Week 1

1. What is the meaning of the term “Ignorantia Juris Non Excusat”? - Ignorance of
Law is not an excuse

2. The law that deals with rights and obligations of persons arising out of
commercial transactions is - Business law

3. Law made by the Parliament is called - Statute Law

4. Public law Includes - All of the given options (Administrative Law, Constitutional
Law & Criminal Law)

5. …………… is the interpretation of law by higher judicial courts that is used in later
trials - Judicial Precedent

6. Law can come from all of the following sources except - Police officers

7. When a crime is committed, what kind of law is this - Criminal Law

8. When a disagreement is settled between two individuals with regard to a

commercial transaction, type of law is this - Civil Law

9. Law is either private law or …………Law - Public Law

10. From the following, which amongst them belong to the category of Business law
in India?
1. Indian Contract Act 1872, 2. Indian Partnership Act, 1932
3. Companies act 2013, 4. Indian Penal Code 1860

- 1, 2, 3

Week 2
1. Agreement which is prohibited by law or which is against public policy is called
_______________. - Illegal contract

2. ‘A’ expresses to ‘B’ his willingness to sell his land for Rs. 25 lakhs? This
expression amounts to ___________________. - Offer

3. Which of the following statements is true? - Offer may be made in written or

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 oral form

4. ‘A’ makes an offer in the newspaper to sell his car to anyone who confirms the
acceptance by email. A has made a _____________. - General Offer

5. When a person to whom a proposal is made signifies his consent, it amounts to

____________. - Promise

6. A offers to sell a plot of land to B for 10 Lakhs. B sends a letter of acceptance

saying she will buy the land for 9 lakhs. A sells the land to someone else. Is A is
breach of his promise? - Yes, since the offer turned into a promise when B
accepted the offer

7. Rule which states that a person who is not a party to a contract cannot sue for
carrying out the promise made by the parties to the contract and a contract
confers right and obligations on contracting parties only. - Privity of Contract

8. An offer or acceptance can be communicated by way of ____________. - Act or

Omission

9. ‘A’ offers by a letter to sell his house to ‘B’ for a certain price. B accepts A’s offer
and sends a reply letter by post. Communication of acceptance, as far as ‘A’ is
concerned is complete when ________________. - B posts his letter of
acceptance

10. ‘A’ offers by a letter to sell his house to ‘B’ for a certain price. B accepts A’s offer
and sends a reply letter by post. Communication of acceptance, as far as ‘B’ is
concerned is complete when ________________. - A receives the letter of
acceptance

Week 3
1. Which among the following are grounds of incompetencies to enter into a
contract? - All of the above given options (Minority, Unsoundness &
Disqualification under law)

2. An agreement entered into by a minor is _____________. - Void ab initio

3. Which of the following statements is true? - All of the above given options
(Contracts entered into by a minor, which is beneficial to him is enforceable, A

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 Minor cannot be a member of a company & Minor cannot be a partner but can
be admitted to the benefits of the partnership)

4. Who among the following are not persons disqualified by law to enter into a
contract? - Companies

5. Consent is said to be free when it is not caused by

________________________. - All of the Above given options (Coercion, Undue
Influence & Fraud)

6. A, intending to deceive B, falsely represents that five hundred kilos of coffee are
made annually at A’s factory, and thereby induces B to buy the factory. The
contract becomes ____________. - Voidable

7. Which among the following statements is false? - A contract entered into based
on mistake of law is void

8. An Agreement is unlawful or illegal, if the consideration or object of which

___________. - All of the above given options (Defeats the provisions of law, Is
fraudulent & Is forbidden by law)

9. Which among the following is an agreement against public policy. - Trading with
enemy

10. Which among the following is not a void agreement? - Agreements with
insufficient consideration

Week 4
1. If the agreement is of a betting nature it is - wagering agreement and Void

2. Which among the following is true regarding Contingent Contracts? - All of the
above given options (A Contingent Contract is a contract to do something if
some event collateral to such contract, does or does nor happen, The event is
collateral to such contract & The contingent event is uncertain)

