80+ Business Regulatory Framework Solved MCQs

1.

The Indian Contract Act came into force on:

A. 15th September, 1872
B. 1st September, 1872
C. 1st October, 1872
D. 15th October, 1872.
Answer» B. 1st September, 1872
2.

The Indian Contract Act, applies to the:

A. Whole of India excluding Jammu & Kashmir
B. Whole of India including Jammu & Kashmir
C. States notified by the Central Government from time to time
D. None of the above.
Answer» B. Whole of India including Jammu & Kashmir
3.

An agreement consists of reciprocal promises between at least

A. four parties.
B. six parties.
C. three parties.
D. two parties.
Answer» D. two parties.
4.

Every promise and every set of promise forming the consideration for each other is a/an

A. contract.
B. agreement.
C. offer.
D. acceptance.
Answer» C. offer.
5.

Contract is defined as an agreement enforceable by law, vide Section … of the Indian Contract Act.

A. Section 2(e)
B. Section 2(f)
C. Section 2(h)
D. Section 2(i)
Answer» C. Section 2(h)
6.

Valid contracts

A. are made by free consent.
B. are made by competent parties.
C. have lawful consideration and lawful object.
D. all of the above.
Answer» D. all of the above.
7.

A contract creates

A. rights and obligations of the parties to it.
B. obligations of the parties to it.
C. mutual understanding between the parties to it.
D. mutual lawful rights and obligations of the parties to it.
Answer» B. obligations of the parties to it.
8.

In agreements of a purely domestic nature, the intention of the parties to create legal relationship is

A. to be proved to the satisfaction of the court.
B. presumed to exist.
C. required to the extent of consideration.
D. not relevant at all.
Answer» A. to be proved to the satisfaction of the court.
9.

………………. is forbidden by law.

A. Valid contract
B. Illegal agreement
C. Voidable contract
D. Unenforceable contract
Answer» B. Illegal agreement
10.

A makes a contract with B to beat his business competitor. This is an example of

A. valid contract.
B. illegal agreement.
C. voidable contract.
D. unenforceable contract.
Answer» B. illegal agreement.
11.

Which of the following legal statement is incorrect?

A. An agreement enforceable by law is a contract [Section 2]
B. All agreements are contracts [Section 10]
C. A proposal when accepted becomes a promise [Section 2]
D. Every promise and every set of promise forming the consideration for each other is an agreement [Section 2(e)]
Answer» B. All agreements are contracts [Section 10]
12.

……………… is made by words written.

A. Express contract
B. Implied contract
C. Tacit contract
D. Unlawful contract
Answer» A. Express contract
13.

Agreement the meaning of which is uncertain is

A. Void
B. Valid
C. Voidable
D. Illegal
Answer» A. Void
14.

Which of the following relationship raise presumption of positive influence?

A. Parent and Child
B. Religious/ Spiritual Guru and disciple
C. Guardian and Ward
D. All of the above
Answer» D. All of the above
15.

Which of the following is false with respect to minor entering a contract?

A. An agreement with or by a minor is void ab initio
B. A minor can be a beneficiary of a contract
C. The contracts involving a minor as a beneficiary may be enforced at the option of the third party
D. A minor cannot ratify a contract on attaining majority
Answer» C. The contracts involving a minor as a beneficiary may be enforced at the option of the third party
16.

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

A. express contract.
B. implied contract.
C. tacit contract.
D. unlawful contract.
Answer» B. implied contract.
17.

…………….. is a one-sided contract in which only one party has to perform his promise or obligation.

A. Void contract
B. Illegal agreement
C. Unilateral contract
D. Bilateral contract
Answer» C. Unilateral contract
18.

All Contract is a/an ……………..

A. Offer
B. Agreement
C. Acceptance
D. Tr
Answer» A. Offer
19.

A/an …………… is every Promise and every set of promises, forming consideration for each other

A. Offer
B. Agreement
C. Acceptance
D. Tr
Answer» A. Offer
20.

Every agreement and promise enforceable by law is …………….

A. Offer
B. Contract
C. Acceptance
D. Consideration
Answer» B. Contract
21.

“A Contract is an agreement creating and defining obligations between the parties” the definition was put forwarded by

A. Dr. Ambedkar
B. Pollock
C. Salmonds
D. N.D.Kapoor
Answer» C. Salmonds
22.

The Law of Contract is nothing but ...............

A. A Child of Commercial dealing
B. A Child of Religion
C. A Child of day to day Politics
D. A Child of Economics.
Answer» A. A Child of Commercial dealing
23.

To form a valid contract, there should be atleast .............

A. Two parties
B. Three parties
C. Four parties
D. Five parties.
Answer» A. Two parties
24.

Contractual rights and duties are created by ...............

A. State
B. Statute
C. Parties
D. Custom or Usage.
Answer» C. Parties
25.

Agreement is defined by the section ............... of the Indian Contract Act, 1872.

A. Section 2(c)
B. Section 2(e)
C. Section 2(g)
D. Section 2(i)
Answer» B. Section 2(e)
26.

Which of the following labour legislations is implemented only by the Central Implementation Machinery?

A. Trade Unions Act
B. Maternity Benefit Act
C. Industrial Disputes Act
D. Employees’ State Insurance Act
Answer» D. Employees’ State Insurance Act
27.

Under Section 2(12) the Act is applicable to non-seasonal factories employing---------- persons

A. 10 or more
B. 25 or more
C. 20 or more
D. 5 or more
Answer» A. 10 or more
28.

Employees’ Deposit Linked Insurance Scheme was introduced in the year

A. 1976
B. 1961
C. 1923
D. 1948
Answer» A. 1976
29.

The Payment of Gratuity Act was introduced in the year

A. 1961
B. 1923
C. 1972
D. 1976
Answer» C. 1972
30.

The Maternity Benefit Act was introduced in the year

A. 1961
B. 1923
C. 1976
D. 1948
Answer» A. 1961
31.

Which of the following benefits is covered under social security schemes?

A. Medical facilities
B. Retirement benefits
C. Compensation facilities
D. All of the above
Answer» D. All of the above
32.

Making peace with employees by fulfilling all their needs without any resistance is the essence of the

A. Appeasement theory
B. Policing theory
C. Benevolence theory
D. Religious theory
Answer» A. Appeasement theory
33.

The age of dependent for obtaining dependent’s benefit under the Employees State Insurance Act has now been enhanced from 18 years to

A. 22 years
B. 24 years
C. 20 years
D. 25 years
Answer» D. 25 years
34.

Employees who are getting a daily average wages up to ________ are exempted from contributing employees’ share of ESI contribution.

A. Rs 70
B. Rs 384.60
C. Rs 100
D. Rs 50
Answer» C. Rs 100
35.

The employer’s share of contribution under the ESI Act is

A. 8.33 %
B. 1.75 %
C. 12 %
D. 4.75%
Answer» D. 4.75%
36.

As per the latest amendment under the ESI Act, 1948 medical treatment is now available to persons under voluntary retirement scheme also.

A. True
B. False
C. Partly True
D. The Act is silent
Answer» A. True
37.

Which of the following legislations in India is governed by a tripartite organisation consisting of representatives of labour, management and Government?

A. Payment of Bonus Act
B. Industrial Disputes Act
C. ESI Act
D. Maternity Benefit Act
Answer» C. ESI Act
38.

What is the wage limit for employees to be covered under the Employee State Insurance Act as per the latest amendment?

A. Rs. 25,000 per month
B. Rs. 18,000 per month
C. Rs. 15,000 per month
D. Rs. 20,000 per month
Answer» C. Rs. 15,000 per month
39.

Employees’ share of contribution under the ESI Act is

A. 1.75 %
B. 4.75%
C. 12%
D. 8.33%
Answer» A. 1.75 %
40.

Which of the following legislations extends some sort of benefit to retired employees also?

A. Employees’ State Insurance Act
B. Payment of Bonus Act
C. Maternity Benefit Act
D. Employees’ Compensation Act
Answer» A. Employees’ State Insurance Act
41.

PF act is applicable to an establishment engaged in any industry specified in ……...

A. Schedule II
B. Hazardous Industries List
C. Schedule IX
D. Schedule I
Answer» D. Schedule I
42.

Minimum ……….. Persons must be employed in as establishment for the applicability of the PF act.

A. 15
B. 20
C. 35
D. 50
Answer» B. 20
43.

The term “Appropriate Government” is defined in which section of the PF Act?

A. Section 2(a)
B. Section 2 (b)
C. Section 2 (d)
D. Section 2 (e)
Answer» A. Section 2(a)
44.

According to Section 2(a) which is the appropriate Government for a mine in a given state?

A. State Government
B. Central Government
C. Both (A) and (B)
D. None of these
Answer» B. Central Government
45.

Section 2(aa) of the PF act defines the term ……………

A. Basic Wages
B. Authorised Officer
C. Government
D. None of these
Answer» B. Authorised Officer
46.

Deputy Provident Fund Commissioner is an authorised officer.

A. True
B. False
C. None
D. all of the above
Answer» A. True
47.

The term “Basic Wages” is defined in which section of the Provident Fund Act?

A. Section 2(g)
B. Section 2(d)
C. Section 2(b)
D. None of these
Answer» C. Section 2(b)
48.

Bonus is part of Basic Wages as defined in the respective section in the PF Act.

A. True
B. False
C. None
D. all of the above
Answer» B. False
49.

Section 2(d) of the Provident Fund Act defines ………

A. Hazardous Process
B. Employee
C. Employment
D. Controlled Industry
Answer» D. Controlled Industry
50.

The chairman and members of Central Board constituted under Employees Provident Fund are appointed by

A. Supreme Court
B. State Government
C. Central Government
D. None of the above
Answer» C. Central Government
51.

The contribution which shall be paid by the employer to the Fund shall be

A. 5%
B. 7%
C. 12%
D. 10%
Answer» C. 12%
52.

An employer who contravenes or makes default in complying with the provisions of section 6 of this act, shall be punishable with imprisonment for a term which may extend to _____ years

A. 1
B. 2
C. 3
D. 5
Answer» C. 3
53.

This Act shall not apply to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), employing less than ------- persons and working without the aid of power

A. 100
B. 70
C. 50
D. 20
Answer» C. 50
54.

No court inferior to that of ......................class shall try any offence under this Act

A. Sureme Court
B. Presidency Magistrate or a Magistrate of the first class
C. Musiff Court
D. High Court
Answer» B. Presidency Magistrate or a Magistrate of the first class
55.

Under this act, “Insurance Fund” means ……………

A. Employees’ Group Accident Insurance
B. Unit Linked Insurance Plan
C. Deposit Linked Insurance Scheme
D. Medical Insurance Fund
Answer» C. Deposit Linked Insurance Scheme
56.

The Central Government has amended the ceiling for contributions under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) and the Employees' Provident Fund and Miscellaneous Provisions Scheme, 1952 (EPF Scheme) from __________ to __________, with effect from 1 September 2014.

A. Rs. 5000/- to Rs.12000/-
B. Rs. 6500/- to Rs.15000/-
C. Rs. 6500/- to Rs.13000/-
D. Rs. 7500/- to Rs. 15000/-
Answer» B. Rs. 6500/- to Rs.15000/-
57.

GST was introduced in India with effect from

A. 1.1.2017
B. 1.4.2017
C. 1.1.2018
D. 1.7.2017
Answer» D. 1.7.2017
58.

GST was introduced in Jammu and Kashmir with effect from

A. 1.8.2017
B. 1.7.2017
C. 1.1.2018
D. 8.7.2017
Answer» D. 8.7.2017
59.

Constitution Amendment Act, 2016 for GST was

A. 80th
B. 101st
C. 122nd
D. None of these
Answer» B. 101st
60.

As a result of constitution amendment for GST a Separate List --- has been inserted in the constitution.

A. Article 246A
B. Article 146B
C. Article 122 C
D. Article 101B
Answer» A. Article 246A
61.

The incidence of tax on tax is called

A. Tax Cascading
B. Tax Pyramidding
C. Tax evasion
D. Indiret tax
Answer» A. Tax Cascading
62.

Under GST, ‘value addition’ refers to

A. Expenses ‘plus’ profit
B. Cost plus tax
C. Cost plus tax plus‘profit
D. Tax plus profit
Answer» A. Expenses ‘plus’ profit
63.

UTGST is applicable when

A. Sold from Union territory
B. Goods are purchased by Central Government
C. Sold from one union territory to another union territory
D. There is interstate supply
Answer» A. Sold from Union territory
64.

Integrated Goods and Services Tax is applicable when -

A. Sold in Union territory
B. Sold from one GST dealer to another GST dealer
C. Sold within a state
D. There is interstate supply
Answer» D. There is interstate supply
65.

SGST is applicable when

A. Goods are sold within a state
B. Goods are sold from one GST dealer to a customer
C. Goods are sold by a GST dealer to another GST dealer
D. Interstate supply
Answer» A. Goods are sold within a state
66.

The tax which was not merged into GST

A. Counterveiling Duty
B. Excise duty
C. Basic Customs Duty
D. Purchase tax
Answer» C. Basic Customs Duty
67.

Condition is a stipulation which is

A. Essential to the main purpose of contract
B. Collateral to the main purpose of contract
C. Not essential to the main purpose of contract
D. Collateral to the main purpose of contract
Answer» A. Essential to the main purpose of contract
68.

The sale of goods Act deals only with goods which are ______________ in nature

A. Immovable
B. Movable
C. Specific
D. All of the above
Answer» B. Movable
69.

Goods that are identified at the time of contract of sale is called _______________ goods

A. Specific
B. ascertained
C. clear Goods
D. both a & b
Answer» D. both a & b
70.

_________________ is a Stipulation which is Collateral to purpose of contract

A. Condition
B. Warranty
C. Guaranty
D. Collateral Contract
Answer» B. Warranty
71.

__________________________ is the concept of “LET THE BUYER BEWARE”.

A. Information Center
B. Unfair Trade Practices
C. Caveat Emptor
D. Buyer Kingdom
Answer» C. Caveat Emptor
72.

___________________ and _______________ are the two parties involved in Contract of sale

A. Seller & Buyer
B. Agent & Principle
C. Customer & Sales man
D. Customer and supplier
Answer» A. Seller & Buyer
73.

It is a standard rule that risk follows ____________________

A. Seller
B. buyer
C. property
D. Possession
Answer» C. property
74.

The sale of Goods Act enforces in the year

A. 1935
B. 1930
C. 1945
D. 1955
Answer» B. 1930
75.

The subject matter of the contract under Sale of goods Act must be

A. Money
B. Goods
C. Immovable Goods
D. All of the above
Answer» B. Goods
76.

Sale under Sale of goods Act is a/an ____________________ contract

A. Executory
B. Executable
C. Executed
D. None of the above
Answer» C. Executed
77.

In sale the transfer of property in goods from the seller to the buyer takes place

A. At the end of contract
B. Immediately
C. In a future Date
D. Both a&b
Answer» D. Both a&b
78.

In Agreement to sell the transfer of property in goods from the seller to the buyer takes place

A. At the end of contract
B. Immediately
C. In a future Date
D. Both b&c
Answer» C. In a future Date
79.

Which of the following is not a subject matter in a Sale of goods Act

A. Trade mark
B. Good will
C. Money
D. Water
Answer» C. Money
80.

As per Sale of goods Act Movable goods does not include

A. Gas
B. Growing crop
C. Electricity
D. Money
Answer» D. Money
81.

The goods must be ________ goods for transferring the property in the goods

A. Ascertained
B. Unascertained
C. Future
D. All of the above
Answer» A. Ascertained
82.

The subject matter of the contract must necessarily be _____________

A. Sale
B. Product
C. Service
D. Goods
Answer» A. Sale
83.

A consideration in contract of sale must be ______________ only

A. Goods
B. movable only
C. price
D. Purchase
Answer» C. price
84.

Transfer or agree to transfer the _____________ of the goods is the purpose of sale of goods Act

A. Property
B. Possession
C. Value
D. Usage
Answer» B. Possession
85.

A sale is a ______________ contract

A. Implied
B. Executed
C. Agreed
D. Executory
Answer» B. Executed
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