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20. When faxing a business document, it is most important to: A. make an extra hard copy of the document before it is sent. B. increase the font size on the document to facilitate reading. C. request that the recipient confirm having received the document. D. include a cover shheet identifying the total number of pages in the fax.

21. A clothing retailer signs a contract with a manufacturer to purchase 6,000 units of a particular style of dress shirt at a price of $12 per shirt. The contract specifies only that the shirts be a blend of 60 percent cotton and 40 percent polyester and that they be delivered by June 14. Which of the following would be a valid reason for the retailer to refuse to accept the shipment of shirts or pay the manufacturer? A. Cotton prices have risen sharply and the manufacturer asks the retailer to pay $12.50 per shirt. B. Sales of dress shirts have dropped and the retailer's store inventories are higher than expected. C. The retailer believes that some of the colors of shirts sent by the manufacturer will not sell well. D. The retailer found another manufacturer willing to provide identical shirts at a lower price.

22. Federal antitrust legislation would most likely apply in which of the following cases? A. Senior members of a large brokerage firm are accused of insider trading of stocks. B. A large privately held company wishes to go public with an initial public offering (IPO) of stock. C. A large financial services company is accused of systematically defrauding consumers. D. The nation's largest and third-largest telecommunications companies wish to merge.

23. Consumers in several cities become seriously ill after eating blackberries sold at a particular supermarket chain. Health authorities trace the illness to an independent grower who sprayed contaminated irrigation water on the berries. The grower sold the berries to a wholesaler, who packed the berries and sold them to the supermarket chain. Which of the following elements of the supply chain for the blackberries is likely to be held liable if lawsuits are filed by the individuals who were sickened by the berries? A. the grower who grew and picked the berries B. the wholesaler who packaged the berries C. the supermarket chain that distributed the berries D. the managers of the stores that sold the berries to consumers

24. Which of the following statements most accurately compares how copyright law is applied to written or printed material with the way it is applied to digital material posted on the Internet? A. Digital material posted on the Internet is protected under a different, less restrictive, set of copyright laws. B. Copyright protections for digital material posted on the Internet are the same as those for written or printed material. C. Digital material posted on the Internet is protected only if it was posted originally on a site with a registered domain name. D. Copyright protections for digital material posted on the Internet are enforced for a shorter period of time than for written or printed material.

25. In response to widespread piracy of digital music and videos on the Internet, Congress passed the Digital Millennium Copyright Act. This act specifically prohibits the manufacture or distribution of software designed primarily for: A. circumventing encryption or other technology protecting digital works. B. sharing digital files on the Internet. C. downloading digital material from the Internet. D. streaming digital material online.

26. One provision of the Massachusetts Health Care Reform Act of 2006 states that businesses with more than ten employees that do not contribute to the health-care insurance of their employees: A. must provide basic health-care services directly to employees. B. would be assigned a lower priority when bidding on state contracts. C. must pay a higher rate on state tax of corporate profits. D. would be assessed an annual fee to help fund state health programs.

27. The sole proprietor of an established software design business decides to invest an additional $10,000 of her own money to buy new equipment and hire a new employee. The effect of this additional investment will be to: A. increase the business's assets. B. decrease owner's equity. C. increase profits. D. decrease liabilities.

28. On May 31, Hadrian Trading Services issued an invoice to Jonathan Smith for brokerage commissions in the amount of $2,000. A month later, Smith sent a partial payment in the amount of $1,000. When recording the payment, the accountant of Hadrian Trading Services should credit which of the following accounts for the amount of $1,000? A. revenue commissions B. cash C. accounts receivable D. provision for bad debts

29. A trial balance is useful for which of the following purposes? A. showing the financial situation of a business at a given date B. verifying that total debits equal total credits C. summarizing the changes in the owner's equity of a business D. ensuring that all account adjustments are entered correctly