Chapter-1 Self Assessment Questions 1. Which of the following types of damages are NOT available in contract cases? (a) Monetary damages
(b) Equitable remedies
(c) Pecuniary damages
(d) Tort damages
2. Which of the following are essential features of a valid simple contract? (a) Offer and acceptance only. (b) Offer, acceptance and consideration only. (c) Offer, acceptance, privity, certainty and duress only. (d) Offer, acceptance, consideration, intention to create legal relations and certainty of terms. 3. Consideration, an essential element in the formation of a valid contract, may be identified as: (a) The need for fairness in the contract. (b) The intention of the parties to be legally bound. (c) A balance in the terms of the agreement. (d) The 'bargain' element of a contract. 4.
is one of the essential elements of a valid contract.
(a) Legality of purpose
(b) Parol evidence
(c) Reasonable claim
(d) Memorandum of belief
5. To be enforceable, a contract must be: (a) court-ordered.
(b) stamped.
(c) in writing.
(d) notarized.
6. The contract Act came into force (a) from 1 september.1972
(b) from 1 september.1872
(c) before 1 september.1882
(d) after 1 september.1872
7. What is a unilateral contract? (a) A contract in which both parties are legally bound to perform their side of the agreement. (b) A unilateral contract is a contract whereby only one party promises to perform an act if the other party performs a stipulated act, but the other party is not under an obligation to perform the stipulated act. (c) A contract involving only one party. (d) A contract that either party can withdraw from at any time. 8. What are the requirements for a valid and binding contract? (a) Offer, acceptance, consideration, and intention to create legal relations. (b) Offer, acceptance, certainty, practicality, and intention to create legal relations. (c) Offer, acceptance, certainty, consideration, and reasonableness. (d) Offer, acceptance, certainty, consideration, and intention to create legal relations 9. Which ONE of the following usually amounts to an offer? (a) Goods sold through a machine. (b) Advertisements. (c) Displays of goods. (d) An invitation to submit a tender. 10. An offer can be terminated in a number of ways. Which ONE of the following is NOT an effective way to terminate an offer? (a) Rejection by the offeree. (b) Failure of a condition precedent. (c) Revoking the offer following acceptance. (d) Lapse of a reasonable time. 11. Which ONE of the following statements regarding acceptance is true? (a) Silence does not constitute valid acceptance. (b) An offeree can accept an offer of which he was not aware.
(c) Generally, there is no need for an offeree to communicate his acceptance to the offeror. (d) Generally, acceptance need not precisely match the terms of the offer. 12. What is the principal effect of a counter-offer? (a) A counter-offer destroys the original offer and replace it with a new offer. (b) A counter-offer creates a binding contract based on the terms of the counter-offer. (c) A counter-offer creates a new offer, but the original offer is still capable of being accepted. (d) A counter-offer creates a binding contract based on the terms of the original offer. 13. Which one of the following statements is incorrect in relation to the rules of acceptance? (a)Generally remaining silent will not amount to acceptance. (b)Unilateral contracts are usually accepted by conduct. (c)Acceptance of an offer means unconditional agreement to all the terms of that offer. (d)Unilateral contracts are usually accepted by communication. 14. Which of the following is not an exception to the rule that acceptance must be communicated to the offeror? (a)When an offer may state or imply that acceptance need not be communicated. (b)The postal rule. (c)Where parties communicate face to face. (d)Performance of a unilateral contract. 15. Which of the following is NOT one of the three levels of performance of a contract? (a)Complete or strict performance (b)Technical performance. (c)Substantial performance (d)Interior performance or material breach. 16.It is stated that the terms of a written contract may not be changed by evidence of any prior agreement but may be explained, or supplemented, in the:
()aUniform Commercial Code (UCC). (b)Statute of Frauds. (c)Parol Evidence Rule. (d)English Law. 17. Oral evidence introduced after a contract is signed is legally accepted if it clarifies some point in the: (a)oral agreement. (b)verbal agreement. (c)written agreement. (d)implied agreement. 18. Consistent oral statements may: (a)not be introduced into evidence unless a contract is in writing. (b)be introduced into evidence if a contract is not yet in writing. (c)not be introduced into evidence if a contract is in writing. (d)be introduced into evidence irrespective of whether a contract is in writing or not. 19. The Statute of Frauds only specifies that certain contracts must be in writing to be: )beneficial. )rewarding. )indistinct. )enforceable. 20. The Statute of Frauds applies only to: (a)administrative contracts. (b)executory contracts. (c)business contracts. (d)notarized contracts.
