CMA Foundation Fundamentals of Business Laws and Business Communication Important Question | Dec 25

Table of Content

Fundamentals of Business Laws

1. Introduction
2. Indian Contracts Act, 1872
3. Sale of Goods Act, 1930
4. Negotiable Instruments Act, 1881

Business Communication

1. Business Communication

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Fundamentals of Business Laws 

Introduction

Question : 1

What are the sources of law?

1. Constitution of India 
2. Constitution of India, judicial precedents, customary laws, statutes and ordinance
3. Statutes enacted by the Parliament of India and State Legislatures
4. Religion

Solution:

Question : 2

Which Article in the Constitution of India, 1950 has provisions for introduction of a bill in the Parliament of India?

1. Article 119
2. Article 141
3. Article 107
4. Article 243

Solution:

Question : 3

Money Bill is introduced in which House of the Parliament?

1. Council of People – Lok Sabha
2. Council of States – Rajya Sabha
3. Both the Houses

4. None of the Houses

Solution:

Question : 4

A Bench of three judges in a High Court is called

1. Smallest Bench
2. Division Bench
3. Triangular Bench

4. Full Bench

Solution:

Question : 5

Legal customs and Conventional customs are a part of

1. Customs without Sanction
2. Customs having Sanction.
3. Judicial Customs

4. Voluntary Customs

Solution:

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Indian Contracts Act, 1872 

Question : 6

X promises to supply Y one tola of gold brought from the sun. This is

1. a valid contract 
2. an illegal contract 
3. a void agreement

4. a voidable agreement

Solution:

Question : 7

With regard to the contractual capacity of a person of unsound mind, which one of the following statements is most appropriate?

1. A person of unsound mind can never enter into a contract
2. A person of unsound mind can enter into a contract
3. A person who is usually of unsound mind can contract when he is, at the time of entering into a contract, of sound mind

4. A person who is occasionally of unsound mind can contract although at the time of making the contract, he is of unsound mind

Solution:

Question : 8

Misrepresentation means:

1. Unwarranted assertion 
2. Any breach of duty without an intent to deceive
3. Innocent mistake

4. All the above

Solution:

Question : 9

If a party stands in a fiduciary relation to the other :

1. He cannot dominate 
2. He can dominate the will of another
3. The trust should be maintained

4. None of these

Solution:

Question : 10

Communication of offer is complete when

1. It comes to the knowledge of the offeree
2. It is posted to the offeree
3. When the offeror writes the letter but does not post it

4. None of the above

Solution:

Question : 11

While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to speak about the material facts, amounts to consent obtained by:

1. Coercion
2. Misrepresentation
3. Mistake

4. Fraud

Solution:

Question : 12

The validity of contract is not affected by

1. Mistake of fact
2. Mistake of Indian Law
3. Misrepresentation

4. Fraud

Solution:

Question : 13

P invites Q to his wedding ceremony to which Q consented to attend. This is not a contract breach of which gives any remedy to either party because:

1. it is not witnessed by two parties.
2. there is no intention to create legal obligations on the part of the parties.
3. there is no consideration.

4. formal invitation is not sent

Solution:

Question : 14

Threat of commit suicide amounts to __________.

1. Undue influence.
2. Coercion
3. Fraud

4. Misrepresentation

Solution:

Question : 15

Rajeev entered into a contract with Lata to marry her on a fixed date. However, before the marriage date. Rajeev went mad. With reference to the Indian Contract Act which is the valid response?

1. Lata can’t marry till Rajeev dies
2. The executers of Rajeev can enforce the contract against Lata 
3. The contract becomes void

4. All the statements are correct 

Solution:

Question : 16

A contract which is valid initially however ceases to be enforceable subsequently:

1. becomes void when it ceases to be enforceable.
2. remains valid what may happen subsequently.
3. becomes illegal if it ceases to be enforceable.

