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Exam Papers for Business Law and Ethics in BBA (With Answers)

PAPER # 1

**Instructions:**
- This exam consists of two sections: Business Law and Ethics
...

- Write your answers clearly and concisely
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- Be sure to follow the word limit for each question
...


**Answer 1:**

A contract is a legally binding agreement between two or more parties that creates
rights and obligations
...
**Offer and Acceptance:** One party must make an offer, and the other party must
accept it, resulting in mutual assent
...
**Intention to Create Legal Relations:** Both parties must intend for the contract to
have legal consequences
...
**Lawful Object:** The purpose of the contract must be lawful and not involve any
illegal activities
...
**Consideration:** There must be something of value exchanged between the parties
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**Capacity:** The parties entering the contract must have the legal capacity to do so
...
**Certainty and Possibility of Performance:** The terms of the contract must be clear,
and it must be possible to perform them
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**Free Consent:** Consent should not be obtained through coercion, undue
influence, fraud, or misrepresentation
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Provide examples of different types of
torts and their implications in the business context
...
In the business context, various types of torts can occur, including:

1
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For example, if a business fails to maintain its premises, and a customer slips
and gets injured, it can lead to a negligence claim
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**Defamation:** Defamation includes both slander (spoken defamatory statements)
and libel (written defamatory statements)
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3
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A business
engaging in fraudulent activities can be held liable
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**Product Liability:** When a product sold by a business is defective and causes
harm to consumers, the business may be held liable for product liability
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**Strict Liability:** Strict liability applies when a business is held responsible for
certain activities, such as the storage and transportation of hazardous materials,
regardless of fault
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**Section B: Business Ethics**

**Question 3:** (10 marks)

Define the term "Ethics" in the context of business
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**Answer 3:**

Ethics in business refers to the principles, values, and moral standards that guide
decision-making and behavior within a business organization
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**Reputation and Trust:** Ethical behavior helps build and maintain a positive
reputation, which, in turn, fosters trust among customers, employees, and stakeholders
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**Legal Compliance:** Ethical conduct ensures that a business complies with laws
and regulations, reducing the risk of legal troubles and penalties
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**Employee Morale and Productivity:** When employees perceive their workplace as
ethical, they tend to be more motivated, engaged, and productive
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**Customer Loyalty:** Ethical practices can lead to increased customer loyalty and
repeat business
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**Stakeholder Satisfaction:** Ethical behavior satisfies the needs and expectations of
various stakeholders, including investors and communities
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Explain the benefits of CSR for
businesses and society
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Examples of CSR activities include:

1
...


2
...


3
...


4
...


5
...


Benefits of CSR for businesses include improved reputation, increased customer
loyalty, attracting top talent, and long-term sustainability
...


5

PAPER # 2

Part 1: Business Law
Question 1:
Define the following terms:
 Contract
Agency
 Tort
 Negotiable instrument
 Bankruptcy
Answers:
 Contract: A legally binding agreement between two or more parties
...




Tort: A civil wrong that causes harm to another person or entity
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



Bankruptcy: A legal process in which a person or entity is unable to pay their
debts and their assets are liquidated to satisfy their creditors
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Answers:
The four elements of a valid contract are:
1
...

2
...

3
...

4
...

Question 3:
What is the difference between a breach of contract and a tort?
Answers:
A breach of contract is a failure to perform one's obligations under a contract
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The main difference between

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the two is that a breach of contract is a violation of a private agreement, while a tort is a
violation of a public duty
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Promissory notes: A written promise to pay a sum of money to a specific person
or bearer
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Bills of exchange: An order written by one person to another person to pay a sum
of money to a third person
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Checks: A written order to a bank to pay a sum of money to a specific person or
bearer
...
Chapter 13 bankruptcy is a reorganization bankruptcy, in which
the debtor develops a repayment plan to pay off their creditors over a period of time
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Descriptive ethics is the study
of what people actually believe is right and wrong
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7





Deontology: The ethical theory that holds that the right action is the one that is
consistent with a set of moral rules or duties
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Question 8:
Discuss the importance of corporate social responsibility (CSR)
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This can include things like environmental protection, social justice,
and employee well-being
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What are the four main types of business organizations?
Answer: The four main types of business organizations are:


Sole proprietorship



Partnership



Limited liability company (LLC)



Corporation

2
...
What are the main elements of a contract?
Answer: The main elements of a contract are:


Offer



Acceptance



Consideration



Mutual assent



Capacity



Legality

4
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What are the remedies for breach of contract?
Answer: The remedies for breach of contract vary depending on the type of contract and
the nature of the breach
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What is business ethics?

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Answer: Business ethics is the application of moral standards to business activities
...

