BUS 415 Final Exam Questions and Answers 100% Correct

1) Monica owed Bob $500 for a business investment, which was more than a year overdue. Bob got drunk at a party and told everyone that Monica had owed him $500 for over a year. Can Monica recover from Bob for defamation? A. Yes, because Bob abused his conditional privilege. B. No, because Bob was telling the truth. C. Yes, because Bob communicated the statement to third persons. D. No, because Bob had been drinking. 2) What is the definition of a tort? A. Any violation of an ethical duty B. Any crime or misdemeanor C. Any action done in violation of a prior agreement, which allows the victim to recover damages D. Any civil wrong that allows the injured person to recover damages 3) Pete and Vicky make the following agreement: Pete promises he will go into a store, buy something for $5, and pay for it with a $100 bill on which he has written “Happy Birthday Vicky!” Vicky promises that after Pete collects his change and leaves the store, she will go into the same store, buy something that costs $5, and pay with a $10 bill. When the clerk attempts to give her change for $10, Vicky will claim that the $100 bill that is in the cash register was money she just received for her birthday, and will demand change from a $100 bill. Then Pete and Vicky will split the extra money they think Vicky will receive in change. Is this a valid contract? A. This is a valid contract. There was a promise in exchange for a promise, and both parties got what they wanted. C. This is a voidable contract because Vicky can change her mind. D. This is not an enforceable contract because the agreement is not in writing. 4) An easement can be defined as A. a limited right to use another person’s land for a specified purpose B. a relaxation of the borderlines between two parcels of land C. a life estate in the property of another D. an option to purchase the land of another 5) Huey, Dewey, and Louie own a building as tenants in common. Huey lives in the building. Without consulting the other two owners, Dewey deeds his interest in the building to Joe. What will be the outcome of this situation? A. Huey, Louie, and now Joe will own the property as tenants in common. B. Huey and Louie will still own the property as tenants in common, but Joe will have a reversionary interest. C. The transfer of the interest to Joe will be ineffective because the other two did not consent. D. Joe will make Huey pay rent. 6) Which of the following best describes the benefits of a limited liability company (LLC)? A. LLC managers are not personally liable for debts, obligations, and liabilities of the LLC. B. LLCs have limited duration. C. Documents do not have to be filed with the state to create an LLC. D. LLCs are automatically taxed like corporations. 7) Which of the following is true when a general partnership is converted to an LLC? A. The property must be sold to a third party who then immediately sells it to the LLC. B. The conversion can be made retroactive for up to 2 years. C. The profit and loss sharing terms must remain the same as they were in the partnership. D. The general partners will retain unlimited personal liability for obligations incurred while the business was a partnership.