Legal Aspects of Business MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11

71.
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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72.
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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73.
A cheque is always payable

A. on demand

B. on request

C. after specified time

D. All of the above

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74.
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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75.
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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76.
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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77.
The minimum number of partner/s to form an LLP is

A. 1

B. 2

C. 3

D. 4

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78.
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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79.
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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80.
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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Legal Aspects of Business MCQ Questions and Solutions with Explanations | Commerce

71. 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

Answer & Solution

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

Answer & Solution

73. A cheque is always payable

Answer & Solution

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

Answer & Solution

75. Doctrine of Indoor Management is referred to as:

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

79. What is a continuing guarantee?

Answer & Solution

80. 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?

Answer & Solution

Read More Section(Legal Aspects of Business)

71.
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

72.
Declaration of solvency of company by the Directors is necessary in case of:

73.
A cheque is always payable

74.
From the date of registration, a public limited company must issue its prospectus within

75.
Doctrine of Indoor Management is referred to as:

76.
Which of the following in Indian Contract Act does not constitute fraud?

77.
The minimum number of partner/s to form an LLP is

78.
Subject to a contract between the partners, the firm shall indemnify a partner is respect to payments made and liabilities incurred by him.

79.
What is a continuing guarantee?

80.
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?