Business Law MCQs

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The following Business Law Multiple Choice Questions (MCQs) are from Contract Act, Partnership Act, Sales of Goods Act, Negotiable Instrument Act, and Companies (or Corporate) Law. Find answers to the questions at the bottom of the page.

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1. According to Contract Act, what is true about the “Contract”?
I. Legal Term
II. Binding agreement
III. Always in written
(A) II only
(B) I and II only
(C) II and III only
(D) I, II and III

2. Contract can be signed between
(A) Individuals
(B) Legal Entities
(C) Both (A) and (B)
(D) None of these

3. In general, Partnership entails
(A) Limited Liability
(B) Unlimited Liability
(C) No Liability at all
(D) Both (A) and (C)

4. Which kind of partnership entails more legal benefits?
(A) Limited Liability Partnership
(B) Unlimited Liability Partnership
(C) Ordinary Partnership
(D) None of these

5. Limited Liability in Partnership has been introduced after seeking inspiration from
(A) Sole Proprietorship
(B) Company or Corporation
(C) Both (A) and (B)
(D) None of these

ANSWERS: BUSINESS LAW MCQS
1. (D) I, II and III
2. (C) Both (A) and (B)
3. (B) Unlimited Liability
4. (A) Limited Liability Partnership
5. (B) Company or Corporation