Unit-wise MCQ
Academic Session 2020-21
Paper Code: BBA 201
Paper Title Business Laws
Semester III
Unit Coverage I
Instructions: All questions are compulsory. Each question carries 1 mark.
1. An agreement consists of reciprocal promises between at least
a) four parties. b) six parties.
c) three parties. d) two parties
2 Every promise and every set of promise forming the consideration for each other is a/an
a) contract b)agreement c)offer d)acceptance.
3. Contract is defined as an agreement enforceable by law, vide Section … of the Indian Contract Act.
a) Section 2(e) b)Section 2(f)
c) Section 2(h) d)Section 2(i)
4. Valid contracts
a) are made by free consent. b) are made by competent parties.
c) have lawful consideration and lawful object. d) all of the above
5. Which of the following is not a necessary feature for free consent:
a) When the consent is not caused by coercion
b) When the consent is not caused by undue influence
c) When the consent is not caused by mistake
d) When the consent is not caused by misunderstanding
6. …………….. is a one-sided contract in which only one party has to perform his promise or obligation.
(a) Void contract (b) Illegal agreement (c) Unilateral contract (d) Bilateral contract
7. The benefit move from one party to another party in a contract is called as
A)Transfer b)Income c) Consideration d) All of the above
8. The term consideration means—
(a) Something in return (b) Something of value
(c) Something of essence (d) Something in gratification
9. ) The delivery of goods by one person to another as security for the repayment of a debt, is
known as:
a) Bailment b) Hypothecation c) Pledge d) Mortgage
10. The delivery of goods by one person to another for some specific purpose is known as:
a) Bailment b) Hypothecation c) Pledge d) Mortgage
11. A contract to perform the promise or discharge the liability of a third person is case of
his default is called _______________
a) Guarantee b) Indemnity c) Agency d) consideration
12. An offer is
a) a suggestion by one person to another
b) expression of willingness by a person to another to do something in order to obtain
assent of the other person
c) communication of willingness of a person to another person
d) an intention of a person to do or to abstain from doing an act
13. An agreement to do impossible thing is---
(a) invalid agreement (b) void (c) voidable (d) Illegal
14. Definitions are provided in section_____ of The Contract Act
a) 2 b)3 c)4 d)None of these
15. ………………. is forbidden by law.
(a) Valid contract (b) Illegal agreement
(c) Voidable contract (d) Unenforceable contract
16. The position of the finder of lost goods is that of a :
a) Bailor b) Bailee
c) Surety d) Principal debtor
17. The person who gives the indemnity is known as
a) Indemnity-holder b) Surety
c) Indemnifier d) Principal debtor
18. In an Executed contract, the obligation of ---
(a) both the parties have been fulfilled (b) both the parties are outstanding
(c) obligation of one party is outstanding (d) none of these
19. General offer can be accepted---
(a) person to whom it is addressed (b) general public at large
(c) any body fulfilling the conditions attached to the offer
(d) only senior citizen having PAN number
20. A contract with or by a minor is a----
(a) valid contract (b) void contract
(c) voidable contract (d) voidable at the option of either party.
21 The Contract Act, 1872 consists_____ sections
a) 238 b)248 c)266 d)None of these
22 Which of the following feature is not essential for a contract:
a) It should be in writing only
b) free consent of parties competent to contract
c) lawful consideration and with a lawful object
d) It should not be declared void expressly
23 Which of these is/are essentials of a valid acceptance --------
(a) be absolute (b) be unqualified
(c) both be absolute & unqualified (d) be conditional.
24 ‘ Voidable’ contract means
(A) Parties are incompetent to contract (B) Free consent of the parties is missing
(C) Consideration is inadequate (D) The object of contract is expressly declared void by the act itself.
25 The delivery of goods by one person to another for some purpose, upon a contract and that they shall,
when the purpose is accomplished, be returned or otherwise disposed of by accounting to the directions of
the person delivering them, then it is called :
A) Contingent contract B) Bailment
C) Pledge D) Contract of indemnity
Unit-wise MCQ
Academic Session 2020-21
Paper Code: BBA 201
Paper Title Business Laws
Semester III
Unit Coverage II
Instructions: All questions are compulsory. Each question carries 1 mark.
1. Sale of goods Act was passed in the year ________.
a)1930 b)1935 c)1932 d)1872
2. A contract of sale of contingent goods is
a) Sale b) Agreement to sell c) Unlawful d) All of the above
3. Agreement to sell is
a) Executed contract b) Executory contract c) Sale d) Implied contract
4. A contract of sale of goods includes
a) Sale only b) Agreement to sell only c) Both a) and b) d) Barter
5. The term "goods" in the sale of goods means
(a) specific goods only (b) ascertained goods only (c) ownership (d) subject matter
6. The minimum number of persons required for a sale is
(a) two (b) five
(c) ten (d) twenty.
