Legal and Business Environment Question and Anwsers

Module 1

1. Which environment describes characteristics of society in which the organization exists?

Social Environment

Technological Environment

Legal Environment

Political Environment

2. _ _ _ change is a potent form for reconfiguration of industrial boundaries.

Technological

Economical

Organization

Environment

3. Micro Environment is also known as_ _ __?

Internal

External

Both

None of the above

4. Macro Environment is also known as_ _ __?

Internal

External

Both

None of the above

5. _ _ _is not the factor of external business environment

Political

Economical

Customer

Technological

6. Business environment is the complex because it consists of various inter- dependent factor, events and influences.

True

False

7. Internal business environment represents _ _ _ _ of the business and external business environment represents _ _ _ _ of the business

Strength and weakness, opportunities and threats

opportunities and threats, Strength and weakness

Strength and opportunities

weakness and threats

8. The _ _ _ _ environment refers to the factors that affect the consumers purchasing power.

Economic

Political

Cultural

None of the above

9. In which of the following basic categories can business environment be divided?

Local and regional

Internal and external

Financial and Non financial

Regional and national

10. External factors affecting a business environment also can be referred to _ _ _ factor.

Relevant

Controllable

Uncontrollable

Global

 

Module 2

1. Strength and weaknesses n a business can be categorized under…….

External factors

Internal factors

Poor planning

Good management

2. PESTLE analysis is a tool for environmental factors having prominent effects on organizational activities.

Macro

Micro

Internal

External

3. PESTLE analysis is used by organizations…….. launching a new venture or ……. Entering into new industry.

Before, Before

Before, After

After, after

During, before

4. PESTLE and SWOT both are used as strategic ……tools

Planning

Implementation

Both of the above

None of the above

5. Globalization is driven by …….. and changes in world economy.

Technology

Finance

Products

Advancement

6. The …….. comprises of economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executives decision making.

Internal environment

External environment

Operating environment

Societal Environment

7. What is meant by the term stakeholder?

A person who is not related with a business

A person who is related with a business

A person who owns a business

A person who owns a business

8. The environmental segments that comprise the general environment typically will NOT include.

Demographic factors

Socio- cultural factors

Substitute products or services

Technological factors

9. Which of the following is not an advantage of globalization?

Cost advantage

Quality improvement

Larger market share

Low employment

10. As per the survey conducted by the competitive intelligence professional, it has been revealed that SWOT analysis was used by more than …….?

50

82

80

30

 

Module 3

1. Which of the following is not an objective of business laws?

Orderly conduct of business

Establish a framewaork of judicial and quasijudicial authorities related to regulations

To allow growth of big and powerful corporate with economic power

To protect interests of consumers

2. When dealing with business disputes, the judges

Have to strictly judge the case based on statutes

Have flexibility in interpreting the laws depending on the context

Have the power to enact new laws

None of the above

3. Which of the following statement is true?

Indian legal system is based on civil law tradition

Common law tradition is generally uncodified

Civil law is developed through the doctrine of stare decisis

All of the above

4. A good knowledge of the legal environment is necessary for a manager because

Lack of knowledge is not excuse in the court of law

To proactively manage business deal

Convert regulatory constrains into opportunities

All of these

5. Which of the following role is being played by the government that impose greater impact on the business?

Planning

Regulatory

Promotional

All of these

6. The companies Act, securities and exchange board of India(SEBI) Act and SEBI regulations are formulated which of the following?

Protecting investor and ensuring a stable financial market

Governing the nature of formation/ incorporation of the legal entity

Regulating the export/ import and usage of foreign currencies

None of the above

7. Which of the following statements is an advantage of having a good legal knowledge?

It protects and enhances the value of organizational resources

It creates a multitude of options through legal tools.

It coverts regulatory constraints into opportunities.

