Mock Test

Question 1

1. A Chartered Accountant should be aware of law because

A) He has to be an expert in law

B) He has to argue in High court and Supreme court

D) None of the above

From: [object Object]

Answer

C) He has to advice management and clients on legal matters at a basic or threshold level ✓

Question 2

2. Which of the following is not an exception to the rule - No consideration, No Contract

B) Love & Affection

C) Contract of Agency

D) Gift

From: [object Object]

Answer

A) Compensation for involuntary services ✓

Question 3

3. Vivaan lives on rent in a house owned by Swasti. Later he purchases the house from Swasti. The rent agreement is discharged due to:

A) Waiver of rights

B) Novation of contract

D) Remission of contract

From: [object Object]

Answer

C) Merger of rights ✓

Question 4

4. In contract of guarantee for whom guarantee given is called

A) Surety holder

C) Both (a) and (b)

D) None of above

From: [object Object]

Answer

B) Principal debtor ✓

Question 5

5. In case of hire purchase the hirer can pass title to a bona fide purchaser.

A) True

From: [object Object]

Answer

B) False ✓

Question 6

6. In contract of sale of goods, if the seller is not the owner of goods, then the title of the buyer shall-

A) Not be same as that of the seller

C) Be better than that of the seller

D) None of the above

From: [object Object]

Answer

B) Be same as that of the seller ✓

Question 7

7. Partnership is a relationship, which arises from:

A) Operation of law

C) Status

D) Almighty

From: [object Object]

Answer

B) An agreement ✓

Question 8

8. A firm is compulsorily dissolved on the:

A) Death of a partner

B) Adjudication of a partner as an insolvent

C) Expiry of a fixed period for which the firm was constituted

From: [object Object]

Answer

D) Business of the firm becoming illegal due to happening of an event. ✓

Mock Test

Instructions

Sample Questions: CA Foundation Business Laws