1. True or false: commercial speech cannot be regulated under any circumstances by the government.

Select one:

True

False

2.

All of the following are considerations when choosing an organizational form, except:

Select one:

a. Personal liability

b. The availability of your preferred company name

c. Ability to attract investors

d. Tax implications

3.

Which organizational form has two or more owners who share the risks and the profits?

Select one:

a. Sole proprietorship

b. Corporation

c. Partnership

d. Nonprofit corporation

4.

Sara is on the Board of Directors of a grocery store that is considering a property acquisition. Sara is the realtor for the seller of the property and will make 3% commission if the sale goes through. Sara does not disclose her involvement in the sale to anyone. What has Sara violated by not disclosing this fact?

Select one:

a. Duty of care

b. Business judgment rule

c. Duty of loyalty

d. Duty to maximize shareholder value

5.

In the context of the nonmarket environment, what are institutions?

Select one:

a. Arenas in which interests seek to influence the outcomes on issues

b. What the interests and institutional officeholders know or believe about the issues

c. The basic unit of analysis and the focus of nonmarket action

d. The individuals and groups with preferences about an issue

6.

True or false. Only federal laws apply to the sale of securities.

Select one:

True

False