Q&A Hero

Q: Which of the following is true about limitation on state taxation? A. Taxes imposed by federal government are subject to the limitations imposed by the commerce clause. B. Sales or use taxes levied by state and local governments on interstate commerce are exempt from the limitations. C. Taxation distributes the cost of government among those who receive its benefits. D. The limitations do not apply to property tax and income tax. E. Interstate commerce is exempt from state and local taxes.

Q: A. is the term used to refer to the police powers being limitless. B. does not allow the state regulation to violate commerce clause. C. refers to the exclusive Congressional authorization on a matter of trade. D. comes into focus when the state is acting in the business. E. permits the state regulation to be arbitrary. The police powers are not limitless. For example, state regulations must not be arbitrary, capricious, or unreasonable. Furthermore, the state regulation must not violate the commerce clause. These limitations imposed by the U.S. Constitution are referred to as the dormant commerce clause concept.

Q: Which of the following is true about exclusively federal area of government regulation? A. It concerns those internal matters where uniformity on a nationwide basis is essential. B. In this area, state regulation is permitted if the Congress has failed to expressly regulate the area. C. It concerns those matters that are exclusively within the states' power. D. It includes intrastate activities that do not have a substantial effect on interstate commerce. E. It concerns those subjects over which the federal government has preempted the field.

Q: An exclusively state area of government regulation: A. concerns those internal matters where uniformity on a nationwide basis is essential. B. permits state regulation is permitted if the Congress has expressly regulated the area. C. includes situations in which the federal regulation of a subject matter is not comprehensive enough to preempt the field. D. includes intrastate activities that do not have a substantial effect on interstate commerce. E. concerns those subjects over which the federal government has preempted the field.

Q: Which of the following legislations prohibits any physician the legal right to prescribe controlled substances for the purpose of assisting suicide? A. ODWDA B. TADA C. CSA D. WDWDA E. DDNC

Q: Indirect or direct attempts by state and local governments to regulate foreign commerce to some degree are considered _____. A. legal B. ethical C. unconstitutional D. immoral E. constitutional

Q: Under the regulation of interstate commerce: A. the states have the exclusive power to commerce that passes across their lines. B. activities affecting interstate commerce do not come under the power of the deferral government. C. regulation on any activity is appropriate if it aids interstate commerce. D. intrastate activities affecting interstate commerce can be regulated only by the state governments. E. the Congress cannot regulate a local activity.

Q: The _____ has stated that everyone must have health insurance coverage beginning in 2014. A. Health Care Act of 2010 B. Health Insurance Portability Act of 1996 C. Healthy American Act of 2007 D. Occupational Safety and Health Act of 1970 E. Affordable Care Act of 2010

Q: By requiring state legislation and regulation to protect the public's health, safety, morals, and general welfare, _____ give(s) state governments expansive power to regulate business activities. A. eminent domain B. Presidential authority C. commerce clause D. police powers E. federal authority

Q: Which of the following is true about police powers? A. These powers have given the federal government expansive power to regulate business. B. The powers sometimes allow the state regulations to be arbitrary. C. The powers help protect the public's health, safety, morals, and general welfare. D. The powers allow the state regulation to violate the commerce clause. E. These powers have no limitations.

Q: Regulation decreases the cost of government.

Q: Cost of paperwork contributes the least to the additional costs to the business community.

Q: The primary focus of policymaking by way of social regulation has been on balancing the costs of the programs with their potential benefits.

Q: Which of the following is true about regulation of foreign commerce? A. The power to regulate foreign commerce is vested exclusively in the state governments. B. The power to regulate foreign commerce is incomplete. C. The federal government has no right to prohibit foreign commerce entirely. D. Local governments can never attempt to regulate foreign commerce. E. The federal may impose restrictions on foreign commerce.

Q: The chairperson usually signs orders and official correspondence and is responsible for publication of all actions in the Federal Register.

Q: Any party seeking the judicial review of any administrative agency's decision must be able to prove standing to sue.

Q: Group of persons with standing to sue includes those who have noneconomic interests.

Q: The general language used in delegating quasi-judicial authority usually involves grants of substantial discretion to an agency.

Q: The procedures developed by administrative agencies are less formal than judicial procedures.

Q: The doctrine of exhaustion of remedies comes into play whenever enforcement of the claim requires the resolution of issues that, under a regulatory scheme, have been placed within the special competence of an administrative body.

Q: Agencies exercise their quasi-legislative power by issuing rules and regulations that have the force and effect of law.

Q: When state law is inconsistent or conflicts irreconcilably with the federal statute, it is constitutional.

Q: An administrative agency of quasi-legislative regulatory authority is empowered to make decisions like a court.

Q: The Environmental Protection Agency (EPA) regulates civil aviation to provide safe and efficient use of airspace.

Q: Congress uses more and more general language in stating its regulatory aims and purposes.

