Question 1

Based on Exhibit 1.7,which of the following is NOT a way in which U.S.law promotes consumer welfare?

Accepted Answer

A)  Collect taxes and spend money 
B)  Promote sale of safe products and services 
C)  Facilitate innovative products and services 
D)  Prevent deceptive practices 
A)  Collect taxes and spend money 
B)  Promote sale of safe products and services 
C)  Facilitate innovative products and services 
D)  Prevent deceptive practices

Question 2

Based on Exhibit 1.9,which of the following is NOT a component of legal astuteness as referenced in the text?

Accepted Answer

A)  A set of value-laden attitudes about the importance of law to the firm's success 
B)  A practice of leaving the resolution of legal issues to outside counsel 
C)  The ability to exercise informed judgment when managing the legal aspects of business 
D)  Context-specific knowledge of the law and the appropriate use of legal tools 
A)  A set of value-laden attitudes about the importance of law to the firm's success 
B)  A practice of leaving the resolution of legal issues to outside counsel 
C)  The ability to exercise informed judgment when managing the legal aspects of business 
D)  Context-specific knowledge of the law and the appropriate use of legal tools

Question 3

The __________ approach recognizes that "business decisions consist of continuous,interrelated economic and moral components."

Accepted Answer

A)  procedural 
B)  systems 
C)  conciliatory 
D)  mandated 
A)  procedural 
B)  systems 
C)  conciliatory 
D)  mandated

Question 4

Managers can make their own __________ law by entering into contracts and crafting certain governance structures.

Accepted Answer

A)  public 
B)  primary 
C)  cohesive 
D)  private 
A)  public 
B)  primary 
C)  cohesive 
D)  private

Question 5

The European Union's __________ rules are __________,so a former government official can begin exploiting his connections __________.

Accepted Answer

A)  antitrust, strong, one day he after leaving office 
B)  criminal, enforceable, one year after leaving office 
C)  ethical, weak, one year after leaving office 
D)  ethical, weak, the day he leaves office 
A)  antitrust, strong, one day he after leaving office 
B)  criminal, enforceable, one year after leaving office 
C)  ethical, weak, one year after leaving office 
D)  ethical, weak, the day he leaves office

Question 6

A legally astute manager would wait as long as possible to consult legal counsel once a problem arises in order to keep legal fees to a minimum.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 1-1Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to Fact Pattern 1-1.The government regulations pertaining to the use of certain chemicals involved which of the following types of law?

Accepted Answer

A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent 
A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent

Question 8

According to Exhibit 1.2,which of the following is NOT one of "Porter's Five Forces" that affect the competitive environment?

Accepted Answer

A)  Threat of Entry 
B)  Direct Competition 
C)  Logistics and Component Supply 
D)  Buyer Power 
A)  Threat of Entry 
B)  Direct Competition 
C)  Logistics and Component Supply 
D)  Buyer Power

Question 9

How does U.S.business law provide worker protection?

Accepted Answer

By regulating certain terms an

Question 10

Based on Exhibit 1.9,which of the following is listed in the text as a component of managing risk when assembling a team in business development?

Accepted Answer

A)  Analyzing any covenants not to compete 
B)  Purposefully refusing to address issues such as sexual harassment 
C)  Informing employees that e-mail communications are not discoverable 
D)  Ignoring whistleblower protection 
A)  Analyzing any covenants not to compete 
B)  Purposefully refusing to address issues such as sexual harassment 
C)  Informing employees that e-mail communications are not discoverable 
D)  Ignoring whistleblower protection

Question 11

Which of the following has the responsibility for deciding which allocation of resources and rewards in a business makes the most business sense?