All of these

8. Which of the following laws pertains to ownership and right of inventions, copyrights, trademark etc?

Companies Act

Contract Act

Patents, copyright and trade marks laws

Factories Act

9. Which of the following law is defined as the doctrines and principles announced in case?

Case law

Statute law

Common law

None of the above

10. Which of the following is not the main function of t law?

Stability

Predictability

Continuity

None of the above

 

Module 4

1. Agreement not enforceable by law is said to be……… ?

Void

Voidable

Vaild

None of the above

2. All agreement are not contracts, but all contracts are agreements.

True

false

3. Contracts can be created on the basis of

Formation

Execution

Enforcement

All of the above

4. A contract in which the task or action has been completed by one or both the parties is called as…………..

Bilateral contract

Unilateral contract

Executed contract

Executor contract

5. When is the communication of a proposal is complete

When it comes to the knowledge of the person tp whom it is made

When it comes to the knowledge of the proposer

Both (a) and (b)

None of the above

6. A agrees with B to discover treasure by magic. The agreement is ------?

Vaild

Void

Voidable

Voidable at the option of the promise

7. Offer is defined under section2(a) is

Communication from one person to another

Suggestion by one person to another

Willingness to do or abstain from doing an act in order to obtain the assent of other thereto

8. Which one is correct

Proposal+ acceptance= promise

Promise+ consideration = agreement

Agreement+ enforcement= contract

All of the above

9. Goods displayed in a shop with price tag is an ……..

Offer

Invitation to offer

Counter offer

None of the above

10. Which of the following is enforceable by law

If A saves B from an accident, and B later promises to pay a reward to A.

A find B’s purse and gives it to him. B promises to give A Rs.250

A supports B’s infant daughter. B promises to pay A’s expenses in so doing

All of the above.

 

Module 5

1. The consent is said to be free when it is not caused by

Coercion

Undue influence

Fraud or misrepresentation

All of the above

2. Misrepresentation under section 18 means

A positive assertion in a manner not warranted by the information of the person making it, not true but he believes it to be true.

Any breach of duty which gain an advantage to the person committing it by misleading another to his prejudice.

Causing a party to make an agreement to make mistake as to the subject matter of contract.

All of the above

3. An offer made to the world at large is called as………

General offer

Specific offer

Express offer

Implied offer

4. --------- contract is made without any intention of parties.

Executor contract

Quasi contract

Implied contract

Express contract

5. The term quid pro quo is applied in relation to

Legality of object

Capacity of parties

Consideration

Free conset

6. Rescission of contract means

Minor changes

Alteration of the terms

Cancellation of contract with the consent of both parties

All of the above

7. A contract must be discharged

By performance

By impossibility of performance

By breach

All of the above

8. Person M owes Rs 10000/- to person Y and person Y accepts RS 10000/- in full and final settlement of the outstanding due. This is called.

Cancellation

Remission

Alteration

Novation

9. The parties to the contract agree to substitute the existing contract with new contract. This is

Alteration

Recession

Novation

None of the above

10. The term anticipatory breach refers to:

Terms or clauses of the contract with regard to anticipated breach

A party rescinding or renouncing his obligations before the date of actual performance

A position of impossibility for a party to perform his obligations

Circumstances when both parties agree to cancel the contract

 

Module 6

1. The person who are not capable to enter into the contract, does not include;

Minor

Agent

Drunken

convict

2. A contract by which one party promises other to save from loss which may be caused either by the conduct of the promisor or by the conduct of any other person is called as--------

Contract of Bailment

Contract of Guarantee

Contract of Pledge

Contract of Indemnity

3. In a Contract of indemnity, there are ---------parties and ------contract.

3 parties, 1 contract

2 parties, 2 contract

3 parties, 3 contract

2 parties, 1 contract

4. A Contract of guarantee is ---------agreement.

Bipartite agreement

Tripartite agreement

Both A and B

None of the above

5. Liability of surety is --------

Conditional on default

Independent of default

Can be conditional or independent

None of the above

6. A surety can discharge from his liability by---------

By notice

By novation

By death

All of the above

7. Bailment means----.

The goods delivered to be returned by way of an equivalent in other commodities.

The goods delivered to be returned by way of equivalent in money.

The goods is delivered by one person to another for some purpose to be specifically returned or otherwise disposed of as per the order of bailor.

