Business Regulation MCQs
Business Regulation MCQs
The following Business Regulation MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Business Regulation. We encourage you to answer these 40 multiple-choice questions to assess your proficiency.
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1: Bait and Switch is a technique used by companies to lure the consumer into buying a product of a higher price by initially advertising a product at a low price but in actuality selling a different product at a lower price?
A. True
B. False
2: The illegal act of a general that owes a fiduciary duty to the company—usually an employee or director—learns nonpublic information and breaches its fiduciary duty by trading the securities of the company is known as Classical Insider Trading
A. True
B. False
3: _________ are attorneys, accountants, consultants, and other third parties who have a temporary fiduciary duty to the company because of their jobs.?
A. Constructive Insiders
B. Classical Insider Trading
C. Single Publication Theory
D. None of these
4: Consumer Financial Protection Bureau (CFPB) is an agency created to regulate consumer financial transactions, including credit cards______, and bank accounts.
A. Home mortgages
B. Home loans
C. Property mortgage
D. All of these
5: Debt ____assets that have not a fixed rate of return (e.g., bonds and mortgages).
A. A tool
B. Instruments
C. Assailant
D. Committer
6: _________Under this act, it is unlawful for any provider of consumer financial products or services to engage in any unfair deceptive or abusive act or practice.?
A. Dodd–Frank Act (DFA)
B. Debt Instruments
C. Constructive Insiders
D. None of these
7: Equity is an_______percentage of a venture.?
A. Ownership
B. Occupancy
C. Lease
D. Partner ship
8: Regulates communications between creditors and debtors and prohibits creditors from making false, deceptive, or misleading statements is known as ?
A. Fair Debt Collection Practices Act
B. Implied Warranties
C. Dodd–Frank Act (DFA)
D. None of these
9: When a merchant creates a warranty through actions or words that describe the product as having certain qualities is known as?
A. Implied Warranties
B. Contract law
C. Workmanlike quality
D. All of these
10: The ________ trading illegal act of buying or selling of securities for a profit based on information not available to the public.
A. Insider
B. Outsider
C. Both a and b
D. None of these
11: A jobs act law that created exemptions to existing securities regulations in order to ease the process of obtaining capital, especially for _____-sized companies.
A. Small- to-medium
B. Medium-to-large
C. Medium-to-small
D. Small-to-large
12: _______ in which buyers view two products as close substitutes.?
A. Workshop
B. Market
C. Showroom
D. None of these
13: Material”s Information that would not be important to an average investor?
A. True
B. False
14: Which theory Postulates that a person who uses insider information in trading securities has committed securities fraud against the source of the information?
A. Misappropriation Theory
B. A Proper Theory of Names
C. Cannon's Theory
D. The Constitutional Theory
15: ________ occurs when a company or its products dominate a particular market?
A. Monopoly
B. Hasbro
C. Gamer
D. Syndicate
16: A mortgage loan is not secured by real estate?
A. True
B. False
17: Per Se Standard Conduct that is inherently ______and harmful to the market is analyzed under this standard to determine whether an action is an unreasonable restraint.?
A. Controlling
B. Dominant
C. Anticompetitive
D. All of these
18: Price Discrimination Offering products at different prices to______.?
A. Contestant
B. Contender
C. Entrant
D. Competitors
19: A seller steeply increases the price of goods or services, usually after a demand or supply shock is known as ?
A. Price Gouging
B. Profiteering
C. Primary Market
D. Private Placements
20: Primary Market is original and ______of securities by a business to raise capital.
A. Reissuance
B. Republish
C. Reprint
D. Reissue
21: The limited groups of investors that issuers sell securities to (e.g., venture capitalists or institutional investors) is known as private placement ?
A. True
B. False
22: Public Market is ?
A. Markets open to the general investing community
B. Original and reissuance of securities by a business to raise capital.
C. Original and Reissuance
D. None of these
23: Regulation CF entrepreneurs and other small businesses can raise up to______ million from any investors using an online platform by selling restricted securities, and maximum investments vary depending on income.
A. 1$
B. 2$
C. 5$
D. 15$
24: Regulation D exempts small transactions from the registration requirements of the ______ Securities Act.?
A. 1933
B. 1946
C. 1986
D. 1935
25: ________Securities that cannot be resold on a public market?
A. Restricted
B. Rule 10b-5
C. Regulation
D. Rule 504
26: Prohibits fraud in the purchase or sale of securities; the SEC can pursue civil and criminal claims against violators is known as ?
A. Restricted
B. Rule 10b-5
C. Regulation
D. Rule 504
27: Rule 504 is transactions where no more than______ is being raised, there is no advertising, and only restricted securities are sold are exempt from registration requirements?
A. $1 million
B. $2 million
C. $5 million
D. $9 million
28: Which rule sets limitations on the type of investor that can buy the security but no limit on the dollar amount of the offering?
A. Rule 506
B. Rule 10b-5
C. Regulation
D. Rule 504
29: Conduct is illegal only if the conduct has an anticompetitive effect is known as ?
A. Rule of Reason
B. Rule 506
C. Rule 10b-5
D. Regulation
30: Secondary market is the purchase and sale of issued securities between buyers ?
A. True
B. False
31: _______allows anyone who bought or sold securities in reliance on a false or misleading filing to sue for money damages?
A. Section 18(A)
B. Section 5(A)
C. Section 19(A)
D. Section 15(A)
32: ________of The Federal Trade Commission (FTC) Act an advertisement is deceptive if it contains an important misrepresentation or omission that is likely to mislead a reasonable consumer?
A. Section 18(A)
B. Section 5(A)
C. Section 19(A)
D. Section 15(A)
33: Includes equities and debt instruments and other types of tradable financial assets is known as ?
A. Securities
B. Reliability
C. Uncertainty
D. Endangerment
34: Securities Exchange Act of ____(Exchange Act) Regulated the secondary market for securities.
A. 1935
B. 1985
C. 1963
D. 1934
35: Those who receive nonpublic information from insiders and then trade is known as ?
A. Tippees
B. Tipper
C. Unreasonable Restraints
D. None of these
36: Tipper is the ?
A. Insider
B. Outsider
C. Sider
D. None of these
37: Which ACT Requires lenders disclose all of the loan information clearly, including the amount financed, the total of payments, the finance charge, and the APR?
A. Truth in Lending Act (TLA)
B. Judiciary Act
C. Act of Union
D. None of these
38: _______is a set of uniform rules to govern commercial transactions?
A. Uniform Commercial Code (UCC)
B. Check
C. Draft
D. None of these
39: Unreasonable Restraint is Including conduct that restrains competition.?.
A. True
B. False
40: judgment with regard to whether the product is fit for that purpose is a ______?
A. Warranty of Fitness for a Particular Purpose
B. Warranty of Merchantability
C. Circular Economic Theory
D. All of these
41: Warranty of Merchantability that Promises the goods will be fit for the _____purposes for which they are used.?
A. Standard
B. Habitual
C. Stock
D. Ordinary
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Business Regulation MCQs
