Business Law 11

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Objective Questions and Answers of MBA: Business Law 11

Subject: Objective Questions and Answers of MBA: Business Law 11

Part 11: Objective questions and answers of Business Law


Q1. Where the consent of a party is obtained by misrepresentation, the contract is;

a) Valid

b) Void

c) Voidable

d) Illegal


Q2. An agreement to do an illegal act (e.g.: sharing the earnings of smuggling business) is

a) Valid

b) Void

c) Voidable

d) Contingent


Q3. Can a person who is usually of unsound, but occasionally of sound mind, make a contract?

a) Yes, he can always make a contract

b) Yes, but only when he is sound mind

c) No, he cannot make contract

d) Can't be determined


Q4. Consideration may be

a) Past

b) Present

c) Future

d) All of the above


Q5. In case of illegal agreements, the collateral agreements are;

a) Void

b) Valid

c) Voidable

d) Any of these


Q6. Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for;

a) Damages

b) Injunction

c) Quantum merit

d) None of these


Q7. As a general rule, an agreement made without consideration is;

a) Void

b) Voidable

c) Valid

d) Unlawful


Q8. A contract made by mistake about some foreign law, is;

a) Void

b) Valid

c) Voidable

d) Illegal


Q9. A contingent contract dependent on the non-happening of a future uncertain event becomes void when such event

a) Happens

b) Does not become impossible

c) Does not happen

d) Both (a) and (b)


Q10. When offer is made to a definite person, it is known as

a) General offer

b) Cross offer

c) Counter offer

d) Special offer


Q11. Accounts of a company must be audited by an ______________

a) Chartered accountant

b) Auditor

c) Board of directors

d) All of these.


Q12. The shorter versions of a prospectus is also known as ______________

a) Deemed prospectus

b) Incomplete prospectus

c) Abridged prospectus

d) Red herring prospectus


Q13. The board of directors delegates the power to ______________

a) Issue debentures

b) Issue of shares

c) Invest the fund

d) Make loans


Q14. The other name of indoor management is called ______________

a) Golden rule

b) Constructive notice

c) Indoor rule

d) Tarquand rule


Q15. The right given to a particular class of shareholders is called the ______________

a) Special rights

b) General rights

c) Class right

d) None of the above


Q16. If the company’s act go beyond the provisions of the memorandum, its act will be_______

a) Constructive notice

b) Circular

c) Ultra virus

d) None of the above


Q17. Articles of association adopt the rules and regulations contained in ______________ of schedule i of the companies act

a) Table c

b) Table d

c) Table a

d) Table b


Q18. The managing directors hold the ______________ shares of the company.

a) Deemed

b) Equity

c) Qualification

d) Preference


Q19. When a director voluntarily remains absent from the three consecutive meetings of the board of directors, and

a) He became liable to be punished with @rs.500 for every default

b) He is disqualified for becoming a director of any company

c) His office falls vacant

d) None of the above


Q20. The chairman of the company has ______________ vote

a) 1

b) 3

c) 2

d) None of these.


Part 11: Objective questions and answers of Business Law


Q1. Answer c


Q2. Answer b


Q3. Answer b


Q4. Answer d


Q5. Answer b


Q6. Answer c


Q7. Answer a


Q8. Answer a


Q9. Answer d


Q10. Answer d


Q11. Answer b


Q12. Answer c


Q13. Answer d


Q14. Answer d


Q15. Answer d


Q16. Answer c


Q17. Answer c


Q18. Answer c


Q19. Answer c


Q20. Answer c

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