All of the above

8. In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would under similar circumstances. The statement given above is ---------

True

False

Partly true

Partly false

9. Bailor in pledge is known as----------

Bailee

Pawnor

Pawnee

None of the above

10. As per Indian Contract Act, an agent is one---------

Who is employed by another

To do any for another

To present another in dealing with third person

All of the above

Mid Term

1. Which of the following mentioned is not the component of internal environment of an organization

Organizational resources

Core competencies

Social environment

Organizational capabilities

2. Technological environment comprises of all those environment comprises of all those environmental factor except

Increased government regulations

Research and development

Inflation rates

Pace of technological change

3. --------- is the general environment, specific to a larger geographical area, like a country or a state which affects all business entities.

Internal environment

External environment

All of the above

None of the above

4. ----------is the tool that organization use for analyzing and monitoring macro- environmental factors having prominent effect on organizational activities.

PESTLE analysis

SWOT analysis

Organizational analysis

None of the above

5. --------have the potential to weaken an organization, either financially or otherwise.

Weakness

Threats

All of the above

None of the above

6. Stat whether the statement is true or false Business Environment analysis is an important prerequisite for creating business strategies.

True

False

7. Free flow of capital, goods, services, human resources and technologies across nations is a feature of --------.

External environment

Internal environment

Globalization

Environmental analysis

8. The main function of ------------is to provide stability, predictability and continuity so that people can determine what is legally right and wrong the rights, obligations and privileges of citizens are clearly and formally demarcated.

Business environment

Business environment analysis

Law

None of the above

9. Stat whether the statement is true or false. Business law is the part of civil law.

True

False

10. Which of the following statement is true?

Indian legal system is based on civil law tradition.

Common law tradition generally uncodified.

Civil law is developed through the doctrine of stare decisis.

All of the above

11. Which of the following is not a function of a legal business contract?

Enable business to plan forward

Establish the responsibilities

Ensure that any breach of terms and conditions of agreement can be remedied

Does not allocate the business and economic risks in transactions

12. As per the Indian contract act, to whom the offer can be made mentioned among the following?

An individual

Any group of people

The world at large

All of the above

13. The manager of the company claiming to act as an agent on the company’s behalf but without the company’s authority accepted an offer extended by person B. the person B thereafter withdrew the offer, but company approved the manager’s acceptance. Then B will be held to be bound by that acceptance. His revocation of the offer will be held invalid.  The above mentioned case comes under which of the following type of agency.

Agency implied from circumstances

Agency by ratification

Agency of necessity

Agency by estoppels

14. ----------is a special kind of bailment.

Gratuitous bailment

Non- Gratuitous bailment

Pledge

None of the above

15. Chirag lends Dushyant’s money to Gopi without being authorized to do so. Afterwards, Dushyant authorizes this transaction. This is a case of agency by:

Necessity

Estoppel

Express agent

Ratification

 

Module 7

1. The sale of goods act deals only with goods which are------------in nature

Immvable

Movable

Specific

All of the above

2. Goods that are identified at the time of contract of sale is called------gods

Specific goods

Ascertained goods

Clear goods

Both A & B

3. Sale under sale of goods act is a/an ----------------contract

Executor

Executable

Executed

None of the above

4. In agreement to sell the transfer of property in goods from the seller to the buyer takes place

At the end of contract

Immediately

In a future date

Both B & C

5. As per sale of goods act movable goods does not include

Gas

Growing crop

Electricity

Money

6. Consideration in contract of sale must be ---------only

Goods

Movable only

Price

Purchase

7. In sale in case of loss of goods, the loss will fall on the ------------

Offeror

Buyer

Seller

Surety

8. A sold his laptop to B, but for some repairing purposes A retained the laptop with him. The laptop is stolen by C, in this case the loss will fall on

B

C

A

None of them

9. Ashwin exchanged his old car with the new car Sadiq and gave the difference in cash. This transaction is called as----------

Barter

Sale

Agreement to sell

Contract

10. Stipulation collateral to the main purpose of contract is called-----------

Warranty

Guaranty

Condition

None of the above

Module 8

1. Product liability does not apply in case of e-commerce

True

False

2. A seller discloses personal information given by his customer to him (in confidence). She is indulging in -----

Unfair trade practices

Monopolistic practice

Restrictive practice

None of these

3. Who selects the member of the mediation cell of the national commission?

President of commission

Vice president of India

President if India

Prime minister of India

4. Which of the following Act is meant to protect consumers from hoarding and profiteering of essential commodities by traders?

