Legal Aspects Of Business - Practice Test

[#366] Which of the following descriptions are correct? 1. Two competent parties - Sections 11 and 12 2. Valid acceptance - Sections 4 to 7 3. Lawful consideration - Sections 2(d) and 25 4. Free and voluntary consent - Sections 15 and 19A

(A) 2 and 4 only

(B) 1 and 4 only

(C) 2, 3 and 4

(D) 1, 2, 3 and 4

Correct Answer

(D) 1, 2, 3 and 4

[#367] Where the provisions of the companies Act are violated the auditor must report the same to the:

(A) Board of Directors

(B) Managing Director

(C) Shareholders

(D) Central Government

Correct Answer

(A) Board of Directors

[#368] The indemnity holder is not entitled to:

(A) All damages which he may be compelled to pay in any suit in respect of any matter to which the promise applies

(B) All costs that he may be compelled to bear in defending any such suit

(C) All sums that he may have paid under the terms of any compromise of such suit

(D) Damages for liability incurred which is not absolute

Correct Answer

(D) Damages for liability incurred which is not absolute

[#369] What percentage of income from compensation on disaster is exempted from tax liability?

(A) 100%

(B) 75%

(C) 50%

(D) 25%

Correct Answer

(A) 100%

[#370] If a person who is incapable of entering into a contract is supplied with necessaries by another person, then the latter shall:

(A) Be reimbursed for such supplies by a relative of the incapable person and that relative must be capable of contracting

(B) Be reimbursed for such supplies from the property of such incapable person

(C) Not entitled to be reimbursed at all

(D) None of the above

(E) be reimbursed for such supplies by a relative of the incapable person and that relative must be capable of contracting

(F) be reimbursed for such supplies from the property of such incapable person

(G) not entitled to be reimbursed at all

(H) None of the above

Correct Answer

(B) Be reimbursed for such supplies from the property of such incapable person
(F) be reimbursed for such supplies from the property of such incapable person

Legal Aspects Of Business - Study Mode

[#366] Which of the following descriptions are correct? 1. Two competent parties - Sections 11 and 12 2. Valid acceptance - Sections 4 to 7 3. Lawful consideration - Sections 2(d) and 25 4. Free and voluntary consent - Sections 15 and 19A

Correct Answer

[#367] Where the provisions of the companies Act are violated the auditor must report the same to the:

Correct Answer

[#368] The indemnity holder is not entitled to:

Correct Answer

[#369] What percentage of income from compensation on disaster is exempted from tax liability?

Correct Answer

[#370] If a person who is incapable of entering into a contract is supplied with necessaries by another person, then the latter shall:

Correct Answer