7. 'Price' under section 2(10) of the Sale of Goods Act, 1930, means
(a) the money consideration
(b) the consideration given in the form of goods
(c) partly money consideration and pa; consideration in goods
(d) either (a) or (b) or (c).
8. The word "Property" in the Sale of Goods Act, 1930 means
(a) seller or transferer (b) buyer or purchaser
(c) goods or subject matter (d) ownership or title.
9. Under section 2(6) of the Sale of Goods Act, 1930 'future goods' means
(a) goods which are not yet in existence (b) unascertained goods
(c) ascertained goods (d) specific goods
10. 'Goods' within the meaning of section 2(7) of the Sale of Goods Act, 1930 includes
(a) actionable claim(s) (b) money
(c) both (a) and (b) (d) neither (a) nor (b).
11. A is a stipulation essential to main purpose of the contract and the breach of which gives rise to a right
to treat the contract as repudiated:
a. Condition b. Warranty
c. Disclaimer d. Guarantee
12. A is a stipulation collateral to main purpose of the contract and the breach of which gives rise to a right
to claim for damages but not to a right to reject goods and treat the contract as repudiated:
a. Condition b. Warranty
c. Terms of contract d. Disclaimer
13. Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
a. Right of lien on goods for the price while the goods are in possession of seller.
b. Right of stopping the goods in transit, in case of insolvency of buyer
c. Right of resale as limited by the Act
d. Right of withholding delivery where the property in the goods has passed to the buyer
Medium
14. Section 2(7) of the Sale of Goods Act, 1930, the term 'goods' does not include
(a) stock and share (b) growing crops
(c) grass (d) neither (a) nor (b) nor (c).
15. Choose the most appropriate answer. Unless otherwise agreed, the goods remain at seller’s risk until:
[Link] goods have been delivered to the buyer
[Link] goods have been utilised by the buyer
[Link] price to the goods has been received by seller
d. The property therein has been transferred to the buyer
16 Which of the following most appropriately describes the term “sale” as per Sale of Goods Act, 1930:
a. A contract whereby seller transfers the property in goods
b. A contract whereby seller transfers or agrees to transfer the property in goods to the buyer for a
price
c. A contract where transfer of the property in goods is to take place at a future time
d. A contract where transfer of the property in goods is to take place subject to some condition thereafter to
be fulfilled
17 A contract of sale may be made:
a. A in writing or by word of mouth
b. partly in writing of partly by word of mouth
c. by the implied conduct of parties
d. All of the above
18 In a Contract for Sale of goods by sample and description, it is necessary that:
a. The bulk of goods shall correspond with the sample as well as description
b. The bulk of goods shall correspond with sample while it is not necessary that the bulk of goods shall
correspond with the description
c. The bulk of goods shall correspondent with the description and it is not necessary that the bulk of goods
correspond with the sample
d. Variation of the bulk of goods with the sample and description of goods is only to be treated as a breach
of warranty
19 If a price is not determined by the parties in a contract of sale, the buyer is bound to
pay________________
A. The price demanded by the seller.
B. A reasonable price.
C. The price which the buyer thinks is reasonable.
D. The price to be determined by a third independent person.
20 The sale of goods act, 1930 deals with_________.
A. movable goods only.
B. immovable goods only.
C. both movable and immovable goods
D. all goods except ornaments.
21. Transfer of actionable claim(s) is governed by
(a) The Transfer of Property Act, 1882
(b) The Sale of Goods Act, 1930
(c) The Indian Contract Act, 1872
(d) all the above.
22. When does the property in the goods pass to the buyer in case of contract for the sale of specific or
ascertained goods:
[Link] the contract for sale is made
b. When the parties to the contract intend it to be transferred
c. When the price is paid for the goods
d. When the delivery of goods has been made
23. The right of lien excised by an unpaid seller is to ___________.
A. retain possession. B. regain possession.
C. recovery price and other charges. D. Damages.
24. An unpaid seller can excises his rights of lien ___________.
A. where the goods have been sold on credit and terms of credit has not expired
B. where the buyer has not become insolvent.
C. for the price of the goods.
D. for the price of the goods and expenses.
25 Risk follows ownership ___________.
A. a. only when goods have been delivered .
B. b. only when price has been paid .
C. c. whether delivery has been made or not.
D. d. even when the price has not been paid.
Unit-wise MCQ
Academic Session 2020-21
Paper Code: BBA 201
Paper Title Business Laws
Semester III
Unit Coverage III
Instructions: All questions are compulsory. Each question carries 1 mark.