Standards of weights measures (enforcement) act, 1985

The essential commodities Act 1955

The essential commodities (special provision) Act, 1981

All of these

5. Which of the following take suo motu cognizance of the irregularities or the unfair trade practices?

National commission

Supreme court

National council

Controlling authority

6. In this new act, the CPCs have been made as advisory bodies for the promotion and protection of consumer right. In CPC, the second C stands for

Consumer

Complaint

Council

Commission

7. The national commission also has administrative control over all the state commission

True

False

8. Which of the following is not an objective of the consumer protection act, 2019?

Helping in disposing off the already existing and pending cases in the consumer courts throughout India.

Deploying a grievance redressal mechanism in a manner as to dispose off consumer complaints swiftly.

Simplifying the consumer grievance redressal process.

To administer all manufacturers.

9. In case a spurious drug results in the death of a consumer, the manufacturer will be imprisoned for a term not less than______

1 year

5 years

10 years

2 years

10. In august 2019, the Consumer protection Act 1986 repealed.

True

False

 

Module 9

1. Which of the following is patentable under the Indian Patent Act?

Discovery of a new scientific principle

A new product created by an arrangement of known existing products each functioning independently of one another in a known way

Method of horticulture

None of these

2. Which of the following are patentable under the Industrial Designs Act of India?

Visual design and aesthetic appearance of a smart watch

The circuit board design of the smart watch

Innovative functions of the smart watch

All of these

3. The protection for registered design under the Indian Act is available for a period of ____ years.

10

20

5

15

4. Which of the following is not a condition for patentability?

Inventive step

Industrial applicability

Inventive information

A method of agriculture or horticulture

5. Which of the following options is an advantage of registering a trademark under the trademark act?

Prevents any competitor from using the mark for similar goods

Provides legal protection under the trademarks law

Registration gives nationwide priority rights to use the trademark

All of these

6. Do layout designs of integrated circuits and plant varieties get protection under the IPR law?

Yes

No

May be

None of these

7. Which of the following laws provides protection to trade secrets?

Common law

Civil law

Trade marks Act 1999

None of these

8. The registration of a trademark is compulsory

True

False

9. The Alternate Dispute Resolution is managed and administered by:

Indian controller general of patents, design and trademarks

An agency of WTO and TRIPS

An agency of WIPO

None of these

10. The collective mark is used to show the trade connection to the organization

True

False

 

Module 10

1. How can a company change its Articles of association? Choose the correct option.

A resolution of the board of directors

A special resolution

An ordinary resolution in the Annual General Meeting by the shareholders

Obtaining permission from the National Company Law Tribunal

2. Which among the following refers to the certificate issued by the company under its common seal specifying shares held by any members?

Incorporation

Share certificate

Issuance certificate

None of these

3. Which among the following defines the objective of the company?

Memorandum of association

Articles of association

Share certificate

None of these

4. As per the doctrine of ______, a person will not be affected by any irregularity in the internal management of the company.

Intra virus

Ultra virus

Constructive notice

Indoor management

5. Memorandum of association specifies the rules, regulations and by-laws for the internal administration of the company.

True

False

6. Which among the following is the by-law for the internal administration of the company?

Certificate of incorporation

Articles of association

Memorandum of association

None of these

7. Which among the following is the type of prospectus that does not specify the complete particulars regarding the quantum or the price of the securities being offered?

Red herring prospectus

Shelf prospectus

Deemed prospectus

None of these

8. Which of the following documents must be registered with the Registrar of Companies during the incorporation of a company?

Prospectus

Memorandum association

Articles of association

Both B and C

9. From the given options, which one method is used to change the name of a company?

An ordinary resolution

A special resolution

An approval of central government

A special resolution and with the approval of the central government

10. When is a company said to have been registered?

It gets a certificate for the commencement of business

It files the memorandum of association and articles of association

It actually starts the business

It gets an incorporation certificate with the registrar of compaines

 

