires which of the following elements?

Accepted Answer

Consent, control, and action on behalf of another party

Answer

A written contract and notarization

Answer

Registration with a state licensing board

Answer

Payment of consideration to the agent

Question 4

The Sarbanes-Oxley Act (SOX) was enacted primarily to address:

Accepted Answer

Corporate accounting scandals and enhance financial reporting integrity

Answer

Foreign corrupt payment practices by U.S. companies

Answer

Securities trading rules for hedge funds

Answer

Antitrust violations in monopoly markets

Question 5

Which type of business entity provides its owners with limited liability protection while allowing profits to be taxed only at the owner level?

Accepted Answer

Limited liability company (LLC)

Answer

General partnership

Answer

C corporation

Answer

Sole proprietorship

Question 6

In contract law, consideration is best defined as:

Accepted Answer

Something of legal value exchanged by both parties

Answer

The signature of both parties on the contract

Answer

A written description of the goods or services

Answer

A penalty clause for non-performance