Accepted Answer

A)  The general manager 
B)  The in-house lawyer 
C)  An independently retained lawyer 
D)  An independently retained law firm, not just one lawyer 
A)  The general manager 
B)  The in-house lawyer 
C)  An independently retained lawyer 
D)  An independently retained law firm, not just one lawyer

Question 12

Legally astute management teams practicing strategic compliance management:

Accepted Answer

A)  view the cost of complying with government regulation is viewed as an investment, not an expense. 
B)  view the cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened. 
C)  do only the minimum necessary to comply with any applicable law should be done. 
D)  view the cost of complying with government regulation as an expense which should be avoided until legal action is threatened, while only engaging in the minimum efforts necessary to comply with any applicable law. 
A)  view the cost of complying with government regulation is viewed as an investment, not an expense. 
B)  view the cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened. 
C)  do only the minimum necessary to comply with any applicable law should be done. 
D)  view the cost of complying with government regulation as an expense which should be avoided until legal action is threatened, while only engaging in the minimum efforts necessary to comply with any applicable law.

Question 13

Each activity in regard to "law and the value chain" referenced in the text has legal aspects.

Accepted Answer

A) True 
 B)False

Question 14

According to Exhibit 1.4,what are the four ways referenced in the text by which U.S.law promotes public welfare?

Accepted Answer

By promoting effective adminis

Question 15

__________ law is a type of law referencing formal rules embodied in constitutions and statutes enacted by legislatures.

Accepted Answer

A)  Public 
B)  Private 
C)  Substantive 
D)  Remedial 
A)  Public 
B)  Private 
C)  Substantive 
D)  Remedial

Question 16

Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on assets than firms that had not been convicted of wrongdoing.

Accepted Answer

A) True 
 B)False

Question 17

The European Union's center of operations is in Brussels,Belgium.

Accepted Answer

A) True 
 B)False

Question 18

As used in the text,the term "legal astuteness" refers to the ability of a manager to avoid situations making consultation with legal counsel necessary.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following was created by food advertisers in an attempt to halt government regulation aimed at stopping marketing preying on children's vulnerability?

Accepted Answer

A)  The Children's Advertising Review Unit 
B)  The Minor's Board Unit 
C)  The Minor Protection Review Unit 
D)  The Children's Enhancement Board 
A)  The Children's Advertising Review Unit 
B)  The Minor's Board Unit 
C)  The Minor Protection Review Unit 
D)  The Children's Enhancement Board

Question 20

Promoting economic growth is one of the primary public policy objectives of laws and regulations applicable to business.

Accepted Answer

A) True 
 B)False

Exam 1: Law, Value Creation, and Risk Management.

Based on Exhibit 1.7,which of the following is NOT a way in which U.S.law promotes consumer welfare?

Based on Exhibit 1.9,which of the following is NOT a component of legal astuteness as referenced in the text?

The __________ approach recognizes that "business decisions consist of continuous,interrelated economic and moral components."

Managers can make their own __________ law by entering into contracts and crafting certain governance structures.

The European Union's __________ rules are __________,so a former government official can begin exploiting his connections __________.

A legally astute manager would wait as long as possible to consult legal counsel once a problem arises in order to keep legal fees to a minimum.

According to Exhibit 1.2,which of the following is NOT one of "Porter's Five Forces" that affect the competitive environment?

How does U.S.business law provide worker protection?

Based on Exhibit 1.9,which of the following is listed in the text as a component of managing risk when assembling a team in business development?

Which of the following has the responsibility for deciding which allocation of resources and rewards in a business makes the most business sense?

Legally astute management teams practicing strategic compliance management:

Each activity in regard to "law and the value chain" referenced in the text has legal aspects.

According to Exhibit 1.4,what are the four ways referenced in the text by which U.S.law promotes public welfare?

__________ law is a type of law referencing formal rules embodied in constitutions and statutes enacted by legislatures.

Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on assets than firms that had not been convicted of wrongdoing.

The European Union's center of operations is in Brussels,Belgium.

As used in the text,the term "legal astuteness" refers to the ability of a manager to avoid situations making consultation with legal counsel necessary.

Which of the following was created by food advertisers in an attempt to halt government regulation aimed at stopping marketing preying on children's vulnerability?

Promoting economic growth is one of the primary public policy objectives of laws and regulations applicable to business.

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Agency.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Consumer Protection.

Real Property and Land Use.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

Filters

The European Union's rules are ,so a former government official can begin exploiting his connections __.