Legal Aspects of Business MCQ Questions and Solutions with Explanations

Legal Aspects of Business MCQ Questions and Solutions with Explanations | Commerce

Legal Aspects of Business MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Legal Aspects of Business MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-8 section-4

A person supplying necessaries to an incompetent person (such as a minor or lunatic), is entitled to be reimbursed from the property of such person on the basis of

A) valid contract B) quasi-contract C) voidable contract D) contingent contract

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Answer & Solution

Answer: Option B

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Declaration of solvency of company by the Directors is necessary in case of:

A) Compulsory winding up B) Member's voluntary winding up C) Creditors voluntary winding up D) All the above

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Answer & Solution

Answer: Option D

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A cheque is always payable

A) on demand B) on request C) after specified time D) All of the above

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Answer & Solution

Answer: Option A

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From the date of registration, a public limited company must issue its prospectus within

A) 30 days B) 60 days C) 90 days D) 180 days

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Answer & Solution

Answer: Option C

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Doctrine of Indoor Management is referred to as:

A) Golden legacy B) Turquand rule C) Ejusdem generis rule D) None of these

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Answer & Solution

Answer: Option B

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Which of the following in Indian Contract Act does not constitute fraud?

A) Where a person stands in a fiduciary relation with the other and induces the other person to act on his directions B) The active concealment of a fact by one having knowledge or belief of the fact C) A promise made without any intention of performing it D) The suggestion as a fact, of that which is not true, by one who does not believe it to be true

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Answer & Solution

Answer: Option A

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The minimum number of partner/s to form an LLP is

A) 1 B) 2 C) 3 D) 4

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Answer & Solution

Answer: Option B

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Subject to a contract between the partners, the firm shall indemnify a partner is respect to payments made and liabilities incurred by him.

A) In the ordinary and proper conduct of the business B) In doing such act, in an emergency, for the purpose of protecting the firm form loss, as would be done by a person of ordinary prudence, in his won case, under similar circumstances C) Both A and B D) None of the above

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Answer & Solution

Answer: Option C

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What is a continuing guarantee?

A) A guarantee which continues even after the contract comes to an end B) A guarantee which shall be applicable to any other person who becomes a party to the contract C) A guarantee which extends to a series of transaction D) A guarantee which continues till the contract does not come to an end

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Answer & Solution

Answer: Option C

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Which of the following documents of a company can be regarded as a 'Window' through which an investor can look into the position of a company?

A) Memorandum of Association B) Articles of Association C) Prospectus D) All the above

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Answer & Solution

Answer: Option A

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