Answers for Self Assessment Questions 1. (c)
2.(d)
3.(d)
4.(a)
5.(c)
6. (c)
7.(b)
8. (d)
9.(a)
10.(c)
11.(b)
12.(a)
13.(d)
14.(c)
15. (d)
16.(a)
17.(c)
18.(c)
19.(b)
20. (d)
Chapter-2
Self Assessment Questions 1. Which of the following statements best describes what the law expects the value of consideration to be? (a)Courts always examine on an objective basis the adequacy of the consideration exchanged. (b)Consideration must always be calculated in terms of its monetary value. (c)The consideration exchanged by the two parties should be roughly equal. (d) Courts as a rule do not assess the adequacy of the consideration exchanged 2. Consideration can be: (a)Money (b)Inconvenience (c)Time (d)Products (e)All of these 3. Which of the following is a correct statement? (a)Consideration needs to be neither adequate or sufficient (b)Consideration needs to be both adequate and sufficient (c)Consideration needs to be adequate, but not sufficient (d)Consideration needs to be sufficient, but not adequate 4. Consideration, an essential element in the formation of a valid contract, may be identified as:
(a) The need for fairness in the contract. (b) The intention of the parties to be legally bound. (c) A balance in the terms of the agreement. (d) The 'bargain' element of a contract. 5. Which of the following is an example of good consideration? (a) Exceeding an existing duty. (b) Part-payment of a debt. (c) Performing an existing duty. (d) Agreeing to pay a tenant for improvements already made to a rented property. 6. What is meant by executory consideration? (a) Consideration which is in the past. (b) Where there is a promise to do something in the future. (c) Where consideration has already been completed. (d) The exchange of consideration. 7. Which of the following statements is correct? (a) Consideration must be of adequate value. (b) Performance of a duty imposed by law is good consideration. (c) Consideration must always be greater than £1. (d) Consideration must be sufficient. It must have some measurable and material value. 8. The three essential characteristics of valid consideration are: (a)accuracy, brevity, and clarity. (b)fulfillment of social, moral and ethical obligations. (c)legality, adequacy, and the possibility of performance. (d)intention, practices, and policies. 9. A valid contract does not exist if the contract is a promise of/to:
(a)payment. (b)provide services. (c)forbearance. (d)perform an illegal act. 10. A contract will not be enforced if it: (a)is impossible to fulfill. (b)is inconvenient to fulfill. (c)is difficult to fulfill. (d)poses unforeseen expenses. 11. The law assumes that, as long as no undue pressure is brought to bear, the parties were: (a)free to reject a proposed unfair contract. (b)not allowed to enter into another contract. (c)bound compulsorily by all the terms of a contracts. (d)free to perform an illegal act. 12. A party who promises to do something that is merely difficult to perform, or poses unforeseen expenses, is: (a)bound by the tort law. (b)bound by the terms of the contract. (c)not bound by the terms of the contract. (d)bound by administrative rules and regulations. 13. The most common form of valid consideration is: (a)the promise of money by one party for the promise of an act by another. (b)the promise of an act by one party for the promise of refraining from trade by the other party. (c)the promise of money by one party for the promise of restraining oneself from competitive trade by another.
(d)the promise of an act by one party in exchange for a different act by another. 14. A promise of an act by one party in exchange for the promise of an act by another is also considered a: (a)void contract. (b)valid offer and acceptance. (c)valid consideration. (d)voidable contract. 15. Which of the following is not needed for an offer to be legally valid? (a)Clearly stated terms (b)Intention to do business (c)Details of how the acceptance is to be communicated (d)Communication of that intention 16. Which of the following is not needed for a legally binding contract to be in force? (a)Intention to create legal relations (b)Consideration (c)Written contract (d)Offer and acceptance 17. An invitation to treat is: (a)An invitation to the other party to make an offer (b)A name for an offer made between two individuals (c)Another name for an offer (d)Another name for acceptance 18. Where there is an anticipatory breach of contract, when is the injured party entitled to sue? (a) Only after a reasonable time. (b) From the date the other party indicates their intention not to complete the contract.
