D216 Business Law for Accountants, WGU (Western
Governors University), 2024–2025 – Complete
Diagnostic Practice Questions with Correct Answers
Introduction:
This document contains a comprehensive set of diagnostic practice
questions with fully correct answers for the D216 Business Law for
Accountants course at WGU. It covers core topics including agency law,
contracts, liens, bankruptcy, intellectual property, business
organizations, securities regulation, administrative law, and consumer
protection, making it ideal for exam preparation and concept review.
Exam Questions and Answers:
16. Roland files a petition in bankruptcy. After all his assets have been
sold and the proceeds distributed among his creditors, Roland's
remaining debts
a. are discharged.
b. will be paid by the court.
c. must be paid by Roland.
d. are put on hold until Roland has sufficient means to pay them---
Correct Answer--- a. are discharged.
17. Patsy files a petition in bankruptcy. At the moment of filing
a. an automatic stay goes into effect.
b. Patsy's debts are discharged.
c. Patsy's petition is dismissed.
,d. Patsy's property is distributed to her creditors---Correct Answer---
a. an automatic stay goes into ettect.
18. Thirty-one days before filing a petition in bankruptcy, Gavin
transfers prop- erty and makes payments that favor one creditor over
another. These are
a. affirmation agreements.
b. preferences.
c. secured interests.
d. unsecured debts---Correct Answer--- b. preferences.
19. Daniel is a trustee for a federal bankruptcy court. Daniel's duties
include
a. collecting the debtor's available estate.
b. establishing priority for the payment of unsecured creditors.
c. operating a debtor's business to obtain maximum profit for
creditors.
d. submitting to an examination under oath by the creditors---Correct
Answer--- a. collecting the debtor's available estate.
20. Tully files a petition for bankruptcy. Tully must include with the
petition
a. proof of each creditor's claim.
b. a list of creditors and the amount of the debt owed to each.
c. all of his debit and credit cards to be disposed of by the court.
d an affidavit testifying to his having read the Bankruptcy Code---Correct
Answer--- b. a list of creditors and the amount of the debt owed to each.
, 21. Ace Widget Company created a product it called the Wizzo brand of
widget, and began selling it around the nation, but its attorney forgot to
register that trademark. The following year Barrett Widget Company
began to sell a product it called the Wizzo widget. Ace sues for
infringement of its trademark. Most likely:
a. Ace will lose because it did not register the mark.
b. Ace will lose because the two names are not identical.
c. Both b and c are reasons for Ace to lose.
d. Ace will win because it was the first user and the second mark was
similar enough to cause confusion---Correct Answer--- d. Ace will win
because it was the first user and the second mark was similar enough to
cause confusion.
22. Charlie Corrigan owned a restaurant, and wanted to choose a good
service mark for his restaurant. Which of these is the strongest mark?
a. Corrigan's, because it is his own proper name.
b. Charlie's Place, because it is a more generic name.
c. CCs Chow, because it is more distinctive.
d. There is no way to get a service mark for a restaurant---Correct
Answer--- c. CCs Chow, because it is more distinctive.
23. Ace Widget Company's "Wizzo" widgets become so popular that,
over the years, consumers have begun to call all widgets "wizzos." At
times, other companies have used the name "wizzo" in their advertising,
saying things like "our products work like wizzos," but Ace did not seek
legal relief against that advertising as it was too expensive to do so. Ace
is:
a. The owner of a very powerful mark.
Governors University), 2024–2025 – Complete
Diagnostic Practice Questions with Correct Answers
Introduction:
This document contains a comprehensive set of diagnostic practice
questions with fully correct answers for the D216 Business Law for
Accountants course at WGU. It covers core topics including agency law,
contracts, liens, bankruptcy, intellectual property, business
organizations, securities regulation, administrative law, and consumer
protection, making it ideal for exam preparation and concept review.
Exam Questions and Answers:
16. Roland files a petition in bankruptcy. After all his assets have been
sold and the proceeds distributed among his creditors, Roland's
remaining debts
a. are discharged.
b. will be paid by the court.
c. must be paid by Roland.
d. are put on hold until Roland has sufficient means to pay them---
Correct Answer--- a. are discharged.
17. Patsy files a petition in bankruptcy. At the moment of filing
a. an automatic stay goes into effect.
b. Patsy's debts are discharged.
c. Patsy's petition is dismissed.
,d. Patsy's property is distributed to her creditors---Correct Answer---
a. an automatic stay goes into ettect.
18. Thirty-one days before filing a petition in bankruptcy, Gavin
transfers prop- erty and makes payments that favor one creditor over
another. These are
a. affirmation agreements.
b. preferences.
c. secured interests.
d. unsecured debts---Correct Answer--- b. preferences.
19. Daniel is a trustee for a federal bankruptcy court. Daniel's duties
include
a. collecting the debtor's available estate.
b. establishing priority for the payment of unsecured creditors.
c. operating a debtor's business to obtain maximum profit for
creditors.
d. submitting to an examination under oath by the creditors---Correct
Answer--- a. collecting the debtor's available estate.
20. Tully files a petition for bankruptcy. Tully must include with the
petition
a. proof of each creditor's claim.
b. a list of creditors and the amount of the debt owed to each.
c. all of his debit and credit cards to be disposed of by the court.
d an affidavit testifying to his having read the Bankruptcy Code---Correct
Answer--- b. a list of creditors and the amount of the debt owed to each.
, 21. Ace Widget Company created a product it called the Wizzo brand of
widget, and began selling it around the nation, but its attorney forgot to
register that trademark. The following year Barrett Widget Company
began to sell a product it called the Wizzo widget. Ace sues for
infringement of its trademark. Most likely:
a. Ace will lose because it did not register the mark.
b. Ace will lose because the two names are not identical.
c. Both b and c are reasons for Ace to lose.
d. Ace will win because it was the first user and the second mark was
similar enough to cause confusion---Correct Answer--- d. Ace will win
because it was the first user and the second mark was similar enough to
cause confusion.
22. Charlie Corrigan owned a restaurant, and wanted to choose a good
service mark for his restaurant. Which of these is the strongest mark?
a. Corrigan's, because it is his own proper name.
b. Charlie's Place, because it is a more generic name.
c. CCs Chow, because it is more distinctive.
d. There is no way to get a service mark for a restaurant---Correct
Answer--- c. CCs Chow, because it is more distinctive.
23. Ace Widget Company's "Wizzo" widgets become so popular that,
over the years, consumers have begun to call all widgets "wizzos." At
times, other companies have used the name "wizzo" in their advertising,
saying things like "our products work like wizzos," but Ace did not seek
legal relief against that advertising as it was too expensive to do so. Ace
is:
a. The owner of a very powerful mark.
