Legal Aspects Of Business - Practice Test

[#526] A company Secretary is appointed by:

(A) The Managing Director

(B) The Board of Directors

(C) The members of the Company at the Annual General Meeting

(D) A special resolution passed at the General Meeting of the Company

Correct Answer

(B) The Board of Directors

[#527] A company is called an artificial person because:

(A) It does not have the shape of a natural person

(B) It cannot be sued in the court of law

(C) It is invisible and intangible

(D) It exists only in contemplation of law

Correct Answer

(D) It exists only in contemplation of law

[#528] Out of the following persons which of the following does not come under the definition of the "unpaid seller" as per Chapter V of Sale of Goods Act?

(A) A seller to whom the whole of the price has not been paid or tendered

(B) A seller to whom more than half of the price has been paid or tendered

(C) A seller who has received a bill of exchange as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise

(D) A seller who has received a negotiable instrument as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise

Correct Answer

(C) A seller who has received a bill of exchange as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise

[#529] Which of these contracts has three parties consisting of creditor, principal debtor, and surety?

(A) Contract of indemnity

(B) Contract of surety

(C) Contract of pledge

(D) Contract of guarantee

Correct Answer

(D) Contract of guarantee

[#530] 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

Correct Answer

(A) It should be in writing only

Legal Aspects Of Business - Study Mode

[#526] A company Secretary is appointed by:

Correct Answer

[#527] A company is called an artificial person because:

Correct Answer

[#528] Out of the following persons which of the following does not come under the definition of the "unpaid seller" as per Chapter V of Sale of Goods Act?

Correct Answer

[#529] Which of these contracts has three parties consisting of creditor, principal debtor, and surety?

Correct Answer

[#530] Which of the following feature is not essential for a contract?

Correct Answer