(c) From the date that the other party fails to actually perform their part of the contract. (d) If it is an anticipatory breach of contract the injured party has no right to sue for beach of contract. 19. What is the aim of an award of damages for breach of contract? (a) To punish the party who has broken the contract. (b) To restore the innocent party to the position he was in before the contract was made. (c) To ensure the party who has broken the contract suffers a reasonable penalty. (d) To put the innocent party in the same financial position he would have been in if the contract had been carried out. 20. Which one of the following sentences is correct? (a) If a party has suffered no loss through a breach of contract he will only be entitled to nominal damages. (b) Damages can never be claimed for distress or disappointment. (c) A claimant can claim for all losses that have occurred through breach of contract. (d) A claimant generally has no duty to mitigate his loss.
Answers for Self Assessment Questions 1. (d)
2.(d)
3.(e)
4.(d)
5.(a)
6. (b)
7.(d)
8. (c)
9.(d)
10.(a)
11.(a)
12.(b)
13.(a)
14.(c)
15. (c)
16.(c)
17.(a)
18.(b)
19.(d)
20. (a)
Chapter-3
Self Assessment Questions 1. Which of the following is not one of the channels through which we reveal our inner states? (a)eye contact
(b)posture (c)facial expressions (d)auditory acuity 2 .While driving, some people will express their anger by displaying their hand with the middle finger extended. This gesture is considered to be a(n) _____. (a)cognitive marker (b)emblem (c)cultural marker (d)postural display 3 .The process that people go through to understand the causes behind others' behavior is known as: (a) attribution. (b) cognition. (c)affection. (d)impression formation. 4 .Which one of the following is NOT one of the sources of information we use to infer the cause of someone's behavior, according to Kelley? (a)consistency (b)distinctiveness (c)consensus (d)correspondence inference 5 The tendency to explain others' actions as stemming from dispositional causes even in the presence of clear situational causes is called the: (a)correspondence bias. (b)self-serving bias. (c)actor-observer effect. (d)self-presentation bias.
6. Which of the following is NOT one of the three basic processes of social cognition? (a)encoding (b)categorization (c)attention (d)retrieval 7. In general, we tend to pay more attention to information that is _____ with our expectations. (a)irrelevant (b)inaccurate (c)consistent (d)inconsistent 8 .When an individual makes an optimistic prediction about how long a specific task will take to complete, that person has fallen prey to the: (a)planning fallacy. (b)rational bias. (c)irrational bias. (d)gambler's fallacy. 9 .According to the _____, when two objects touch they pass properties to one another and the effects of the contact may last beyond the original contact situation. (a)law of contagion (b)law of similarity (c)law of continuity (d)proximity 10. Nonverbal communication is best described as: (a)body language. (b)the part of the message not encoded in words.
(c)the facial expressions and tone of voice used while speaking. (d) none of these 11. Verbal and nonverbal messages should match because: (a)verbal messages are often more credible than nonverbal messages. (b)nonverbal messages are usually consciously observed. (c)together they contribute to the total message. (d) all of these 12. Universal nonverbal communication refers to: (a)the rules of behaviour agreed upon within a society. (b)body movements common to humankind such as tears or a smile. (c)the interconnected assumptions, beliefs, values, attitudes, norms and rules shared by a society or group. (d) none of these
13. The part of language associated with how something is said rather than with what is said is called: (a)body language. (b)proximity language. (c)paralanguage. (d) all of these 14. Which of the following is a set of the seven aspects of nonverbal behaviour? (a)Kinesics, universal nonverbal communication, culture, proximity, artefacts and environment. (b)Kinesics, physical characteristics, touching behaviour, paralanguage, proximity, artefacts and environment. (c)Kinesics, physical distractions, psychological characteristics, paralanguage, proximity, artefacts and environment.
