Business Law 12

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Objective Questions and Answers of MBA: Business Law 12

Subject: Objective Questions and Answers of MBA: Business Law 12

Part 12: Objective questions and answers of Business Law


Q1. A agrees to pay rs.5 lakhs to b procures an employment for a in income tax department.

this agreement is

a) Void

b) Valid

c) Voidable

d) Contingent


Q2. La, b and c jointly promised to pay rs.60000 to d. A was compelled by d to pay the entire amount of rs.60000. Here

a) A can file a suit against d for recovery of the amount exceeding his share

b) A is entitled to recover rs.20000 each from b and c

c) On payment by a, the contract is discharged and b and c are also not liable to a.

d) D is not justified here and is liable to refund the entire amount to a


Q3. Which is the following is false? An acceptance:

a) Must be communicated

b) Must be absolute and unconditional

c) Must accepted by a person having authority to accept

d) May be presumed from silence of offered


Q4. Which is the following is false? Consideration:

a) Must move at the desire of the promisor

b) May move from any person

c) Must be illusory

d) Must be some value


Q5. Consent is not said to be free when it is caused by

a) Coercion

b) Undue influence

c) Fraud

d) All of these


Q6. A contract is discharged by novation which means the;

a) Cancellation of the existing contract

b) Change in one or more terms of the contract

c) Substitution of existing contract for a new one

d) None of these


Q7. Which of the following statement is true?

a) An agreement enforceable by law is a contract

b) An agreement is an accepted proposal

c) Both (a) and (b)

d) None of these


Q8. Which of the following persons do not fall under the category of persons of unsound mind?

a) Idiot

b) Lunatics

c) Drunken

d) Alien


Q9. An agreement, which prevents a person from carrying lawful business, is 

a) Valid

b) Void

c) Voidable

d) Contingent


Q10. A party entitled to rescind contract, losses the remedy where

a) He has ratified the contract

b) Third party has acquired right in good faith

c) Contract is not separable and recession is sought of a party only

d) All of these


Q11. ______________ is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose.

a) Incorporation

b) Private company

c) Company

d) Public company


Q12. A public company has been defined in sec ______________

a) 3(1)(iv)

b) 3(1)(i)

c) 3(1)(iii)

d) 3(1)(ii)


Q13. The articles of association and the memorandum of association are drafted by _____

a) Auditor

b) Director

c) Secretary

d) Register


Q14. Holding company is defined in section ______________ of the companies act.

a) 4(4)

b) 2(2)

c) 3(4)

d) 3(1)


Q15. The statement in lieu of prospectus is drafted in accordance with the particulars set in part i of the ______________ the act

a) Schedule i

b) Schedule iv

c) Schedule iii

d) Schedule ii


Q16. The auditor of Government Company is appointed by the ______________ of India

a) High court

b) Supreme court

c) State legislative

d) Controller and auditor general.


Q17. Every share holder of a company is also known as ______________

a) Member

b) Partner

c) Director

d) All of the above


Q18. A ______________ may be defined as a person having control over the affairs, conduct and management of a company.

a) Share holders

b) Director

c) Body corporate

d) Member


Q19. A meeting of board of directors shall be held at least ______________

a) One month

b) Once in every 3 months and at least 4 such meetings shall be held every year.

c) Two month

d) 4 months and at least 3 such meetings must be held in every year.


Q20. The first annual general meeting of the company must be held within ______________

a) 6 months of incorporation

b) 6 months from the date at which the company’s entitled to start its business

c) 18 months from the date at which the company is entitled to start its business

d) 18 months of incorporation.


Part 12: Objective questions and answers of Business Law


Q1. Answer a


Q2. Answer b


Q3. Answer d


Q4. Answer c


Q5. Answer d


Q6. Answer c


Q7. Answer c


Q8. Answer d


Q9. Answer b


Q10. Answer d


Q11. Answer c


Q12. Answer a


Q13. Answer c


Q14. Answer a


Q15. Answer d


Q16. Answer d


Q17. Answer a


Q18. Answer b


Q19. Answer b


Q20. Answer d

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