Module 11

1. The Right to Information Act came into effect on

October 12, 2005

August 15, 2005

June 15, 2005

March 12, 2005

2. Which one of the following does not come under the definition of information under the RTI Act, 2005?

Contracts

Reports

Logbooks

Case study

3. The time limit for supplying the information under the RTI Act is 45 days.

True

false

4. The headquarter of the Chief Information Commission is based in

Karnataka

Delhi

Rajasthan

Panjab

5. The public authority must appoint the Chief Information Commissioner within

50 days

100 days

70 days

None of these

6. The Appointment Committee of Central Chief Information Commissioner (CIC) includes

Prime Minister (chair)

Leader of the opposition in Lok Sabha

Union cabinet Minister

All of these

7. What is the fee to obtain information under the RTI Act, 2005?

30/-

40/-

70/-

10/-

8. In how many days can an appeal be filed with the senior rank officer of the Central Information Commissioner or State  Information Commissioner:

30 days

20 days

15 days

25 days

9. The public information officer is required

To deal with information request

To furnish information within the specified period

Both of these

None of these

10. The public and state public officers are appointed within

100 days

200 days

50 days

None of these

 

Module 12

1. Which one of the following Acts replaced the MRTP Act?

The partnership Act, 1932

The information Technology Act 2000

The competition Act, 2002

The competition Act, 2013

2. Among the following, which is/are the benefit(s) of e-governance?

Helps in reducing corruption

Increases competition

Encourages good governance

Both A and C

3. A third party entity that processes data is called_____.

DPO

Data fiduciary

Data processor

DPAI

4. The compensation under the Workmen Compensation Act, 1923 is paid under which of the following conditions?

Death

Permanent

Temporary disability

All of the above

5. The state and central governments have power to fix and revise minimum wages

True

False

6. The Information technology Act, 2000 provides recognition to e-contracts, digital signatures, and electronic documents.

True

False

7. When the exchange of information takes place between government bodies it is called:

G2C

G2G

G2E

G2B

8. A partnership deed usually contains the particulars relating to a :

Name of firm and partners

Nature of business and duration of firm

Capital contribution, profit/ loss sharing ratio and other agreed terms

All of these

9. The Competition Act, 2002 is not applicable in which of the following cases?

Banks

Venture capital fund

Foreign institutional investors

All of these

10. Which one of the following is/are the method(s) for fixing minimum wages?

Committee method

Notification method

Both of the above

None of the above

 

End term

1. A partnership Act of a firm means

Any  partner or agent of the firm which gives rise to a right enforceable by or against the firm

Any act by all the partners

All of the above

None of the above

2. What information shall be given to the Registrar of firms by a registered partnership firm:

New opening/ closing of the existing branch, if any

Change in the name of and address of the partner(s)/ change in the consititution of the firm

Change in the name of the firm or in location of the principle place of business

All of the above

3. _______ means ‘something legally transferable from one person to another for a consideration.’

Instrument

Negotiable

Negotiable instrument

All of the above

4. _________ an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

Promissory note

Bill of exchange

Cheque

None of the above

5. Which one of the following is not the power of the Chief Information Commissioner?

To receive complaints

To conduct inquiry

To take disciplinary action

To waive off monetary penalty

6. The designated officers shall provide the necessary information to the public.

True

False

7. From the given option, which one method is used to change the name of a company?

An ordinary resolution

A special resolution

An approval of the Central Government

A special resolution and with the approval of central government

8. The Companies Act, 2013 has completely done away with the requirement of appointing one or more debenture trustees before making a public issue of debentures.

True

False

9. How can a company change its Articles of Association? Choose the correct option.

A resolution of the Board of Directors

A special resolution

An ordinary resolution in the Annual General Meeting by the shareholders

Obtaining permission from the National Company Law Tribunal

10. The protection for registered design under the Indian Act is available for a period of _____ years.

10

20

5

15

11. Which of the following are patentable under the Industrial Designs Act of India?

Visual design and aesthetic appearance of a smart watch

The circuit board design of the smart watch

Innovative functions of the smart watch

All of these

12. Who selects the members of the mediation cell of the National Commission?

President of commission

Vice president of India

President if India

Prime minister of India

13. National Commission also has an administrative control over all the state commissions.

True

False

 

14. Which of the following is not requisite of a valid contract of sale?

Two parties

Transfer of property

Goods and practice

All of these

15. Which among the following are essential for the formation of the contract of sale?

Offer and acceptance

Invitation to make an offer

Ownership transfer

All of these