2
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What are some of the ethical challenges that businesses face?
Answer: Some of the ethical challenges that businesses face include:


Conflicts of interest



Discrimination



Environmental damage



Bribery and corruption



Product safety

4
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What are the benefits of ethical business behavior?
Answer: The benefits of ethical business behavior include:

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

Improved reputation



Increased customer loyalty



Reduced risk of legal liability



Stronger employee morale

Case Study
Acme Corporation is a large manufacturing company
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The factory has been discharging pollutants
into the local river, which has caused health problems for the people who live
downstream
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Questions
1
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What are Acme Corporation's responsibilities to its stakeholders, including the
people who live downstream from its factory?
Answer: Acme Corporation has a responsibility to its stakeholders to minimize its
environmental impact and to respect their human rights
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3
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This may involve investing in new
technology, changing its production processes, or compensating the people who have
been harmed by the pollution
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Sole proprietorship, partnership, limited liability company (LLC), and corporation
2
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Offer, acceptance, consideration, mutual assent, capacity, and legality
4
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Damages, specific performance, rescission, and injunction

PAPER # 4
Question 1:
What are the three main types of business law?
Answer:
The three main types of business law are:
1
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2
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3
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Question 2:
What are the four elements of a valid contract?
Answer:
The four elements of a valid contract are:
1
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2
...

3
...

4
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Question 3:

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What are the five types of business organizations?
Answer:
The five types of business organizations are:
1
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2
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3
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4
...

5
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Business Ethics
Instructions: Answer all questions
...
It is concerned with the ethical implications of business decisions and the
conduct of business people
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Utilitarianism: The theory that the right action is the one that produces the
greatest good for the greatest number of people
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Deontology: The theory that the right action is the one that conforms to a set of
moral rules or duties
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Virtue ethics: The theory that the right action is the one that is consistent with the
virtues, such as honesty, courage, and compassion
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Social contract theory: The theory that morality is based on an implicit agreement
among members of society to abide by certain rules and norms in order to create
a just and orderly society
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Rights theory: The theory that morality is based on the fundamental rights of
individuals, such as the right to life, liberty, and property
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Contract law
2
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Business organization law
Question 2:
1
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Acceptance

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3
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Capacity
Question 3:
1
...
Partnership
3
...
Corporation
5
...
It is concerned with the ethical implications of business decisions and the
conduct of business people
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Utilitarianism
2
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Virtue ethics
4
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Rights theory
Question 3:

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

Bribery and corruption



Fraud and deception



Insider trading



Price fixing and other anti-competitive practices



Environmental pollution



Discrimination and harassment



Unsafe working conditions

17

PAPER # 5

**Section A: Business Law (50 Marks)**

**Question 1:** (10 marks)
Define the term "Contract" in the context of business law
...


**Answer 1:**
A contract is a legally binding agreement between two or more parties
...
Offer and Acceptance: One party must make an offer, and the other party must
accept it
...
Intention to Create Legal Relations: The parties must intend for the contract to be
legally enforceable
...
Legal Capacity: The parties must have the legal capacity to enter into a contract
...
Legality of Purpose: The contract's purpose must be legal
...
Certainty and Possibility of Performance: The terms of the contract must be clear,
and performance must be possible
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Consideration: Something of value must be exchanged between the parties
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Free Consent: The consent of the parties must be free from coercion, undue
influence, fraud, or misrepresentation
...


**Answer 2:**
A tort is a civil wrong that causes harm to an individual or their property, leading to legal
liability for the person who commits the tort
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Negligence: Negligence occurs when a person or business fails to exercise
reasonable care, resulting in harm to another party
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2
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If a business publishes false and damaging
information about a competitor, it may be sued for defamation
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**Answer 3:**
Intellectual property refers to creations of the mind, such as inventions, literary and
artistic works, and symbols, names, and images used in commerce
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Copyright: Protects original literary, artistic, and musical works
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Trademarks: Protects symbols, names, and slogans used to identify products or
services
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Patents: Protects inventions or discoveries for a specified period
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Trade Secrets: Protects confidential and proprietary business information
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Industrial Designs: Protects the visual design of industrial objects
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" Why is it essential for businesses to incorporate
ethical principles into their operations?

