Strategic Management


Dexter Hemingway is the CEO and Todd Bradley is the CFO of Maxwell Inc. Unknowingly, both signed the financial report for the financial year 2006/07, Which was misleading. Can they be held liable for punishment?

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(a) Under the Sarbanes – Oxley Act, both of them must reimburse the company.

(b) Under the Sarbanes – Oxley Act, only the CEO will be liable for punishment.

(c) Under the Racketeer Influenced and Corrupt Organization Act(RICO) ,both of them are required to reimburse the company.

(d) Under the Racketeer Influenced and Corrupt Organization Act(RICO),only the CFO will be liable for punishment.


Question 42


A______ is a public offer to all the shareholders of a corporation to buy their shares at a stated price.


(a) Leveraged buy out

(b) Tender offer

(c) Target bid

(d) Merger


Question 43


If incorporators cannot show substantial compliance with statutes regarding incorporation but can show that they were unaware of any defect and acted in good faith, a court may trat the entity as a(n)___________.


(a) De jure corporation

(b)  Real corporation

(c) De facto corporation

(d)   Equitable corporation


Question 44

IF Tosca’s negligence causes Scarpia, who has an especially weak heart, to die of a heart attack, Scarpia,s surviving spouse_______.


(a) Will not be able to recover against TOSCA because Scarpia assumed the risk of harm when he allowed himself to interact with Tosca, knowing all the while that he had an especially weak heart.

(b) Will not be able to recover against Tosca if her negligence would not have caused a heart attack in normal person

(c) Will only be able to recover against Tosca if her behavior was reckless, not merely negligent

(d)   Will generally be able to recover against Tosca.


Question 45

Today, you might be buying from a regulated natural monopoly when you purchase:

(a) A house, a condominium, or a plot of land.

(b) Natural gas or electricity.

(c) A computer, a phone, or a camera.

(d) A car, a truck, or a bicycle.

Question 46


Under the Equal protection clause,______.

(a) The government must treat like cases alike.

(b) States are prohibited from arbitrarily discriminating against persons.

(c) States are prohibited from discriminating only on the basis of nationality.

(d) The government can uphold restrictions on property.

Question 47

A person who shares in the profits of the business but NOT in its_______ is not a partner.

(a) Management

(b) Losses

(c) control

(d) voting


Question 48

Under rational basis analysis,_________.

(a) A government action will be upheld as long as it has a reasonable relationship to the achievement of a legitimate purpose, even if those provisions are foolish.

(b)    Discrimination on the basis of a suspect category will received highest scrutiny

(c) Courts will deem a government action unconditional when the action impinges on a fundamental right.

(d) Discrimination on the basis of economic interest will receive highest scrutiny.


Question 49

______ is a process used mainly in the area of public international law whereby a third party, often a disinterested government, brings the parties together by establishing communication and providing a site where the parties can meet, often in secret.

(a) Public involvement.

(b) Good offices

(c) Local involvement

(d) Best transitions.

Question 50

________ law legal systems primarily rely on case law and precedents.

(a) Common

(b) Civil

(c) Statutory

(d) Codified

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