4. None of these

Solution:

Question : 17

An erroneous opinion as to the value of the things which forms the subject-matter of the agreement, is not to be deemed: 

1. A mistake as to a matter of law
2. A mistake as to a matter of fact.
3. A mistake of circumstances

4. A mistake of nature of transactions 

Solution:

Question : 18

Where persons reciprocally promise, firstly, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promise is a ............... , but the second is a ................ :

1. Void agreements/ contract  
2. void contract/agreement 
3. Contract/void agreement  

4. Contract/voidable contract 

Solution:

Question : 19

The term “Quid Pro Quo” is applied in connection with : 

1. Capacity of the parties 
2. Consideration 
3. Free consent 
4. Legality of object

Solution:

Question : 20

The consideration must be :

1. Adequate
2. Must be adequate
3. Need not be adequate
4. Substantially adequate

Solution:

Question : 21

Silence cannot amount to offer by conduct.

1. True
2. Partly true
3. False
4. None of the above

Solution:

Question : 22

Drawing cash from ATM, sale by fall of hammer at an auction sale, etc. are examples of ____________________.

1. express contract
2. illegal contract
3. tacit contract
4. unlawful contract

Solution:

Question : 23

Which of the following statements is true?

1. An agreement with minor is void.
2. An agreement with minor is voidable.
3. The right of Estoppel is equally applicable to minor.
4. A minor cannot be an agent.

Solution:

Question : 24

Which of these is/are not an exception to the rule of Privity of Contract?

1. Family arrangement
2. Agency
3. Assignment
4. Agreement with minor

Solution:

Question : 25

Which of the following is not covered under the quasi contract?

1. Finder of lost goods
2. Quantum meruit
3. Payment of money due by other
4. Payment of Contractual debt

Solution:

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Sale of Goods Act, 1930 

Question : 26

A Share Certificate is a —

1. Document of Title to Goods 
2. Bill of Exchange
3. Document Showing Title to Goods
4. Instrument of Transfer

Solution:

Question : 27

A Bill of Lading is a —

1. Bill of Exchange 
2. Promissory Note
3. Cheque
4. Document of Title to Goods 

Solution:

Question : 28

There are……….modes of delivery 

1. Three
2. Two
3. Four
4. Five

Solution:

Question : 29

Under the sale of goods act 1930, which of the following is/are the implied warranty (S), (1) warranty of quite possession, (2) warranty freedom from encumbrances, (3) warranty of title (4) warranty as to wholesomeness

1. (1) & (2)
2. (1) & (3)
3. (2) & (4)
4. (3) & (4)

Solution:

Question : 30

The doctrine of Caveat emptor is not applicable

1. in case of sale under a patent name
2. in case of sale under a trade name
3. where the seller is guilty of fraud
4. where the buyer relies on the skill and judgment of the seller

Solution:

Question : 31

The definition of "Documents of title to goods" given in the Sale of Goods Act, is-

1. exhaustive
2. inclusive
3. exclusive
4. not clear

Solution:

Question : 32

C.I.F contract is

1. contract for the sale of insured goods
2. contract for sale of document
3. contract for sale of goods
4. contract for sale of specific goods

Solution:

Question : 33

The doctrine of Caveat Emptor does not apply, when

1. the goods are bought by sample.
2. the goods are bought by sample as well as description.
3. the goods are purchased under its brand name.
4. all of the above.

Solution:

Question : 34

Under which circumstances an unpaid seller resales the goods?

1. When the goods are of perishable nature
2. When the goods are costly
3. Both A and B
4. None of the above

Solution:

Question : 35

Which of these is not an essential requirement of a contract under Sale of Goods Act?

