Shared Flashcard Set

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MGT 340
Final Exam- Davis
20
Management
Undergraduate 3
05/03/2015

Additional Management Flashcards

 


 

Cards

Term
T/F: Nearly two-thirds of the states, in the United States, have enacted criminal codes based on the Model Penal Code (MPC) adopted by the American Law Institute (ALI) in 1962.
Definition
True

Nearly two-thirds of the states, in the United States, have enacted criminal codes based on the MPC adopted by the ALI in 1962. However, many states have retained certain portions of their common law within their criminal codes as well.
Term
T/F: In a civil case, the plaintiff needs to prove beyond a reasonable doubt that the defendant committed a civil wrong.
Definition
False

In a civil case, the plaintiff needs to prove only by a preponderance of the evidence that the defendant committed a civil wrong. In a criminal case, the government must prove its case beyond a reasonable doubt.
Term
T/F: If a corporate officer does not have any knowledge that a white-collar crime has taken place in her corporation, then she cannot be held liable
by a court.
Definition
False

Legislative bodies have begun to impose what amounts to strict liability statutes for corporate officers even when the officer in question did not have any actual knowledge that a crime had taken place. Corporations and their managers can be guilty of the crimes of their employees if the crime was committed for some corporate advantage or benefit of the company.
Term
T/F: During the criminal justice process, if a jury finds a defendant guilty, this results in an acquittal.
Definition
False

During the criminal justice process, if a jury finds a defendant guilty, this results in a conviction. If a jury finds a defendant not guilty, this results in an acquittal and the defendant cannot be prosecuted for the same charges again.
Term
T/F: The exclusionary rule applies only when violations of the Constitution occur and not when a government agency violates its own internal procedures.
Definition
True

Trial courts are required to exclude presentation of any evidence that is obtained as a result of a constitutional violation. This is known as the exclusionary rule. One important exception in the business environment is that the exclusionary rule applies only when violations of the Constitution occur and not when a government agency violates its own internal procedures.
Term
Which of the following statements accurately differentiates between criminal law and criminal procedure?

A. Criminal law sets limits on the government's authority in applying criminal procedure; criminal procedure is a body of law designed to prevent harm to society.

B. Criminal law defines the boundaries of behavior and sanctions for violating those boundaries; criminal procedure refers to the legal processes and safeguards afforded to individuals during criminal investigations.

C. Criminal law is designed to compensate parties, including businesses, for damages as a result of another's conduct; criminal procedure is the court process that leads to a verdict assigning the amount of compensation that a party has to pay.

D. Criminal law refers to the protections provided to individuals during criminal proceedings; criminal procedure refers to punishments such as a fine or imprisonment given to someone who violates a law.
Definition
B. Criminal law defines the boundaries of behavior and sanctions for violating those boundaries; criminal procedure refers to the legal processes and safeguards afforded to individuals during criminal investigations.
Term
The _____ requires the U.S. government to prove that a defendant's actions objectively satisfied the elements of a particular offense.

A. trial do novo
B. mens rea
C. actus reus
D. contra legem
Definition
C. actus reus
Term
The term kickback is best associated with _____.

A. arson
B. bribery
C. self defense
D. rehabilitation
Definition
B. bribery
Term
During a criminal investigation, once a suspect has been charged, the prosecutor decides whether to proceed with prosecuting the defendant on the original charge. If the prosecutor decides to proceed, the suspect or defendant is entitled to a(n) _____.

A. misdemeanor
B. preliminary citation
C. arrest warrant
D. preliminary adjudication
Definition
D. preliminary adjudication
Term
The Fourth Amendment to the U.S. Constitution protects individuals (and sometimes businesses) from unreasonable search and seizure by government agents and permits warrants to be issued only if _____ exists.