3. Which among the following maxims indicates – “no man can grow rich out of
another person’s costs”? - nemo debet locu platari ex liena justua

4. Contracts created by law are called as _______________. - Contingent Contracts

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 5. Which among the following are not Quasi Contracts? - Contracts in restraint of
trade or profession

6. The term ‘Tender” refers to - Offer of performance

7. Who among the following cannot perform a contract? - All of the above given
options can perform (Promiser himself/herself, Legal representative of the
Promiser & Agent of the Promiser)

8. An Order of the court directing the breaching party to do or refrain from doing
some specified act is the relief of _________________. - Injunction

9. Substitution of the original contract with a new contract is termed as

_____________. - Novation

10. Abandonment or relinquishment of a right under a contract is called

________________. - Waiver

Week 5
1. The person whose loss is made good in a contract of indemnity is called _____. -
Indemnity holder

2. A contract to perform the promise or discharge the liability of a third party in

the event of his default is called - Guarantee

3. How many parties are involved in a contract of guarantee? - Three

4. A guarantee that extends to a series of transactions is called - Continuing

guarantee

5. The Bailee’s right to retain the possession of the goods bailed till his/her dues
are cleared is called - Right of Lien

6. Against the Principal debtor, the Surety has - Right of Subrogation

7. Which among the following statements is true? - Pledge is a form of Bailment

8. Entrusting possession of movable goods by the owner into the care of another
person for some purpose briefly is called - Bailment

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 9. Bailment of goods as security for the repayment of a debt or performance of a
promise is called - Pledge

10. The legal relationship in which the agent deals with a third party on behalf of
the called - Agency

Week 6
1. The Act relating to the sale of goods is called: - The Sale of Goods Act, 1930

2. A condition is a stipulation that is ______ to the main purpose of the contract,

the breach of which gives rise to a right to treat the contract as repudiated. -
Essential

3. Goods may be: - All of the given options (Existing, Future & Contingent)

4. The conditions and warranties in a sale of goods may be: - Express or implied

5. A warranty is a stipulation ________to the main purpose of the contract, the

breach of which gives rise to a claim for damages but not to a right to reject the
goods and treat the contract as repudiated. - Collateral

6. The existing goods may be: - All of the given options (Unascertained,
Ascertained & Specific or generic)

7. In a contract of sale of Goods, the seller is under no duty to reveal unflattering

truths about the goods sold and the buyer has to beware while buying goods.
This doctrine is called as: - Caveat Emptor

8. Which of the following cannot be said to be included in the term “goods”

defined under section 2(7) of the Sale of Goods Act, 1930: - Actionable claims

9. The breach of warranty gives the buyer the right to: - Claim damages

10. Stipulation as to disclose the dangerous nature of goods is an implied

…………….. - Condition

Week 7

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 1. A partnership business shall consist of minimum __ partners and maximum __
partners. - 2 and No maximum limit

2. What is the partnership written agreement known as? - Partnership deed

3. Which types of partnership are entered into for a particular purpose? -

Particular partnership

4. Which types of partnership have no agreement in terms of the duration of

partnership? - Partnership-at-will

5. What type of agreement is used to form a partnership business? - Written or

oral agreement

6. In a partnership firm, what are some of the following features? - All the given
options (Two or more persons are carrying common business under an
agreement, They are sharing profits and losses in a fixed ratio & Business is
carried by all or any of them acting as an agent)

7. What is Particular Partnership? - A partnership formed for a single transaction

8. What is limited liability partnership? - Partnership in which it has elements of

partnerships and corporations/ companies

9. Who is a Dormant Partner? - A person who provides some of the capital for a
business but who does not take an active part in managing the business

10. A partner who makes no contribution of capital but lends his name and credit to
the firm is termed as a ______________. - Nominal Partner

Week 8
1. The Companies Act 1956 was repealed by - Companies Act 2013

2. Characteristics of a company is/are _______. - All of the given options (Common

seal, Limited liability & Perpetual Succession)

3. The minimum number of persons required for incorporation are _____ in case
of public company and ____ in case of private company. - 7 and 2

