20 MCQ's

Question 1
In a destination contract the risk of loss passes from the seller to the buyer when the seller tenders the goods to the buyer at the destination point.
TRUE
FALSE

Question 2
Steve was discharged by impossibility when the doors were destroyed by lightning during transportation to Bill.
TRUE
FALSE

Question 3
The term "Free on Board (FOB)" can denote a shipment or destination contract depending on the stated location in the term.
TRUE
FALSE

Question 4
UCC Section 5-509 states that when the goods are neither shipped by a carrier nor held by a bailee, the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant.
TRUE
FALSE

Question 1
Bill is entitled to receive the full contract price of $6,000.00 from Steve.
TRUE
FALSE

Question 2
According to UCC Section 2-508, a seller who delivers non-conforming goods to a buyer has a reasonable opportunity to cure the non-conformity as long as he notifies the buyer and it is still within the stated contract time of delivery.
TRUE
FALSE

Question 3
Susan delivered defective windows to Bill on October 15, 2007.
TRUE
FALSE

Question 4
Susan is a lost volume seller since she had thousands of windows in stock and could supply anyone with as many windows as they need, at any time.
TRUE
FALSE

Question 1
Susan is entitled to recover the full contract price of $12,000.00 from Bill.
TRUE
FALSE

Question 2
Bill is entitled to receive $500.00 in compensatory damages from Tina
TRUE
FALSE

 Question 3
An injured party may also receive incidental damages for the costs of transportation, storage or commission
TRUE
FALSE

Question 4
According to UCC Section 2-206, unless otherwise stated in the offer, an acceptance may be made in any manner and by any medium reasonable under the circumstances.
TRUE
FALSE

1. Which of the following can be considered as an outcome of the 2008-2009 U.S. financial crisis?
I. More restrictive lending practices by U.S. financial institutions
II. A dysfunctional and damaged financial market
III. Limited consequences outside of the U.S.
I and II only
I and III only
II and III only
I, II, and III

2. If the yield curve is normal, what is the interest rate on a 20-year Treasury bond, compared to the interest rate on a 5-year Treasury bond?
The interest rate on the 20-year bond will be more than the interest rate on the 5-year bond.
The interest rate on the 5-year bond will be more than the interest rate on the 20-year bond.
The interest rates of the two bonds will be equal.
It is impossible to tell without knowing the relative risks of the bonds.

3. The over-the-counter market differs from the New York Stock Exchange in that:
the stocks, although publicly traded, are not listed on an exchange
only relatively small companies are traded because larger companies are required to be traded on exchanges
NASDAQ quotations apply only to smaller, less capitalized firms
all of the above

4. If the yield curve is normal, what is the interest rate on a 20-year Treasury bond, compared to the interest rate on a 5-year Treasury bond?
The interest rate on the 20-year bond will be more than the interest rate on the 5-year bond.
The interest rate on the 5-year bond will be more than the interest rate on the 20-year bond.
The interest rates of the two bonds will be equal.
It is impossible to tell without knowing the relative risks of the bonds.

 1. Which of the following are considered to be primary activities in a value chain analysis as outlined by Porter? (Points: 5)
Inbound logistics
Procurement
Human resource management
Firm's infrastructure
 
2. The concept of the value chain was developed by: (Points: 5)
Milton Friedman.
Peter Drucker.
Michael Porter.
Tom Peters.
 
3. All of the following constitute primary activities EXCEPT: (Points: 5)
procurement.
marketing and sales.
outbound logistics.
operations.
 
4. All of the following constitute support activities EXCEPT: (Points: 5)
technological development.
firm's infrastructure.
operations.
human resource management.