PLACE Business Education: Government Regulation in Business Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Sam, Mike, and Maurice all own drywall companies. They want to be able to win every bid. They decide that one of them will submit a low bid, while the other two submit higher prices. They take turns doing this, so each of them will get the job at some point in time. What is this called?

Question 2 2. A former employee sued his company for patent infringement. He claimed that they were trying to establish a monopoly and that they cost him his life's savings. The jury ruled in his favor and decided the company needed to pay him $20 million. The court chose to use a provision of the Clayton Act called treble damages, meaning that the company had to pay _____.

Question 3 3. Why did many new airlines appear after 1978?

Question 4 4. What is the daily publication of proposed and new regulations?

Question 5 5. Which agency would be in charge of recalling a toy that was found to harm children?

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Question 6 6. How long does the public have to comment on a proposed regulation?

Question 7 7. Federal agencies use _____ to evaluate and make determinations about the necessity of a proposed regulation, possible alternatives, and costs and benefits.

Question 8 8. The _____ creates the guidelines that all accounting professionals must follow in order to produce accurate and reliable financial statements.

Question 9 9. Cost-of-service regulation is calculated based on the price _____.

Question 10 10. What organization was set up to develop rules and guidelines for how companies should manage problems and issues as they arise within the organization?

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Question 11 11. Which of the following is NOT an example of economic regulation?

Question 12 12. Which federal agency has the power to protect employees' rights to organize and to form unions?

Question 13 13. The goal of which agency is to assure a safe and healthy work environment and working conditions for men and women?

Question 14 14. What occurs in the process of cross subsidization?

Question 15 15. Todd is the Operations Manager for Quality Granite. He cares for the company and the employees and wants to comply with OSHA safety regulations. What must Todd do to be in compliance?

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Question 16 16. What year was the Sarbanes-Oxley Act enacted?

Question 17 17. In what year was the Securities and Exchange Commission created?

Question 18 18. How does the Securities and Exchange Commission (SEC) differ from the Federal Trade Commission (FTC)?

Question 19 19. Which U.S. federal agency conducts ongoing research to prevent worker injury and illness?

Question 20 20. Why was the National Highway Traffic Safety Administration established?

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Question 21 21. Technoprinters developed a new printer that everyone wants. The printer can only use the ink cartridges that they manufacture. As a result, people must buy complementary products from them. Why is this illegal?

Question 22 22. How did the stock market crash of 1929 affect the creation of the Security and Exchange Commission?

Question 23 23. What does SEC stand for?

Question 24 24. Why was the Federal Trade Commission initially created in 1914?

Question 25 25. The government is suffering from a high debt. In order to decrease its responsibilities, it will allow private businesses to manage the highways, while requiring them to pay for road maintenance. Why is this an example of privatization?

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Question 26 26. A fruit company recently had to recall products that were possibly contaminated with Listeria, a bacteria that can cause sickness or death when consumed. Which agency would be responsible for this recall?

Question 27 27. Why was the Sarbanes-Oxley Act useful in combating fraudulent accounting?

Question 28 28. A scandal involving _____ is a prime example of why the Sarbanes-Oxley Act was needed.

Question 29 29. Identify which of the following is NOT within the jurisdiction of the Consumer Product Safety Commission:

Question 30 30. An investment company is desperate to receive more funds. They have tried to completely rebrand their company with a new advertising strategy which describes them as the Best long-term investment out there, despite the fact that their projections show that they will go out of business in 3 years. They have also falsified several of their financial documents to make it seem like they are making more than they actually are. Identify the example of fraudulent accounting from the above scenario:

PLACE Business Education: Government Regulation in Business Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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