(d) none of these 15. Which nonverbal communication role communicates information about our self-concept via artefacts? (a)Self-presentation (b)Office layout (c)Communicating personal attitudes and emotions (d)Choice of clothes 16. Which one of the following items is relatively unimportant in decision making? (a)Accruals and prepayments (b)Net cash flow (c)Relevant costs (d)Opportunity costs 17. Which one of the following statements is incorrect in relation to performance? (a) Entire performance exists when performance exactly matches the requirements laid down in the contract. (b)Late performance will always amount to a breach of contract giving rise to a right to damages. (c)If one party is prevented from completing the contract by some fault of the other party, the cost of the work completed may be claimed. (d)Nothing less than entire performance will be good enough to discharge the contract. 18. Business strategy focuses on: (a)where a firm is going and the scope of its activities. (b)strategies related to functional areas such as Marketing, Production and HRM. (c)how to allocate resources between different parts of the business. (d)how a firm competes within a particular market or industry. 19. Non-verbal communication does not involve: (a) space
(b) gestures. (c) words (d) silence 20. Grooming is a form of non-verbal communication that is: (a) subconscious (b) hierarchical. (c) conscious (d) arbitrary
Answers for Self Assessment Questions 1. (d)
2.(b)
3.(a)
4.(d)
5.(a)
6. (b)
7.(a)
8. (a)
9.(a)
10.(b)
11.(c)
12.(b)
13.(c)
14.(b)
15. (a)
16.(a)
17.(d)
18.(d)
19.(c)
20. (c)
Chapter-4
Self Assessment Questions 1. Which one of the following is not a method by which a contract can be discharged? (a)Agreement. (b)Consideration. (c)Performance. (d)Frustration. 2. Where one party says or implies that they will not perform the contract, before it is due to be performed, this will amount to: (a)A total breach (b)An anticipatory breach
(c)An actual breach (d)A partial breach 3. Which one of the following will not amount to frustration? (a)Foreseeable events. (b)Impossibility. (c)Illegality. (d)Pointlessness. 4. Which one of the following statements is incorrect? (a)It is possible to use contractual terms to exclude frustration by impossibility, pointlessness and illegality. (b)An event will not frustrate a contract if it was due to the fault of one of the parties. (c)An event will not frustrate a contract where it merely renders the contract more onerous. (d)An event will not frustrate a contract if the contract makes special provision for such an event. 5. Which one of the following statements is incorrect? (a)Once a contract has been classified as frustrated it becomes automatically terminated. (b)If a contract has been classified as frustrated it is treated like it never existed. (c)The Law Reform (Frustrated Contracts) Act 1943 details provisions under which parties can recover money from the frustrated contract. (d)The common law on frustration traditionally took the view that any loss resulting from frustration should lie where it fell. 6. An actual breach occurs where one party indicates that they will not be performing as agreed. (a)True (b)False 7. Which one of the following statements is incorrect? (a)Any breach of contract entitles the innocent party to sue for damages. (b)Breach of a warranty entitles the innocent party to terminate the contract.
(c)A serious breach of an innominate term will entitle the innocent party to terminate the contract. (d)Breach of a condition entitles the innocent party to sue for damages and terminate the contract. 8. Which of the following statements describes a novation? (a)An agreement whereby the promisee gives the third party a power of attorney. (b)A contract between the promisee, the promisor and a third party whereby the benefits of the contract would be owed by the promisor to the third party. (c)An agreement that allows a third party to sue in the promisee’s name. (d)none of these 9. Which of the following is a description of discharge of contract by performance? (a)The parties carry out exactly the terms of the contract. (b)An unforeseen event makes performance of the contract impossible. (c)The contract is discharged as a result of bankruptcy of one the parties, material alteration of the contract, merger, the death of either party or the expiry of time. (d)The parties agree to a mutual discharge, a release or waiver, a substituted agreement, or accord and satisfaction. 10. Which of the following is a description of discharge of contract by agreement? (a)An unforeseen event makes performance of the contract impossible. (b)The parties carry out exactly the terms of the contract. (c)The contract is discharged as a result of bankruptcy of one the parties, material alteration of the contract, merger, the death of either party or the expiry of time. (d)The parties agree to a mutual discharge, a release or waiver, a substituted agreement, or accord and satisfaction. 11. Which of the following is a description of discharge of contract by frustration? (a)The contract is discharged as a result of bankruptcy of one the parties, material alteration of the contract, merger, the death of either party or the expiry of time. (b)The parties agree to a mutual discharge, a release or waiver, a substituted agreement, or accord and satisfaction.
