CNA CNA Business Law and Ethics 2

Question 1

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies and individuals from:

Accepted Answer

Bribing foreign government officials to obtain or retain business

Answer

The FCPA makes it illegal for U.S. persons and companies to bribe foreign officials for business advantages, and requires accurate books and records.

Question 2

Under the AICPA Code of Professional Conduct, which principle requires CPAs to be straightforward and honest in all professional relationships?

Accepted Answer

Integrity

Answer

The integrity principle requires CPAs to be honest and candid, avoiding subordination of judgment or misleading representations in all professional dealings.

Question 3

A business tort that occurs when a competitor makes false statements of fact about a rival's products is known as:

Accepted Answer

Trade libel (product disparagement)

Answer

Trade libel, or product disparagement, is a business tort involving false statements of fact about a competitor's goods or services that cause economic harm.

Question 4

Which legal doctrine holds employers responsible for torts committed by employees acting within the scope of their employment?

Accepted Answer

Vicarious liability

Answer

Vicarious liability (respondeat superior) makes employers legally responsible for wrongful acts committed by employees in the course of their work duties.

Question 5

In bankruptcy law, a Chapter 7 filing involves:

Accepted Answer

Liquidation of assets to pay creditors

Answer

Chapter 7 bankruptcy is a liquidation proceeding in which a trustee sells the debtor's non-exempt assets and distributes proceeds to creditors.

CNA - Certified National Accountant Practice Test

CNA - Certified National Accountant Practice Test

CNA CNA Business Law and Ethics 2