Q: Requiring state legislation and regulation to protect the public's health, safety, morals, and general welfare gives state governments expansive power to regulate business activities.

Q: The police powers are limitless, sometimes allowing the state government to be arbitrary, capricious, or unreasonable.

Q: The limitations imposed by the U.S. Constitution are referred to as the dormant commerce clause concept.

Q: The internal matters where uniformity on a nationwide basis is essential are exclusively the concern of the state.

Q: When a federal statute preempts a particular area of regulation, the state regulation related to the same subject is void.

Q: Regulation is considered appropriate if it aids intrastate commerce over interstate commerce.

Q: The Health Care and Education Reconciliation Act of 2010 requires that everyone have health insurance coverage beginning in 2014.

Q: The state and local government authority to regulate business activity arises from a concept called the eminent domain.

Q: The Commerce Clause holds that states cannot impede interstate commerce.

Q: The power of the federal government includes the persons engaged in interstate commerce but not the activities affecting the interstate commerce.

Q: Under the Commerce Clause, the Congress is prevented from regulating an activity labeled local or intrastate.

Q: Intrastate activities affecting the interstate commerce are regulated by the Congress.

Q: The indirect or direct attempts of the state to regulate imports and exports are unconstitutional.

Q: The creation of a partnership requires permission from each state in which it does business.

Q: A common interest in business is one of the satisfying definitional elements of partnership existence.

Q: The Commerce Clause gives rise to the federal government's power to regulate business activity.

Q: The Commerce Clause requires analysis of the regulation of commerce among several states.

Q: The power to regulate foreign commerce is vested exclusively in the state government.

Q: One of the advantages for a proprietor is that he may transfer the ownership of his proprietorship whenever desired.

Q: A sole proprietor has limited liability for the obligations of the proprietorship.

Q: A sole proprietorship is not taxed as an organization.

Q: Whenever two or more people wish to own a business together, a joint venture is a possible organizational form.

Q: Partnership is the most easily formed business organization compared to all others.

Q: A dissolution is any change in the ownership of an organization that changes the legal existence of the organization.

Q: The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and the organization to fail.

Q: Although expensive to create, the use of sole proprietorships is becoming all the more common.

Q: A business might shift away from the proprietorship form as it becomes more successful.

Q: Factor continuity refers to the legal steps necessary to form a particular business organization.

Q: One of the newer trends in corporate governance is the concept of say-on-pay. What is say-on-pay and how does it affect corporate governance?

Q: The three basic forms of business organizations are limited partnerships, S corporations, and limited liability companies.

Q: Family-owned and family-operated businesses are common examples of publicly held organizations.

Q: Corporate form of organizations enables shareholders to transfer their ownership without interfering with the organization's management.

Q: Usually, the cost of creation of a business entity is not a major factor in considering which form of operation to choose.

Q: What are the drawbacks of corporate form of organization?

Q: You have been asked to join a partnership. What must you consider when choosing to become a general or limited partner?

Q: What are some of the business activities a limited partner may engage in? A limited partner may participate in the following activities and not be considered participating in management: being an agent or employee of the partnership; being a consultant; a guarantor of partnership debt; inspecting the books;

Q: What are the advantages of an S corporation?

Q: Identify the degrees of liability and taxation faced by an LLC.

Q: What are the techniques employed by corporations to avoid double taxation?

Q: How is a corporation form of organization identified with regard to where it has been incorporated?

Q: What are the steps that must be taken in order to form a corporation and what are the typical types of costs involved?

Q: What must a corporation do if it wishes to conduct business in states other than the state of incorporation?

Q: How is control decided in publicly held and closely held corporations?

Q: Are partnerships taxable entities? Explain.

Q: To what extent are partners in a general partnership liable for the organization's debts?

Q: What is the purpose of a buy and sell agreement and when are they needed?

Q: How is the liability factor a disadvantage of sole proprietorship?

Q: Explain the possible organizational form that occurs when two or more people wish to own a business together.

Q: Other than a sole proprietorship, why is partnership easy to form when compared to other forms of business organizations?

Q: How continuous is a partnership form of business organization?

Q: Which of the following is true about the trends in operating business organizations? A. With the recent financial crises, public attention is moving toward management of limited partnerships. B. Shareholders are losing interest and are becoming less active. C. The Dodd-Frank Act has mandated rules that prevent shareholders from including their own board candidates in proxy materials. D. In many cases, corporations and individuals reasonably have an equal claim to rights and protections under the law. E. The focus on legal liability for directors and officers is decreasing.

Q: How can business organizations be classified based on the number of persons who own them? Give one example of each.

Q: What factors should be considered when selecting the best organizational form for a particular business?

Q: Explain the term "creation" as a factor considered when selecting a business organizational form.

Q: Explain sole proprietorship in terms of its continuity.