Business Law and Ethics Quiz

What are the four elements of a contract?

• Agreement, Payment, Approval, Legal Consequence

• Negotiation, Approval, Payment, Legal Binding

• Proposal, Agreement, Compensation, Legal Consequence

• Offer, Acceptance, Consideration, Intention of Legal Consequence

What does a breach of contract refer to?

• When the contract is extended

• When the contract is renegotiated

• When the contract is cancelled

• When the terms of the contract are broken

What do Antitrust Laws support in a free market economy?

• Monopolies

• Fair business practices

• Unfair competition

• Government intervention

Which agency enforces Securities laws for publicly traded stocks and bonds?

• Environmental Protection Agency (EPA)

• U.S. Department of Labor (DOL)

• U.S. Securities and Exchange Commission (SEC)

• Internal Revenue Service (IRS)

What does the U.S. Equal Employment Opportunity Commission (EEOC) enforce?

• Environmental regulations

• Federal laws against unfair employment practices

• Consumer protection laws

• Antitrust laws

What is a code of ethics in business?

• A document that dictates how business should be conducted

• A marketing plan

• A legal contract between businesses

• A financial statement

What does confidentiality mean in a business context?

• Specific information about a company or its employees is never shared, except with those who have clearance to receive it

• Sharing all information openly with the public

• Keeping information only within the management team

• Not disclosing financial data

What is the purpose of the Federal Trade Commission (FTC)?

• Overseeing environmental regulations

• Enforcing laws that uphold truth in advertising

• Regulating labor laws

• Managing financial institutions

What does social responsibility in business entail?

• Focusing solely on competition

• Ignoring ethical considerations

• Maximizing profits at all costs

• Behaving with sensitivity to social, environmental, and economic issues

What is the Law of Supply and Demand?

• Determines the price of goods and services based on the relationship between supply and demand

• Regulates international trade agreements

• Controls interest rates

• Sets minimum wage standards