Mercantile Law 2001 - Solved MCQs NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc. Set 1
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(1) A proposes, by a letter sent by post, to sell his house to B. The acceptance of the proposal is
complete:
Answer: the moment the letter is received by B.
(2) In order to convert a proposal into a promise, the acceptance must be:
Answer: Unconditional
(3) A voidable contract may be turned by the option of the party at a loss into:
Answer: A valid contract
(4) The maximum number of members in a private company is:
Answer: 50
(5) The maximum number of partners in a firm is:
Answer: None of these
(6) The Companies Ordinance, 1984:
Answer: None of these
(7) A Company is subsidiary of another Company:
Answer: If the other company holds more than 50% of its voting shares
(8) P appoints A as his agent. A is not a person of full age:
Answer: The appointment of A is valid
(9) Statutory meeting of a Company is held:
Answer: Once in a life time of the Company
(10) Publication of Prospectus is compulsory by:
Answer: A Private Company
(11) Award is a decision given by:
Answer: An arbitrator
(12) A lends some ornaments to B to be used in a marriage. The transaction is:
Answer: A bailment
(13) A partner may be expelled from a partnership by:
Answer: A majority of partners
(14) Third Party Insurance is an Insurance Relating to:
Answer: None of these
(15) A Bill of Exchange has:
Answer: Three parties
(16) A minor:
Answer: Can make, draw, accept, or indorse a negotiable instrument
(17) A void as well as an illegal contract is:
Answer: Not familiar in effect
(18) In the Companies Ordinance, 1984, there are:
Answer: Kinds of shares
(19) Like a cheque, a bill of exchange may be:
Answer: Cannot be crossed
( “Like” should not be used rather “unlike” )
(20) An executor consideration takes the form of:
Answer: A promise to be performed in future