CGA CGA Business Law & Governance

Question 1

Which element is NOT required for a valid contract under US contract law?

Accepted Answer

Written documentation

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 2

Under the Uniform Commercial Code (UCC), which type of contract primarily governs the sale of goods?

Accepted Answer

Article 2 of the UCC

Answer

Service contracts

Answer

Real estate contracts

Answer

Employment agreements

Question 3

What is the primary liability characteristic of a limited liability company (LLC)?

Accepted Answer

Members' personal assets are generally protected from business liabilities

Answer

Members have unlimited personal liability for company debts

Answer

Only the managing member has limited liability

Answer

LLCs have the same liability structure as general partnerships

Question 4

A corporation's board of directors owes shareholders which primary fiduciary duty?

Accepted Answer

Duty of loyalty and duty of care

Answer

Duty of confidentiality

Answer

Duty of disclosure only

Answer

Duty to maximize short-term profits

Question 5

Which of the following transactions would require SEC registration under the Securities Act of 1933?

Accepted Answer

A private company's initial public offering of securities to the public

Answer

A company selling shares only to employees under a Regulation D exemption

Answer

A company repurchasing its own shares on the open market

Answer

A merger between two privately held companies

Question 6

Under the Sarbanes-Oxley Act (SOX), which section requires management to assess and report on internal controls over financial reporting?

Accepted Answer

Section 404

Answer

Section 201

Answer

Section 302

Answer

Section 409