CBA Business Law & Compliance 1

Question 1

Which type of business entity provides its owners with limited liability protection while allowing profits to pass directly to owners' personal tax returns?

Accepted Answer

Limited Liability Company (LLC)

Answer

An LLC combines limited liability protection with pass-through taxation, avoiding the double taxation of a C Corporation.

Question 2

Under the Americans with Disabilities Act (ADA), which of the following is a requirement for employers with 15 or more employees?

Accepted Answer

Make reasonable accommodations for qualified individuals with disabilities

Answer

The ADA requires covered employers to provide reasonable accommodations to qualified individuals with disabilities unless it causes undue hardship.

Question 3

A contract is considered legally binding when it contains which of the following essential elements?

Accepted Answer

Offer, acceptance, and consideration

Answer

A valid contract requires an offer, acceptance of that offer, and consideration (something of value exchanged by both parties).

Question 4

What is the primary purpose of the Sarbanes-Oxley Act (SOX)?

Accepted Answer

Protect investors by improving corporate financial disclosures and preventing fraud

Answer

SOX was enacted to protect investors by enhancing the accuracy of corporate financial disclosures and imposing strict penalties for accounting fraud.

Question 5

Which federal agency is responsible for enforcing workplace safety and health regulations in the United States?

Accepted Answer

Occupational Safety and Health Administration (OSHA)

Answer

OSHA is the federal agency under the Department of Labor tasked with setting and enforcing standards to ensure safe and healthful working conditions.

(CBA) Certified Business Administrator Practice Test

(CBA) Certified Business Administrator Practice Test

CBA Business Law & Compliance 1