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 4. Registration of a company is ________. - Compulsory

5. The property of the company belongs to ________. - Company

6. A company has a separate legal personality from its members or shareholders

and this is called________. - Corporate veil

7. A company has an everlasting existence unless it’s is wound up by a process of

law and this is called________. - Perpetual succession

8. Disregarding the corporate entity’ status of a company by courts in certain

circumstances is called - Lifting of the corporate veil

9. The rationale behind the doctrine of lifting of the corporate veil are - Corporate
form should not be misused or used unjustl

10. What is the name of the signature of the company, which is considered the
official one? - A Common seal

Week 9
1. The formation of a company involves which of the following stages? - All of the
given options (Promotion, Incorporation & Capital Subscription Stage)

2. Minimum Number of Members in case of public company______ - 7

3. Minimum Number of Members in case of private company is - 2

4. Government Company means any company in which not less than 51% of the
paid-up share capital is held by _____. - Both Central Government and State
Government

5. Powers, rights, remuneration, qualification, and duties of directors are discussed

clearly in _____. - Articles of Association

6. What is the first stage of company formation? - The promotion

7. What is the name of the document which has the relationship of the company
with the outside world and explains the nature and scope of activities of the
company? - The memorandum of association

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 8. A prospectus is issued by - A public company

9. A document shall be called a prospectus if it satisfies _______________. - Both

It invites subscription to shares or debentures or invites deposits and the
aforesaid invitation is made to the public

10. A company having the liability of its members limited by the memorandum to
such amount as the members may respectively undertake to contribute to the
assets of the company in the event of its being wound up is called
___________________. - A Company limited by guarantee

Week 10
1. As per Section 2(84) Share means share in the share capital of a Company and
includes__________ - Preference Shares

2. _________________ is the total amount of the nominal value of shares which

have been actually taken up by or subscribed for by all the investors including
the public. - Subscribed Capital

3. Who are the shareholders and debenture holders of a company? - Owners and
Creditors

4. When the capital of the company is divided, what are the divisions called - The
share

5. Shareholders receive returns from the company and it is in the form of: -
Dividend

6. Preference shareholders have - Preferential right as to dividend and repayment

of capital at the time of liquidation of the company

7. Which of the following are the different types of debentures? - All of the given
options (Redeemable and Irredeemable, Secured and unsecured & Convertible
and non-convertible)

8. Nominal Share Capital/ Authorised capital is - The maximum amount of share

capital which a company is authorized to issue

9. Issue of shares at a price higher than its face value is called : - Issue at a

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 Premium

10. Procedure for the alteration of the share capital is: - All of the given options
(The registrar should be informed about it within 30 days, Ordinary resolution
should be passed for it & There should be provision in Memorandum of
Association and Articles of Association for the alteration of share capital)

Week 11
1. Individuals who perform the directing function irrespective of the label attached to
them are called ____ - Directors

2. Who among the following cannot be a member of a Company? - Partnership Firm

3. In the Annual General meeting of the company, ………… elect and appoint the directors
on a regular basis. - Share holders

4. A director appointed by the Board to fill the vacancy resulting by the death, resignation,
removal of a regular director before the expiry of his/her term - Casual director

5. Meeting of Shareholders held once in a year statutorily - Annual General Meeting

6. The formal decision of a meeting on a proposal placed before it is called - Resolution

7. Records of a proceeding of a meeting is called - Minutes

8. Meeting held by the holders of a particular class of share is referred to as - Class

meeting

9. Voluntary winding up is possible only when the company is …………… - Solvent

10. Winding up by an Order of the Tribunal is - Compulsory winding up

Week 12
1. Negotiable instruments are governed by the ______________________. - Negotiable
Instruments Act, 1881

2. The Negotiable Instruments Act in India is an Act to define and amend the law relating
to: - All of the given options (Promissory notes, Cheques & Bills of exchange)

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 3. In a Promissory Note, how many parties are involved: - Two

4. When a promissory note, bill of exchange or cheque is transferred to any person, so as

to constitute the person the holder thereof, the instrument is said to be: - Negotiated