**Answer 4:**
Business ethics refers to the study of appropriate business policies and practices
regarding potentially controversial issues, such as corporate governance, insider
trading, bribery, discrimination, and social responsibility
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- Ethical behavior reduces the risk of legal issues and negative public perception
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**Question 5:** (10 marks)
Discuss a real-world case where a company faced ethical dilemmas and explain how
they handled the situation
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Volkswagen installed
software in their diesel cars that manipulated emissions tests, making the cars appear
more environmentally friendly than they were
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Other businesses can learn from this case to prioritize transparency,
honesty, and compliance with environmental regulations to avoid similar ethical
dilemmas
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**Answer 6:**
Corporate Social Responsibility (CSR) is the practice of businesses engaging in
activities that benefit society and the environment
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- Implementing environmentally friendly practices
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- Supporting local communities through volunteering and sponsorships
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PAPER # 6

**Section A: Multiple Choice Questions (20 marks)**

1
...
What is the primary purpose of contract law in business?
a) To create legally binding agreements
b) To regulate corporate social responsibility
c) To promote ethical business practices
d) To facilitate mergers and acquisitions

3
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Which of the following ethical principles focuses on treating all individuals fairly and
justly in business decision-making?
a) Utilitarianism
b) Virtue Ethics
c) Justice and Fairness
d) Deontological Ethics

5
...
Explain the concept of "piercing the corporate veil" and provide an example of when
this legal principle might be applied
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Define "whistleblowing" and discuss the ethical considerations that may arise when
an employee decides to blow the whistle on their employer
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What is the principle of "good faith and fair dealing" in contract law, and why is it
important in business contracts?

9
...


10
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**Section C: Essay Questions (50 marks)**

11
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Provide examples of how businesses can protect and respect
intellectual property
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Analyze the ethical dilemmas that arise when multinational corporations operate in
countries with different ethical standards and practices
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a) Common Law
2
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a) Tort
4
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c) Balancing economic, environmental, and social goals

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PAPER # 7

**Multiple Choice (20 Marks)**

1
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b) A system of moral principles that govern the conduct of individuals and
organizations
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d) The act of maximizing shareholder wealth
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What is the main purpose of contract law in business?

a) To ensure all business contracts are written and notarized
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c) To provide legal enforceability to agreements between parties
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**Answer: c**

3
...


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b) Offering a discount to a long-time customer
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d) Adhering to safety regulations in the workplace
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What does "fiduciary duty" mean in business law?

a) The duty of a business to maximize profits for shareholders, regardless of the
consequences
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c) The duty of a business to act in the best interests of its employees
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**Answer: d**

5
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b) A company's commitment to conduct business in an environmentally and socially
responsible way
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d) A company's requirement to minimize employee benefits
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Which of the following is NOT a form of intellectual property?

a) Trademarks

b) Copyrights

c) Stocks

d) Patents

**Answer: c**

7
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b) A legal business practice
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d) A type of fraud against consumers
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What is the purpose of antitrust laws?

a) To promote and protect the interests of large corporations
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c) To ensure that businesses pay their taxes
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**Answer: b**

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b) Pressure to achieve short-term financial goals
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d) A culture of indifference to unethical behavior
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What is the purpose of the Foreign Corrupt Practices Act (FCPA)?

a) To allow U
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companies to engage in corrupt practices abroad
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S
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c) To regulate the prices of foreign products in the U
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d) To promote foreign business practices
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Which of the following is an example of a tort in business law?

a) Breach of contract
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c) Assault
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**Answer: c**

12
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b) The duty of a business to care for its employees
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d) The duty of a business to maximize profits at all costs
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Which of the following is NOT an ethical principle commonly found in business
codes of ethics?

a) Honesty and transparency
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c) Unrestricted pursuit of profit
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**Answer: c**

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b) To protect consumers from deceptive marketing practices
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d) To promote international trade agreements
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A corporation's board of directors is primarily responsible for:

a) Maximizing shareholder wealth at any cost
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c) Overseeing the management of the corporation and acting in the best interests of
shareholders
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**Answer: c**

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16
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b) Discrimination
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d) Defamation
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What does the concept of "whistleblowing" refer to?

a) Reporting unethical or illegal activities within an organization to external authorities
or the public
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c) Exposing trade secrets of a competitor
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**Answer: a**

18
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b) Copyright laws
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d) Environmental regulations
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Which of the following is an example of a business organization that offers limited
liability to its owners?

a) Sole proprietorship
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c) Corporation
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**Answer: c**

20
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b) Maximizing profits at all costs
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d) Ignoring the consequences of your actions
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Describe the key elements of a valid contract and provide an example of a situation
where a contract might be deemed invalid
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Actual exam questions and answers may vary based on your course
material and curriculum
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Business Law
2
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BBA (Bachelor of Business Administration)
4
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Sample Papers
6
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Study Materials
8
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Past Exams
10
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Answer Keys
12
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Business Ethics
14
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Business Law and Ethics
16
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Academic Resources
18
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Business School
20
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BBA Program
22
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Business Studies
24
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Legal Studies
26
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Business Law Exam

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