1. What is known as a charter of a Company?
A. Memorandum of Association B. Bye laws
C. Articles of Association D. Prospectus.
2. The minimum number of persons required to form a private company is ___________.
A. 7 B. 2
C. 3 D. 4
3. When is a company said to have been registered?
A. When it files the memorandum of association with the registrar of companies.
B. When it gets the certificate of incorporation
C. When it gets the certificate of commencement of business
D. When it actually starts its business
4. The most important document of a company is its__________.
A. prospectus . B. annual report.
C. memorandum of association . D. articles of association .
5. . The __________defines a companys relations with the outside world.
A. prospectus . B. memorandum of association.
C. articles of association . D. statement in lieu of prospectus .
6. The rules and regulations for the internal management of a company are contained in its___.
A. prospectus . B. annual report .
C. memorandum of association . D. articles of association .
7. The share capital of a company may be reduced by__________.
A. an ordinary resolution B. a special resolution .
C. a resolution of the board of directors . D. obtaining permission from the company law board
8. A foreign company means a company incorporated ________India and having a place of
business______ India .
A. outside, outside.
B. in, in .
C. in , outside .
D. outside, in .
9. A/an _______may become a director of a company.
A. partnership firm .
B. person of unsound mind .
C. individual .
D. body corporate .
10. Who/what appoints the first directors of a company ?
A. The shareholders in general meeting .
B. The Registrar of companies .
C. The articles of association .
D. The promoters .
11. The total managerial remuneration to the directors and the manager in respect of any financial year
must not exceed _________percent of the net profit in a public company.
A. one .
B. three.
C. eleven.
D. ten .
[Link] company means a company ______________.
A. which holds other company.
B. a government company.
C. a chartered company.
D. a subsidiary company.
13. A promoter is a person who ______________.
A. is a director .
B. is a relative of the company .
C. is a wellwisher of the company .
D. takes part in the companys incorporation .
14. The amount of minimum subscription may be learnt from the ______________.
A. prospectus.
B. memorandum of association.
C. articles of association .
D. records of general meetings .
15. When can a private company commence business ?
A. at any time .
B. after applying for registration.
C. after obtaining the certificate of incorporation.
D. after obtaining the certificate of commencement of business .
16. The minimum subscription is to be received within ______days of the offer.
A. 30.
B. 60.
C. 120.
D. 150.
17. The charter of a company refers to its ________________.
A. prospectus.
B. memorandum of association
C. articles of association
D. statement in lieu of a prospectus
18 Which of the following are characteristics of a company ?
A. It has unlimited liability.
B. It exists only in contemplation of law
C. It has not a perpetual succession
D. It comes to an end on the death of all its members.
19. A company is a juristic person with a perpetual succession _____________.
A. as such it dies.
B. its life depends on the life of its members.
C. it is created by a process of law and can be put to an end only by a process of law
D. none
20 On a share of Rs. 100 of a company, a shareholder has already paid Rs. [Link] Liability is now limited
to ___________.
A. Rs. 100.
B. Rs. 30.
C. Rs. 70.
D. rs.10
21. A share certificate is required to be signed by__________.
A. company secretary.
B. two directors
C. two directors and company secretary.
D. all directors and company secretary.
22. The duties of Company Secretary s regarding company meetings are restricted upto_____.
A. before company meeting
B. during company meeting
C. after company meeting.
D. ln all the above situations
23. one of the following is NOT an advantage of the incorporation of the company?
A. perpetual succession
B. limited liabilities of members.
C. capital contribution forming part of the joint stock f the company.
D. Freedom to do any business
24. The Reserve Bank of India is an example of a _____________.
A. registered company.
B. statutory company .
C. chartered company .
D. unlimited company .
25. The liability of a shareholder in a company limited by shares is ____________.
A. unlimited .
B. limited by guarantee.
C. limited to the unpaid value of shares subscribed by him.
D. none of the above.
Unit-wiseMCQ
Academic Session 2020-21
Paper Code: BBA 201
Paper Title Business Laws
Semester III
Unit Coverage IV
Instructions: All questions are compulsory. Each question carries 1 mark.
Q.1. Which of the following are Negotiable Instrument
(a) Promisory Note (b) Bill of exchange
(b) Cheque (d) All of the above
Q.2 The person who draws the bill is known as
(a) Drawee (b) Drawer
(b) Stranger (d) None of the above
Q.3 ............... is a person to whom the bill is endorsed.
