Legal Aspects Of Business - Practice Test

[#816] 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

Correct Answer

(A) Where a person stands in a fiduciary relation with the other and induces the other person to act on his directions

[#817] The minimum number of partner/s to form an LLP is

(A) 1

(B) 2

(C) 3

(D) 4

Correct Answer

(B) 2

[#818] 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

Correct Answer

(C) Both A and B

[#819] 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

Correct Answer

(C) A guarantee which extends to a series of transaction

[#820] 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

Correct Answer

(A) Memorandum of Association

Legal Aspects Of Business - Study Mode

[#816] Which of the following in Indian Contract Act does not constitute fraud?

Correct Answer

[#817] The minimum number of partner/s to form an LLP is

Correct Answer

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

Correct Answer

[#819] What is a continuing guarantee?

Correct Answer

[#820] 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?

Correct Answer