(c)The parties carry out exactly the terms of the contract. (d)An unforeseen event makes performance of the contract impossible. 12. Which of the following is a description of discharge of contract by operation of law? (a)The parties carry out exactly the terms of the contract. (b)The contract is discharged as a result of bankruptcy of one the parties, material alteration of the contract, merger, the death of either party or the expiry of time. (c)The parties agree to a mutual discharge, a release or waiver, a substituted agreement, or accord and satisfaction. (d)An unforeseen event makes performance of the contract impossible. 13. A party who has only partially performed their obligations under a contract may still be entitled to payment if: (a)the other party has prevented full performance. (b)there has been a free and willing acceptance of the partial performance by the other party. (c)less than substantial performance has taken place. (d)the contract is not divisible. 14. When one party to a contract performs their obligations and agrees to relieve the other party of its obligations in return for doing something different, the contract is said to be discharged by way of: (a)accord and satisfaction. (b)novation. (c)mutual discharge. (d)waiver. 15. Which of the following is NOT one of the necessary ingredients of frustration? (a)Neither party caused the supervening event. (b)The supervening event has significantly or radically changed the obligations of the parties. (c)It would be unjust to hold the parties to the original contract. (d)The supervening event was provided for in the contract.
16. Which of the following supervening events will NOT result in the discharge of a contract by frustration? (a)Destruction of the subject matter of the contract. (b)An increase in the cost of performance. (c)The death of one of the parties in a contract for personal services. (d)The non-occurrence of an event basic to the contract. 17. A contract which is discharged by frustration: (a)is void ab initio, i.e. from the beginning. (b)is valid and enforceable. (c)is void from the time of the frustrating event. (d)is voidable by the innocent party. 18. Which of the following will NOT result in the discharge of a contract by operation of law? (a)The merger of a simple contract into a formal contract. (b)The bankruptcy of one of the parties. (c)The death of either party in a contract other than a contract for personal services. (d)The making of a material alteration to a written contract by one of the parties. 19. Payment by legal tender is regarded as: (a)Conditional discharge (b)Substituted agreement (c)Waiver (d)Absolute discharge 20. When both parties end a contract, even if they still have obligations to fulfil and they have no intention of entering into a new agreement to replace the old one, the contract is said to be: (a)Discharged by waiver (b)A mutual discharge
(c)Discharged by release (d)A material alteration
Answers for Self Assessment Questions 1. (b)
2.(b)
3.(a)
4.(a)
5.(b)
6. (b)
7.(b)
8. (b)
9.(a)
10.(d)
11.(d)
12.(b)
13.(a)
14.(a)
15. (d)
16.(b)
17.(c)
18.(c)
19.(a)
20. (b)
Chapter-5
Self Assessment Questions 1. “Generally speaking, all contracts must be set out in writing.” This statement is: (a)True (b)False 2. A deed is a document that is required to be “signed, sealed and delivered” by virtue of the Law of property Act 1925 s.73. Is a seal still required for a document to be recognised as a deed? (a)Yes (b)No 3. Contracts governed by the Consumer credit Act 2006 requires certain regulated agreements, such as hire purchase agreements and credit sales agreements are “not properly executed” unless in writing and in the form prescribes by regulation under the Act. Which statement is correct? (a)Such agreements are void (b)Such agreements can be enforced against a debtor by an order of the court. (c)Such agreements are unenforceable (d)Such agreements are voidable
4. A person makes a promise to another whereby the first agrees to meet the liabilities owed by a third party to the second should the third party prove unable to meet those liabilities. Which expression best describes this arrangement? (a)The first person in the transaction is providing a guarantee. (b)The first person in the transaction is providing a letter of comfort. 5. “A promise by a person to pay a debt is made to a third party debtor. The promise has to be evidenced in writing to comply with the Statute of Frauds 1677 s.4.” This statement is: (a)True (b)False 6. If a guarantor assumes primary responsibility for the debts of a third party, this is: (a)An indemnity. (b)A guarantee. (c) liabilities (d)none of these 7. Which of the following relationships may give rise to vicarious liability? (a)Priests and members of the congregation. (b)Vehicle owners and delegated drivers. (c)Employer and employee. (d) (b)&(c) 8. Which of the following are tests that can be used to distinguish an employee from an independent contractor? (a)The economic reality test (b)The control test. (c). (a)&(b) (d)The previous course of dealings test. 9. Which of the following is a true statement with regards to a contract for services?
