Business Accounting/Business Law solved MCQs Set 1 Sample Test,Sample questions

Question:
 A petient in a lunatic Asylum who is at intervals of sound mind :

1.May not contract.

2.May contract

3.May contact during those intervals when he is of sound mind.

4.May contract only after he becomes completely of sound mind .


Question:
 An agreement enforceable by law is

1.agreement

2.contract

3.offer

4.promise


Question:
 Every promise and every set of promises, forming the consideration for each other is an

1. agreement

2.offer

3.contract

4.acceptance


Question:
 In a contract of indemnity the right of the indemnifier is similar to that of the:

1.debtor

2.creditor

3.surety

4.agent


Question:
 In a contract of indemnity, minimum no of parties are

1.4

2.3

3.2

4.1


Question:
 In a standardized contract :

1. The individual has no choice but to accept and sign on

2.The individual must be protected in contract.

3. The agreement is without consideration.

4.None of the above.


Question:
 Protest for better security is done for publicity stunt.t

1.rue

2.false

3.attention

4.fun


Question:
 Public law includes _______law?

1.Middleman

2.Owner

3.None of these

4.Principal


Question:
 The voluntary transfer of possession from one person to another is called

1. Transfer

2.change of possession

3.Delivery

4.None of above


Question:
 What is the purpose behind the enactment of Sale of Goods Act, 1930?

1.To define the laws relating to the sale of goods

2. To consolidate and amend the laws relating to the sale of goods

3.To consolidate, amend and define the laws relating to the sale of goods

4. To define and amend the laws relating to the sale of goods


Question:
 Which is not the correct statement ?

1.If consent is the result of coercion, the agreement is

2.If a party is minor, the agreement is void .

3.If the object of an agreement is unlawful, the agreement is void.

4. If the consideration of an agreement is unlawful, the agreement


Question:
 Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:

1.Right of lien on goods for the price while the goods are in possession of seller.

2.Right of stopping the goods in transit, in case of insolvency of buyer C. Right of resale as limited by the Act

3. Right of resale as limited by the Act

4.Right of withholding delivery where the property in the goods has passed to the buyer


Question:
A Bill of exchange contains —

1.Conditional undertaking

2.Unconditional undertaking

3.Unconditional order

4. Conditional order


Question:
A minor can be an _____________?

1.Surety

2.Partner

3.Agent

4.None of these


Question:
A person coming forward to accept after it has been dishonoured is called:

1. A. acceptor for honour

2. acceptor for paying

3.payment for honour

4.holder


Question:
A proposal may be revoked by different ways as are provided in which one of the followings section of the Contract Act 1872.

1.6

2.7

3.8

4. None of above


Question:
A public company must have at least————- directors whereas a private company must have at least ——————-

1. 3;2

2.23

3.25

4.810


Question:
A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :

1.Fraud

2.Misrepresentation

3. No fraud

4. Undue Influence


Question:
According to Contract Act, Select the true about the “Contract”?A. Legal Term
B. Binding agreement
C. Always in written

1.B only

2.A and B only

3.A, B and C

4.None of these


Question:
An agreement becomes a contract if :

1. It is by free consent of the parties.

2. Parties are competent

3.It is enforceable by law.

4. None of the above


Question:
An agreement that is caused by fraud, misrepresentation & coercion is _____?

1.Voidable

2.Partially Void

3.Valid

4.All of these


Question:
…….meeting is the first meeting of the members of the public company after

1.board

2.annual general

3.departmental

4.statutory


Question:
Bearer cheques are also known as------ cheques.

1.Crossed

2.General

3.Special

4.Open


Question:
Before the enactment of Sale of Goods Act, the provisions regarding Sale of

1. Indian Contract Act, 1872

2.Indian Registration Act, 1908

3. Transfer of Property Act, 1882

4.Indian Partnership Act, 1932


Question:
Cheque can be of types and crossing of cheques can be of types.

1. three, two

2. two, two

3. two, three

4. three, three


Question:
Contingent goods belongs to _______ goods?

1.Existing

2.Future

3.Contingent

4.None of these


Question:
Document of title includes

1.business reports

2.railway receipt

3.cash memo

4.email


Question:
Future goods means goods to be manufactured or produced or acquired by the seller

1. In future prescribed time

2.after making of contract

3.before making of contract

4. none of the above


Question:
Holder in due course means any person-

1. A. Drawing the instrument

2.who for consideration became the possession of promissory note

3. to whom order the money is directed to paid

4. none of the Above


Question:
How many ways for revocation of proposal, according to the section 6 of the Contract Act, 1872

1.2

2.3

3.4

4.None of the above


Question:
In general, Partnership entails which one of the following liability?