A. probable cause
B. reasonable doubt
C. preliminary adjudication
D. obstruction of justice
Definition
A. probable cause
Term
T/F: The Revised Model Business Corporation Act (RMBCA) provides that anyone purporting to act on behalf of a corporation, knowing incorporation has not yet occurred, is jointly and severally liable for all liabilities created by the acts.
Definition
True

Generally, a promoter is personally liable when he or she knows (and the other party has no reason to know) that the corporation is not in existence on the day of the signing. The RMBCA provides that anyone purporting to act on behalf of a corporation, knowing incorporation has not yet occurred, is jointly and severally liable for all liabilities created by the acts.
Term
T/F: An enterprise can be an S corporation if any of its shareholders is a corporation, a partnership, or a discretionary trust.
Definition
False

An enterprise cannot be an S corporation if any of its shareholders is a corporation, a partnership, or a discretionary trust. The primary reason that some corporations do not choose an S election is that the tax code allows only certain types of corporations to have that status and, thus, the favorable tax treatment.
Term
T/F: Ralph, a director at ZincX Inc., has been sued by the company's shareholders for making a poor financial decision that cost the company millions of dollars. Ralph can claim protection under the business judgment rule only if he had a vested financial self-interest in the financial decision under dispute.
Definition
False

In order to claim protection under the business judgment rule, Ralph must have had no financial self-interest in the disputed transaction or decision. Being a shareholder of a merging company or a supplier to a corporation may be dangerous territory for a director because a transaction with the merger partner or supplier may have some degree of self-dealing contamination that will deprive the director of any business judgment rule protection.
Term
T/F: A shareholder's derivative action suit is also called a shareholder's direct action suit.
Definition
False

A shareholder's derivative action suit is not called a shareholder's direct action suit. In a derivative suit, an individual shareholder (or a group of shareholders) brings a lawsuit against an insider in the name of the corporation itself. In a direct action suit, the shareholder brings suit on
his or her own behalf.
Term
T/F: Misrepresentations to creditors regarding important facts about the financial condition of the company are examples of fraud that could lead to a piercing of the corporate veil.
Definition
True

Misrepresentations to creditors regarding important facts about the financial condition of the company or lying to investors about potential liabilities of the corporation are examples of fraud that could lead to a piercing of the veil.
Term
Which of the following is true of privately held corporations?

A. They often use the unanimous consent resolution to issue stock.

B. They sell ownership interests via brokers to financial institutions.

C. They are very rigid in terms of internal operating procedures.

D. They have to comply with rigorous corporate formalities.
Definition
A. They often use the unanimous consent resolution to issue stock.
Term
When a corporation is converted from privately held to publicly held, it is likely to have done so by:

A. borrowing money from commercial lenders.
B. engaging in an initial public offering.
C. selling its equity to private investors.
D. restricting the number of owners it may have.
Definition
B. engaging in an initial public offering.
Term
Which of the following is true of taxation in a C corporation?

A. A C corporation is not a taxable entity.

B. In a C corporation, shareholders pay tax on both the corporation's earnings as well as their individual dividends.

C. A C corporation is not considered separate from its owners for income tax purposes.

D. In a C corporation, both the entity and individuals pay tax through a system of double taxation.
Definition
D. In a C corporation, both the entity and individuals pay tax through a system of double taxation.
Term
Which of the following sentences best describes the term quorum requirement during the election of a corporation's board of directors?

A. The maximum number of shares a director of a public corporation can own

B. The minimum age requirement of a corporation's board of directors

C. The minimum number of shareholders who must be present to hold a vote

D. The maximum number of shareholders required to consent to S corporation status
Definition
C. The minimum number of shareholders who must be present to hold a vote
Term
Matthew Granger is a member of the board of directors at Produxicore Inc. Over a period of one year, Matthew failed to attend most of the board meetings claiming that he was unaware of their occurrence. During the meetings that he did attend, he was not up-to-date with the company's developments. He did not read the reports he was presented and was unfamiliar with the company's financial records. In this scenario, Matthew Granger breached his duty of care primarily through _____.

A. self-dealing
B. negligence
C. the rubber stamp
D. rational belief
Definition
B. negligence
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