(a)A contract for services is the formal phrase used to describe the contract of employment. (b)A contract for services is a phrase used to describe the employment status of people, such as IT support workers, who provide a service on behalf of their employer. (c)A contract for services is used in relation to an independent contractor. (d)A contract for services is only used to describe domestic arrangements, such as the hire of a gardener or window cleaner in a private house. 10. A delivery driver deviates from his route to visit a friend in hospital. What phrase is commonly used in tort to describe what the driver has done? (a)An unauthorised detour. (b)A jaunt of no value to the employer. (c)A frolic of his own. (d)A journey on his own account. 11. What is an indemnity? (a)An offer of payment that is made by the defendant in an attempt to persuade the claimant to settle out-of-court. (b)A finding at court that both parties were equally to blame for the tort that occurred. (c)The recovery of the full cost of damages paid by the defendant. (d)A promise not to take legal action contained in a deed. 12. Which of the following fall within the 'course of employment'? (a)Acts expressly authorised by the employer. (b)Acts that amount to a breach of the criminal law if they are closely associated with the work that the employee is engaged to perform. (c)Acts that are expressly prohibited by the employer but concern the manner in which the work is carried out. (d)all of these 13. How can a guarantor defend an action by a creditor to enforce the guarantee against her? (a)By pleading the right of subrogation.
(b)By pleading the Statute of Frauds. (c)By arguing that the debtor was a minor when he incurred the indebtedness. (d)By arguing either 1 or 2. 14 . What is the clearest difference between a contract of indemnity and a guarantee? (a)A guarantor is only liable to pay once the debtor defaults while an indemnifier is primarily liable. (b)Guarantees are subject to legislation while indemnities are not. (c)An indemnity must be in writing; a guarantee need not be. (d)An indemnifier is only obligated to pay once the debtor defaults while a guarantor is primarily liable. 15. In general, all of the following are requirements for a bailment, EXCEPT that the: (a)bailor must be in possession of goods. (b)bailee must intend to possess goods. (c)bailee must return identical goods. (d)actual ownership of goods is necessary. 16 .A guarantee is: (a)An indemnity (b)A promise to pay a creditor. (c)A promise to pay a creditor if the debtor defaults. (d)A promise to a debtor to assist in the event of default. 17. A bailment is a special kind of contract that is widely used in business and in: (a)personal affairs. (b)cultural activities. (c)academic research. (d)charitable institutions.
18. A transaction in which an owner of a tangible personal property transfers the property to another party while still retaining ownership of such property is known as a: (a)bailment. (b)pledge. (c)hypothecation. (d)lease. 19. A bailment allows an owner of a personal property to transfer possession of it to another individual for any one of the following purposes, EXCEPT: (a)sale. (b)transportation. (c)storage. (d)lease. 20. An agreement reached between a bailor and a bailee is a: (a)mortgage. (b)bailout. (c)bailment. (d)codicil.
Answers for Self Assessment Questions 1. (b)
2.(b)
3.(b)
4.(a)
5.(b)
6. (a)
7.(d)
8. (c)
9.(c)
10.(c)
11.(c)
12.(d)
13.(b)
14.(a)
15. (d)
16.(c)
Chapter-6
Self Assessment Questions
17.(a)
18.(a)
19.(d)
20. (c)
1. Which one of the following statements is incorrect? (a) An agency relationship may be created through necessity. (b) An agency relationship may be created through estoppel. (c) All agents are entitled to be paid for their services. (d) An agent creates a legal relationship between a third party and a principal. 2. An agency relationship which is made retrospectively is known as an agency by: (a) Estoppel (b) Ratification (c) Necessity (d) Commerce 3. When does apparent (ostensible) authority of an agent arise? (a) When the agent acts with the usual authority of his job. (b) When the principal gives the agent implied authority to act. (c) When the agent has actual authority to act. (d) When the principal represents to a third party that an agent has authority to act when in fact he does not. 4. Which one of the following is not a duty of an agent? (a) Duty to exercise care and skill. (b) Duty to take a commission. (c) Duty to account. (d) Duty to avoid a conflict of interest. 5. What is an undisclosed agency? (a) Where a third party is not informed of the existence of the principal and believes the agent is acting on his own behalf. (b) Where the agent indicates through conduct he is acting as an agent.
