BF130 Quiz 2 Review

A business organization form that is represented by an agreement between two or more persons who have equal management authority and whose personal assets may be claimed by the business creditors is called what?

• Corporation

• LLC

• Company

• General Partnership

The theft of funds or property belonging to another individual or entity

• Larceny

• Robbery

• Embezzlement

• Account Fraud

Katrin is a CFO of a large company. Knowing that there is going to be a tax evasion investigation, she asks her assistant Bart to shred tax documents and destroy the corporate audit recordings. Asking Bart to commit this crime is an example of what?

• Data Fraud

• Aiding and Abetting

• Bank Fraud

• Conspiracy

Which of the following does NOT refer to the examples of white-collar crimes?

• Robbery

• Bank Fraud

• Larceny

• Making False Statements

Which of the following legislative acts creates strict liability for any insider making a profit on issuer’s securities during any six-month period?

• Private Securities Litigation Reform Act of 1995

• Sarbanes—Oxley Act of 2002

• Securities Exchange Act of 1934

• Insider Trading and Securities Fraud Enforcement Act of 1988

Which of the following is NOT a legal form of business?

• Sole Proprietorship

• Partnership

• Corporation

• Friendship

Insider trading falls under which category of crimes?

• White-collar crimes

• Blue-collar crimes

• Corporate crimes

• Violent crimes

What is the main advantage of forming a corporation?

• No taxes on corporate income

• Limited liability for its owners

• No need for a formal structure

• Unlimited life of the business

____ always requires a formal agreement between the people involved in it.

A situation in which the defendant does not accept or deny responsibility for the charges but agrees to accept punishment is called_____