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Bill starts Castaway to market a new line of uniquely designed fishing gear. Delta Bank loans $50,000 to Bill for the project. The bank is most likely to recover the amount of the loan from Bill's personal assets​


A) ​if Bill provides a complete, accurate record of business transactions.
B) ​if the loan is not subject to an agreement that imposes personal liability.
C) ​if Bill's business is a sole proprietorship.
D) ​under no circumstances.

E) A) and C)
F) All of the above

Correct Answer

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As with other online businesses, the customers of Biz.com are heavily reliant on the firm's reputation. For an online business, dealing in good faith​


A) ​can be more important than in a brick-and-mortar location.
B) ​is irrelevant.
C) ​involves minimal compliance with the laws of a targeted market.
D) ​is not a significant part of an effective customer service program.

E) None of the above
F) A) and D)

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Beth starts Checklist to market a new app. Valley Credit Union loans $30,000 to Beth for the project. Later, the debt is most likely to be discharged in bankruptcy​


A) ​if Beth provides a complete, accurate record of business transactions.
B) ​if the loan is not subject to an agreement that imposes personal liability.
C) ​if Beth's business is a sole proprietorship.
D) ​under no circumstances.

E) A) and C)
F) A) and D)

Correct Answer

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Outlier Inc. hosts client accounts in servers located in foreign countries. The U.S. government issues a warrant to obtain e-mails related to a drug case from one of those accounts. Outlier refuses to comply. On the government's appeal, it is most likely that a court will​


A) ​order the owner of the account to "stand and deliver."
B) ​order Outlier to comply with the warrant.
C) ​order the government to abide by Outlier's refusal.
D) ​order the foreign countries to seize Outlier's servers.

E) All of the above
F) C) and D)

Correct Answer

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Like other online businesses, Amazing.com collects and retains its customers' account numbers and other personal information. Keeping this data private will most likely​


A) ​protect against liability for wrongful disclosure or misuse.
B) ​comply with federal and state laws that also cover offline businesses.
C) ​meet the standards of foreign countries' privacy laws.
D) ​all of the choices.

E) None of the above
F) C) and D)

Correct Answer

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Nina and Owen are general partners in Property Management, L.P., a limited partnership. Without Nina's knowledge or consent, Owen defrauds the firm's clients, resulting in the firm's liability for the losses. The limited partners file a suit against Nina to recover their investments. She is most likely liable​


A) ​if the clients are viewed as innocent third parties.
B) ​in a state that does not protect innocent partners from fraud suits.
C) ​under any circumstances.
D) ​under no circumstances.

E) B) and D)
F) All of the above

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B

Security Patrols Inc. requires its employees to respond to work-related text messages delivered via their company-issued smartphones while on duty in the workplace and while off duty elsewhere. Security's employees might successfully sue their employer for


A) ​ownership of the company's smartphones.
B) ​a decrease in the quality of life.
C) ​a violation of the right to disconnect.
D) ​unpaid overtime.

E) B) and C)
F) A) and B)

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D

Personnel Resources Company considers using software to analyze employee behavior with the goal of predicting wrongdoing. In this situation, the ethical focus is on​


A) ​the success of the software.
B) ​sanctions for something yet to be done.
C) ​questions of privacy.
D) ​whether data mining should occur only online.

E) A) and B)
F) All of the above

Correct Answer

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Trade Secrets Inc. hosts client accounts in servers located in foreign countries. The U.S. government issues a warrant to obtain e-mails related to a possible criminal case from one of those accounts. Before a court, as part of a refusal to comply with the order, Trade Secrets' best arguments include that the warrant​


A) ​threatens the privacy of U.S. citizens.
B) ​all of the choices.
C) ​exceeds the power of the government to conduct a reasonable search.
D) ​will cause the firm to lose business because its clients will no longer trust it to keep their data secret.

E) None of the above
F) All of the above

Correct Answer

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Flo and Gil are general partners in High Finance, a limited partnership. Without Flo's knowledge or consent, Gil defrauds potential investors into buying limited partnerships in the firm and steals the amounts of their investments. In a suit by those partners against Flo to recover for their losses, she is most likely liable​


A) ​if the investors are viewed as innocent third parties.
B) ​if the investors are construed as limited partners.
C) ​under any circumstances.
D) ​under no circumstances.

E) B) and C)
F) All of the above

Correct Answer

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Rick forms Study Groups Inc. to start a social media site online. He selects Takeaway as the domain name. Responsible for coordinating databases related to namespaces online​


A) ​are the Web hosts of online businesses.
B) ​is the U.S. Copyright Office.
C) ​is the U.S. Patent and Trademark Office.
D) ​is the Internet Corporation for Assigned Names and Numbers.

E) C) and D)
F) None of the above

Correct Answer

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Vera starts World Markets Inc. an online business to advertise and sell goods handcrafted in a variety of countries. The purpose of advertising law generally is to create marketplaces in which businesses can operate free of​


A) ​deceptive and unfair practices.
B) ​international restrictions on speech.
C) ​the rules of private Web sites (such as Facebook) .
D) ​competition.

E) A) and D)
F) A) and C)

Correct Answer

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Predictive analytics in the digital realm focuses on​


A) ​predicting certain behavior based on certain data.
B) ​analyzing certain data to predict digital developments.
C) ​analyzing certain predictions to monitor certain results.
D) ​predicting certain digital data based on reasoned analysis.

E) A) and C)
F) A) and D)

Correct Answer

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Regional Sales Company expects its sales staff to constantly check their e-mail for work-related messages outside normal working hours. Employees' constant online connectivity with their work raises an issue about​


A) ​the definition of work.
B) ​work-related stress.
C) ​the quality of workers' lives.
D) ​overburdened company servers.

E) B) and C)
F) A) and C)

Correct Answer

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Park Electronics Ltd., a consumer products company, was established, and is based, in Korea. Park bribes Filipino government officials to obtain favorable contracts. The U.S. Securities and Exchange Commission charges Park with violations of the Foreign Corrupt Practices Act. The firm​


A) ​may be liable if it knew such acts violated U.S. law.
B) ​may be liable if its stock is traded on American stock exchanges.
C) ​is not liable because it is not a U.S. firm.
D) ​is not liable because the alleged violations did not occur in the U.S.

E) C) and D)
F) A) and C)

Correct Answer

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B

Price-Lo Inc., a discount retailer, was established, and is based, in the United States. Charged by the United States with violating the Foreign Corrupt Practices Act by bribing foreign government officials for favorable contracts, Price-Lo​


A) ​may be subject to charges in other countries but not for the same acts.
B) ​may be subject to similar charges for the same acts in other countries.
C) ​will not be subject to similar charges in other countries because only the United States fines corporations for such acts.
D) ​will not be subject to similar charges in other countries because the firm is a U.S. company alleged to have violated U.S. law.

E) All of the above
F) C) and D)

Correct Answer

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