1. Goods
2. Two parties
3. Must be in writing
4. Mutual consent

Solution:

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Negotiable Instruments Act, 1881 

Question : 36

__________ is not a negotiable instrument as per customs and usage:

1. Delivery note 
2. Railway Receipt
3. Cheque
4. Government promissory note

Solution:

Question : 37

In a promissory note, the amount of money payable

1. must be certain 
2. may be certain or uncertain
3. is usually uncertain 
4. none of the above 

Solution:

Question : 38

Where a cheque is crossed generally the banker on whom it is drawn

1. shall not pay it otherwise than to a banker 
2. shall not pay it otherwise than to the holder
3. shall not pay it to a banker
4. none of the above

Solution:

Question : 39

How many parties are involved in a Bill of Exchange 

1. 2
2. 3
3. 4
4. 1

Solution:

Question : 40

When a cheque is payable across the counter of a bank it is called— 

1. OTC Cheque 
2. Open cheque 
3. Crossed cheque 
4. Restricted cheque

Solution:

Question : 41

____________ days grace period is allowed for payment of a cheque. 

1. 0
2. 3
3. 2
4. 7

Solution:

Question : 42

The term “a cheque in the electronic form” is defined in the Negotiable Instruments Act, 1881 - under 

1. Section 6(a)
2. Section 6(1)(a)
3. Explanation 1(a) of Section 6 
4.  Section 6A.

Solution:

Question : 43

A Corporation can be party to a Negotiable Instrument if---

1. authorized by its article of association
2. if special permission of Board of Directors taken 
3. if special resolution by Share holders is passed 
4. absolutely without any restrictions

Solution:

Question : 44

Bearer cheques are also known as ______ cheques

1. Crossed
2. General
3. Special
4. Open

Solution:

Question : 45

In India Negotiable Instruments Act came into force in the year ____.

1. 1861
2. 1881
3. 1871
4. 1981

Solution:

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Business Communication

Question : 46

If a message is short and to the point, the message is said to be ___________?

1. Correct
2. Concise
3. Coherent
4. Complete

Solution:

Question : 47

Information Overload is when ___________________.

1. Listener gets inadequate information
2. Listener gets too much information
3. Listener gets adequate information
4. Listener is inattentive

Solution:

Question : 48

Which factor is not in consideration while choosing means & mode of communication?

1. Cost factor
2. Nature & weather of locality
3. Resources 
4. Distance involved

Solution:

Question : 49

Excessive usage of technical jargons and double meaning words are what type of barrier?

1. Sematic Barriers
2. Psychological Barriers
3. Physical Barriers
4. None of the above

Solution:

Question : 50

A cloud computing is availability of computer resources?

1. Off demand
2. From demand
3. On demand
4. None of the above

Solution:

Question : 51

Study of body language of a person is called __________.

1. Kinesics
2. Chronemics
3. Paralanguage
4. None of the above

Solution:

Question : 52

Business communications help in establishing ________________ when marketing?

1. Professionalism
2. Rudeness
3. Negaitivity
4. Casualness

Solution:

Question : 53

Includes face to face interaction with customers for closing the sale?

1. Sales promotion
2. Advertising
3. Direct marketing
4. Personal Selling

Solution:

Question : 54

Communication among employees at the same level in the organizational structure is called -

1. Grapevine Communication
2. Diagonal Communication
3. Lateral Communication
4. None of the above

Solution:

Question : 55

A stage where in member have spotted the differences in their cultures and they look upon these differences as negatives is called __________.

1. Minimization
2. Integration
3. Denial
4. None of the above

Solution:

Question : 56

_________________ are imagery representations of a huge bulk of data. 

1. Tables
2. Graphs
3. Flowcharts
4. Letters

Solution:

Question : 57

Select which from the following is not a type of advertisement

1. Hike in price 
2. Inviting tenders
3. Stunts performed by actors
4. Recruitment of personnel

Solution:

Question : 58

A stage, wherein the members recognize and even appreciate the differences in the cultures. The members focus their attention on studying more about their own culture and avoid projecting their cultural values upon others

1. Minimization
2. Integration
3. Denial
4. None of the above

Solution:

Question : 59

‘With regards”______ be mentioned in a business letter. 

1. May 
2. May not
3. Must not

4. Must 

Solution:

Question : 60

Providing Frequently Asked Questions (FAQs) to customers result in which of the following benefits of internet communication?

1. Support care
2. Professional presentation
3. Personal touch
4. None of the above

Solution: