MCQS of business law and taxation

Chapter 01

1) _________means _________means those rules and principles principles that govern and regulate regulate social conduct and observance of which can be enforced in courts. a) Law  b) Rules c) Poli Polici cies es d) Proc Proced edur ures es 2) Law is either either public public law or _________ _________ law. law. a) Public b) Priv Privat atee c) Local d) Fam Family ily ) Public Public law is divided divided into ______cl ______classes. asses. a) !ne  b) "wo "wo c) "hree d) Four our #) $riminal $riminal law law is______ is________ __ law. law. a) Publ Public ic  b) Private c) Local d) Reve Revenu nuee %) Public Public law includes includes the the _______ _______ law. law. a) $ons $onsti titu tuti tion on  b) &dministrative c) $rim $rimin inal al d) All of th these ese

') Public law does not include the_________ law a) $onstitution  b) &dministrative c) $riminal d) Private () Legislative a part of a state formed by _________. a) $ompany  b) Firm c) Parliament of Pakistan d) overnor  *) __________law govern relationship between individual and state. a) Public  b) Private c) $ivil d) $riminal +) __________ law govern relationship of individuals between individual. a) Partners  b) Person c) Private d) ,nternational 1-) __________ law identifies the circumstances in which individual may see/ remedies. a) Civil  b) $riminal c) Local d) &dministrative

11) __________ law governs section of states and defines relationship between individuals and state. a) $ivil b) Criminal c) Local d) Family 12)$ivil law affects only in0ured parts and not entire. a) $ompany  b) $ash c) Society d) Firm 1)__________ law cases as a result of crime affect whole community or society. a) Private  b) Public c) $ivil d) Criminal 1#) $ommon law is a complete. a) ub0ect b) System c) "opic d) !b0ect 1%) $ivil law regulates __________. a) Proceed b) Dispute c) Punish d) entence

1') __________ law punishes guilty person. a) Criminal  b) $ivil c) $ommon d) Local 1() 3ample of private law includes __________. a) $ommon Law  b) Law of $onduct c) Law of uarantee d) A to C 1*) 3ample of civil law includes __________. a) $ommon Law b) Company Law c) Law of uarantee d) Law of "ort 1+) 3ample of public law does not include __________. a) Common Law  b) ,nternational Law c) &dministration Law d) Law of &gency 2-) 4hich of the following is not legislative authority at federal level5 a) 6ational &ssembly  b) 7ouse of enate c) President d) Judiciary

Chapter 02

1) Lawful offer is5 a) Promises  b) Legal Relations c) Proposal d) Presentations

2) !ffer when accepted becomes a) Promises  b) $ontract c) &greement d) Proposal

) &n agreement is enforceable by law is called. a) &n agreement  b) $ontract c) Partnership d) A  !

#) 4aiver means ______ the rights. &ccording to $ontract &ct 1*(2 a) "o !bey  b) "o 8a/e c) "o Leave d) "o Follow %) 4hen a new contract is substituted for an e3isting contract either between the same parties or different parties _______ occurs. a) #ovation  b) Rescission c) Remission 9 4aiver  d) &ccord 9 atisfaction

') &n offer is may be. a) Conditional

 b) :ncertain c) &mbiguous d) $apable of being accepted () Free consent is defined in section____ of the $ontract &ct. a) 11  b) 12 c) 1 d) $% *) pecific offer may be accepted by a) &fferee  b) 7is wife c) 7is servant d) "hird party +) &cceptance must be given in a) :sual manner  b) Prescribed manner c) &ny suitable manner  d) 8ore effective manner  1-) &greement made without consideration is a) 'oid  b) :nlawful c) :nforceable d) ;oidable 11) $onsideration a) 8ust be ade
1#) $onsideration to be valid must be a) *eal  b) ,llusory c) !pposite to public policy d) &mbiguous 1%) $onsent is said to be free when it is not caused by a) $oercion  b) 8ista/e c) Fraud d) All of these 1') &n agreement which is enforceable by law at the option of one or more of the parties thereto but not at the option of the other or others. a) ;alid contract b) 'oidable contract c) $ontingent contract d) 6one of these

1() &n &greement formed by an e3change of a promise between two parties. a) :nilateral contract b) !ilateral contract c) ,mplied contract d) 3press contract 1*) &n &greement created by actions of the parties involved but it is not written or spo/en. a) ;alid contract b) +mplied contract c) 3press contract d) $ontingent contract 1+) & _______ contract is one in which a promise is conditional and shall be  performed in future. a) ;oidable contract  b) ,mplied contract c) 3press contract d) Contin,ent contract

2-) =ischarge of contract means the termination of a contractual relationship  between parties according to the act. a) 1*(1 b) $-./ c) 1*( d) 1*(#

Chapter 03

1) "he sale of oods &ct 1+- came in to force a) eptember 1 1+ b) =ecember 1 1+c) &ugust 1 1+d) July $0 $123 2) "he sale of oods &ct 1+- contains a) '*  b) (c) (2 d) 44 ) $ontract of sale may be a) &bsolute  b) $onditional c) $ontingent d) 5ither A or ! #) ale is also /nown as a) Absolute Sale  b) $onditional ale c) $ontingent ale d) 6one of these %) =efinition of contract of sale is given under  a) ection # of the &ct  b) ection # >b) of the &ct c) ection # >a) of the &ct

d) Section % 6$) of the Act

') $ontract of ale may be a) 3ecuted $ontract  b) 3ecutory $ontract c) Future $ontract d) A  ! () ale can be only made for  a) Specific 7oods  b) Future goods c) $ontingent goods d) Present goods *) $ontract of sale cannot be made for  a) &griculture crops b) 5lectricity plant c) hares and debentures d) lectricity +) $ontract of sale is a generic term which includes a) &ctual sale  b) &n agreement to sale c) Future sale d) A  ! 1-) ale of goods &ct 1+- defined condition on a) ection 12 >1)  b) ection 12 >a) c) ection 12 >b) d) Section $/ 6/) 11) ,n an auction sale the seller can have how many bidders from his side a) &ne  b) "wo c) "hree d) Four  12) ection 2 of "he ale of oods &ct is about a) 3ception b) Definition c) Principle

d) Price 1) =elivery of goods may be either  a) &ctual  b) $onstructive c) ymbolic d) All of above 1#) :npaid seller has a right against a) "he goods  b) "he carrier of goods c) "he buyer  d) A  C 1%) ,n auction sale goods are ultimately sold to______bidder. a) 8i,hest  b) Lowest c) 8iddle level d) 6one of these 1') &ppropriation to be legally valid must be a) :nconditional  b) :nintentional c) ?y mutual consent d) A  C 1() "he unpaid seller has lien over the goods for  a) Price of ,oods  b) 4arehouse charges c) $arrier charges d) ell of goods 1*) ale of goods &ct 1+- has defined warranty as a) ection 12>1)  b) ection 12>2) c) ection 12>a) d) Section $/62) 1+) &n unpaid seller has rights against goods a) Right of line  b) Right of re@sale c) Right to withhold delivery d) All of above

2-) ale of goods &ct 1+- defines the term Aunpaid sellerB a) &ccording to section #2  b) &ccording to section # c) &ccording to section ## d) Accordin, to section %9

Chapter 04

1) 6egotiable ,nstruments &ct a) 1*(2  b) 1**2 c) 1+2 d) $--$ 2) _______a person who draws che
#) "he negotiable instruments &ct included which of /ind. a) Promissory notes  b) ?ill of e3change c) $he
d) Payee ') & negotiable instrument means a) Promissory note  b) ?ill of e3change c) $he
+) ,n promissory note there are _________ parties. a) !ne b) "wo c) "hree d) Four  1-) __________ re
a) $raft  b) ?ull c) Draft d) Pass 1) & _________ is always payable is money no any other thing can be paid at maturity. a) #e,otiable instrument  b) 8oney c) 7older  d) tamp

1#) _________ is a drawerCs ban/er on whom che
 b) Force c) 6ame d) Stopped 1+) & bill of e3change may be drawn on any person including a ____  a) !anker  b) Person c) !fficer  d) "eacher  2-) 6otice of dishonour of che
Chapter 05

1) "he partnership &ct 1+2 came into force on a) =ecember 1 1+2  b) 6ovember 1 1+2 c) &ugust 1 1+2 d) &ctober $0 $12/ 2) Partner is a) &n agent of the firm  b) Principal to other partners c) A,ent as well as principal d) 6one of these ) "he liability of partner is a) ;nlimited  b) Limited c) Limited to his share in profit d) Limited by guarantee #) Registration of partnership is a) $ompulsory by law b) &ptional c) !bligatory by the circumstance d) 6one of these %) Rights and liabilities of the partners are generally determined by a) Partnership agreement

 b) Partnership act c) ,mplied by their conduct d) A  ! ') 4hat is re
11) Partnership deed may be made a) ,n writing  b) !rally c) ?y the conduct of parties d) 5ither A0 ! and C

12) 4hich one of the following is 0oint venture5 a) Particular Partnership  b) Partnership at will c) eneral partnership d) Partnership for fi3ed period 1) very partner is sub0ect to the duties a) 8andatory duties  b) =uties sub0ect to agreement c) :nder the provision of act d) A  ! 1#) ,n case of dissolution of the firm if public notice is not given who will continue to be liable for the acts done after dissolution. a) leeping partner   b) =ormant partner  c) ,nsolvent partner  d) Partners of the firm 1%) Retiring partner will remain liable for all the acts of the firm a) ?efore retirement  b) Pending at the time of retirement c) &fter retirement d) A  ! 1') 4hich of the following is not type of partnership5 a) eneral partnership  b) Limited partnership c) Limited liability partnership d) Specific partnership 1() ,mplied authority of a partner is derived from a) $onduct of parties  b) Law c) ?usiness usage d) All of above 1*) 4hich of the following is not /ind of partnership5 a) Partnership at will  b) Particular partnership c) Partnership beyond fi3 term d) Partnership at common interest 1+) Public notice of retirement may be given a) ?y retiring partner 

 b) ?y any other partner  c) ?y the partnership firm d) A  ! 2-) ,n partnership there is a) $o@ownership  b) 8utual agency c) Fiduciary relation d) All of above