(a) Endorsee (b) Payee
(c) Endorser (d) Holder
Q.4 Essential of a Bill of exchange
(a) It must be stamped (b) it must be in writing
(c) both (a) and (b) (d) none of the above
Q. 5How many parties are generally found in a Bill of Exchange
(a) 4 ; (b) 2 ; (c) 3 ; (d) 5
Q.6 Negotiable Instrument Act was enacted in—
(a) 1981 ; (b) 1881 ; (c) 1871 ; (d) 2001
Q.7 Which of these is not an essential feature of a bill of exchange
(a) Unconditional ; (b) Certainty of amount ; (c) In writing; (d) Amount to be paid in foreign currency
8. Cheque is a special kind of Bill of Exchange.
(a) True (b) False (c) Partly true (d) Partly false.
9. Cheque is always payable on demand.
(a) True (b) False (c) Partly true (d) Partly false
10. Validity of Cheque is 6 months.
(a) True (b) False (c) Partly true (d) Partly false
11. Bill of exchange and Promissory Note is required to be made on a stamp paper.
(a) True (b) False (c) Partly true (d) Partly false
12. In a promissory note, the amount of money payable
(a) Must be certain (b) May be certain or uncertain
(c) Is usually uncertain (d) none of the above.
13. The undertaking contained in a promissory note, to pay a certain sum of money is
(a) Conditional
(b) Unconditional
(c) May be conditional or unconditional depending upon the circumstances
(d) None of the above
Q.14 .............. is the person who makes or execute the note promising to pay the amount stated there in
(a) Maker (b) Payee (b) Holder (d) None of these
15. The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to
(a) The transfer of a bill of exchange, promissory note or cheque to any person,
so as to constitute the person the holder thereof
(b) The payment by a bank on a negotiable instrument after due verification of the instrument
(c) The bargaining between the parties to a negotiable instrument
(d) all of the above.
16. Drawee means a person who –
(a) Makes the order ; (b) Accepts it ; (c) Takes the payment on due date ; (d) Creditor
17. No one other than RBI and central Government can make a Promissory note payable to bearer.
(a) True (b) False (c) Partly true (d) Partly false
18. Under section 16 of the Negotiable Instrument Act, 'endorsement in blank' of an instrument means
(a) Where the endorser does not write anything on the instrument
(b) Where the endorser only signs without writing any name on the instrument
(c) Where the endorser writes the name of the person who is directed to pay
(d) None of the above.
19. The Negotiation of instrument to any person receiving it by paying consideration,
before maturity & in good faith is termed as_______.
(a) Holder (b) Holder In due course ( c) (a) & (b) (d) None of Them
20. The Negotiable Instruments Act, 1881 applies to
(a) The whole of India (b) The whole of India except the State of Jammu and Kashmir
(c) Those states as notified by the Union Government from time to time in the
Official Gazette
(d) The whole of India except the State of Jammu and Kashmir and the NorthEastern States.
Q.21 A negotiable instrument in which no time for payment is specified is payable :
(a) on demand (b) after a specified period (c) after acceptance (d) after sight
Q.22 When the holder endorses the bill to anyone else he becomes the ...................
(a) Endorsee (b) Payee (c) Endorser (d) Holder
Q.23 Which of the following is not a feature of a promissory note?
(a) It must be in writing
(b) It contains an unconditional promise to pay
(c) It is payable to the bearer
(d) It must be signed by the maker
24. Which of these are not required in a promissory note
(a) Acceptance ; (b) Unconditional promise to pay ; (c) Properly stamped;(d) Payment to be made legal
currency
25. Which of these is not true about a promissory note
(a) Unconditional promise ; (b) Crossing ; (c) Certainty of amount ;(d) Payee to a certain person
Assignment
Academic Session 2020-21
Paper Code: BBA 201
Paper Title Business Laws
Semester III
Unit Coverage I-IV
Unit-1
1. Define Contracts. Discuss the essentials of a valid contract. Who are the persons disqualified from
entering into a contract.
2. Define the term ‘Offer’. Discuss the essential elements and legal rules of a valid offer.
3. Define ‘acceptance’. Explain the legal rules regarding valid acceptance.
4. ‘An agreement without consideration is void’ Explain stating the exceptions.
Unit-2
1. What do you understand by contact of sale? What are essential requirements of sale contract? Explain in
the light of sale of goods act, 1930
2. What are the goods? What are kinds of goods?
3. What are the exceptions to the rule of “Caveat Emptor”?
4. Define and distinguish between conditions and warranty.
Unit-3
1. Define Company. What are different types of Companies?
2. Distinguish between a public and private limited company.
3. Explain and distinguish between Memorandum of Association and Article of Association.
4. What is the meaning of indoor management, explain with examples?
Unit-4
1. What is ‘Negotiable Instrument’ ? Explain the features and types of negotiable instrument.
2. Who is ‘holder in due course’ ? State its essential requirements.
3. Define the term ‘crossing of cheque’. What are the various types of crossing?