1.Unlimited Liability

2. Limited Liability

3.No Liability at all

4.Both A and C


Question:
Is voidable contract?

1.Partly valid agreement

2. An illegal agreement

3.All of these

4.None of these


Question:
Law is either private law or _________ law.

1.Public

2.Private

3.Family

4.None of these


Question:
Memorandum of Association does notinclude.

1.SubscriptionClause.

2.Capital Clause.

3. Liability Clause

4.Assets Clause.


Question:
Public law includes _______law?

1.Administrative

2.Constitution

3.Criminal

4.All of these


Question:
Quorum for general meeting for private and public companies.

1.2 and 5.

2.3 and 6

3.5 and 7.

4.None of the above


Question:
Reciprocal represent the meaning of

1.One sided contracts

2.Trilateral contracts

3.Bilateral contracts

4.None of these


Question:
Sameed proposes by letter to sell a house to Shahzeb. When the Communication of the proposal in between Sameed and Shahzeb is complete?

1.When Sameed make such proposal

2.When Shahzeb accepts the proposal

3.Both (A) and (B)

4.None of above


Question:
Sameed proposes by letter to sell a house to Shahzeb. When the Communication of the proposal in between Sameed and Shahzeb is complete?

1. A. When Sameed make such proposal B.C. D.

2. When Shahzeb accepts the proposal

3.Both (A) and (B)

4.None of above


Question:
Section 2(1) of Sale of Goods Act defines ‘buyer’ as:

1.Person who buys goods and services

2.Person who agrees to buy goods

3.Person who buys or agrees to buy goods

4.Person who buys or agrees to buy goods and services


Question:
Select the best of partnership that entails more legal benefits?

1.Unlimited Liability Partnership

2.Limited Liability Partnership

3.Ordinary Partnership

4. None of these


Question:
Seller is a person who

1.sells

2.buys

3.debtor

4.transferee


Question:
The correct sequence in the formation of a contract is :

1. Offer, acceptance, agreement, consideration.

2.Agreement, consideration, offer,acceptance.

3.Offer , Consideration, acceptance, agreement.

4. Offer,acceptance, consideration, agreement.


Question:
The Income and Expenditure Account is a summary of cash transactions.Sol:

1.True

2.False

3.none

4.all


Question:
The person which is represented as an agent ______?

1.Middleman

2.Owner

3.None of these

4.Principal


Question:
The registered office clause of memorandum of association contains

1. The name of the state in which the registered office of the company is to

2.The name of the city/town only and not that of the state.

3.The name of registrar of companies

4. The complete postal address.


Question:
The sale of goods act is of:

1.1903

2.1923

3.1930

4.1932


Question:
The Section 5 of the Contract Act, deals with which one of the followings;

1.Communication of contract B. C. D. None of above

2.Revocation of proposals and acceptances

3.Acceptance of contracts

4.Revocation of proposals and acceptances


Question:
What are the limits of number of members in a Private Company?

1.Fifty

2.Seven

3.Twenty

4.Two hundred


Question:
What do you mean by symbolic possession?

1.Delivery of keys of lock of godown where the goods

2.Conditional promise to delivery.

3. Actual Delivery.

4.None of the above


Question:
What does Caveat emptor means?

1.beware agent

2.beware customer

3.beware trader

4. beware seller


Question:
When an instrument is lost, it is presumed that it was duly stamped

1. true

2.false

3.not inchoate

4.inchoate


Question:
Which documents contains the regulations relating to the internal management of a

1. Memorandum of Association

2.Articles of Association

3. Both (a) and (b)

4.None


Question:
Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of Goods

1.Stock

2.Shares

3.Growing crops

4.Actionable claims


Question:
Which of the following is not a negotiable instrument

1. Bill of exchange and cheque

2. Postal Order & Currency note

3.Promissory note and cheque

4. Promissory note & Bill of exchange


Question:
Which one of the following element is notnecessary for a contract ?

1.Competent parties

2.Reasonable terms and conditions

3.Free consent

4. Lawful concentration


Question:
Which one of the following is the agreement that is ceases to be enforceable by law becomes void when it ceases to be enforceable?

1.Valid contract

2.Void contract

3.Voidable contract

4.None of the above


Question:
Which one of the following is the agreement that is enforceable by law?

1.Contract

2. An agreement

3. Both (a) and (b)

4.None of above


Question:
Which one of the following is the agreement that is not enforceable by law is?

1.Valid agreement

2.Void agreement

3.Voidable agreement

4.None of above


Question:
Who can endorse the negotiable

1. Maker of the

2.older of the

3.Drawee

4.Both of A and B


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