5. A promissory note, bill of exchange or cheque drawn or made out of India and made
payable in, or drawn upon any person resident in India shall be deemed to be: - Foreign
instrument

6. The maker of a bill of exchange or cheque is called: - The drawer

7. Which of the following are true in relation to a negotiable instrument? - All of the
given options (Freely transferable – to the bearer through delivery; payable to order by
indorsement and delivery, Recovery – holder in due course can sue upon an NI in his
own name for the recovery – notice of transfer need not be given & Title of holder free
from all defects)

8. The nature of “promissory note is - It contains an unconditional promise by maker to

pay the payee.

9. What is NOT true about a cheque: - It may contain a conditional order

10. The person who is directed by the maker of a bill of exchange or cheque to pay is called
the: - Drawee

Week 13
1. Consumer Protection Act is significant to - All Goods and Services

2. How many rights does a consumer have under the Consumer Protection Act? - 6

3. Under the Consumer Protection Act, the rights of a consumer includes to Right to - All
of the given options (Safety, Choose & be Informed)

4. When the seller makes false promotion or fake gift or reward offers, it is known as -
Unfair trade practices

5. Which of the following are Consumer Disputes Redressal Agencies? - State Commission

6. Appeal against order of National Commission lies with? - Supreme Court

7. The RTI application is addressed to____. - Public Information Officer

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 8. The Consumer Protection Act is of the year ____. - 2019

9. Which of the following organizations are exempted from the RTI ACT - All of the given
options (Intelligence Bureau, Research and Analysis Wing & Directorate of
Enforcement)

10. What is the age criteria to file an RTI application? - No age bar

Week 14
1. ………. Is an association of manufacturers or suppliers with the purpose of maintaining
prices at a high level and restricting competitions - Cartel

2. ………… agreements are agreements among competitors to prevent, restrict, or distort

competition - Anti-competitive Agreements

3. ………… is body established for the purpose of regulating anti-competitive practices. -

Competition commission of India

4. The Arbitration and Conciliation Act 1996 is the law relating to…..... - Domestic and
international commercial arbitration

5. …………….. is the award granted by an arbitrator under the arbitration and conciliation
Act. - Arbitral award

6. The Insolvency and Bankruptcy code 2016 is the law relating to reorganisation and
insolvency of - All of the given options (Corporate persons, Partnership firms &
Individuals)

7. Which of the following come under the category of intellectual property laws? - All of
the given options (The patents Act 1970, The copyright Act 1957 & The Trademark Act
1999)

8. A ……… for an invention is granted by government to the inventor, giving the inventor
the right to stop others, for a limited period, from making, using or selling the invention
without their permission. - Patent

9. Relief under the Patent laws include - All of the given options (Injunction, Damages &
Forfeiture)

10. ………… is a type of intellectual property that protects original works of authorship as
soon as an author fixes the work in a tangible form of expression - Copyright

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Week 15
1. Business Ethics is a set of ……….. standards that are based on the principles of honesty
and duty to the general public. - Professional

2. The concept which emphasizes that the ethical choice of the individual, decides the
rightness or wrongness of his behaviour is called - Ethical subjectivism

3. ………… is based on two concepts of value and maximization of value -

Consequentialism

4. What is referred to as the act of disclosure by an employee about any illegal or unlawful
activities carried out by the employer? - Whistle blowing

5. …….. emphasizes those traits that give an individual a sense of satisfaction from the
ethical point of view. - Ethics of virtue

6. The ……. Model of ethics is based on the hypothesis that everybody has some
fundamental rights in this ethical universe. - Kantian model

7. People should treat others in the same manner that they themselves would like to be
treated. This is put forth by which of the following theories? - Golden Rule

8. What are the purposes of business ethics? - All of the given options (Social
responsibility of business, Optimum business performance & Inspires values, standards,
norms of professionalism)

9. Holding oneself or others responsible for own or their actions is referred to as -

Accountability

10. Everyone should have the same opportunities and treatment. This is..... - Fairness

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