(c) Where the principal is not in existence. (d) Where the third party knows there is a principal but does not know his name. 6. Which of the following statements is incorrect? (a) An agency may be terminated by death of either party. (b) An agency may be terminated by express agreement. (c) In some situations it is not possible to terminate an agency agreement. (d) Mental incapacity of an agent will terminate the agency relationship. 7. It is often necessary or desirable for a person or firm to be represented by another in business or personal dealings with third parties. This relationship is called a(n): (a)employer-employee relationship. (b)principal-agency relationship. (c)title-agency relationship. (d)third party-agent relationship. 8. Individuals who lack the capacity to enter into contracts on their own are: (a)the physically disabled. (b)senior citizens. (c)entrepreneurs. (d)minors. 9. If minors are capable of properly carrying out the duties of an agency relationship: (a)then they may be considered to represent other persons as agents. (b)they may still not be eligible to enter into a contract with an agent. (c)then may still not be considered to represent other persons as agents. (d)then they are exempted from representing other persons as agents. 10. A person who is delegated the authority to act only in a particular kind of transaction, under definite instructions, and with specific limits on the scope of his or her authority, is called a:
(a)general agent. (b)hired agent. (c)special agent. (d)super agent. 11. The legal document formally creating an agency is called a: (a)general contract. (b)power of attorney. (c)special delegation. (d)collateral power. 12. Which legal term is used for a person who is appointed as an agent? (a)Special Attorney (b)Attorney in Law (c)Attorney in Fact (d)Apparent Attorney 13. A principal cannot accept the benefits of a transaction and refuse to accept the: (a)obligations. (b)parallel benefits. (c)apparent benefits. (d)representation. 14. In an agency by agreement, "authorization" occurs: (a)after the fact occurs. (b)before the fact occurs. (c)during the occurrence of the fact. (d)after the agency becomes defunct. 15. An agent may perform only those acts that have been authorized by the principal or:
(a)the spouse of the principal. (b)his or her employer. (c)the court. (d)the government. 16. The authority that has actually been given by the principal, either orally or in writing, is known as: (a)forbidden authority. (b)foreseen authority. (c)implied authority. (d)express authority. 17. An agency agreement may be either written or oral. (a)True (b)False 18. An agency relationship arises when the principal acts for the benefit of and under the direction of the agent. (a)True (b)False 19. Which of the following agency is irrevocable? (a) Agency for a fixed period (b) Agency for a single transaction. (c) Agency coupled with an interest (d) Continuing agency 20. What is the name given to an agency which cannot be terminated? (a) Revocable agency. (b) Irrevocable agency.
(c) Agency for a single transaction. (d) Agency created in necessity.
Answers for Self Assessment Questions 1. (c)
2.(b)
3.(d)
4.(b)
5.(a)
6. (a)
7.(b)
8. (d)
9.(a)
10.(c)
11.(b)
12.(c)
13.(a)
14.(b)
15. (c)
16.(d)
17.(a)
18.(b)
19.(c)
20. (b)
Chapter-7
Self Assessment Questions 1. A partnership firm comes into existence by agreement between all the partners, and such agreement should be (a)Express agreement only. (b)Implied agreement only. (c)Either express or implied. (d)Registered 2. A partnership deed usually contain the particulars relating to (a)Name of firm and partners. (b)Nature of business and duration of firm. (c)Capital contribution, profit/loss sharing ration and other agreed terms. (d)All of these 3. A partner is the agent of the firm for the business of the firm (a)True, as the mutual agency relationship is the foundation of the law of partnership. (b)False, as in that case a firm is reduced to the status of a mere agency. 4. Which of the following statement is incorrect?
(a)A person who receives the profits is always a partner. (b)A person who receives the profits is not necessarily a partner. (c)The true test of partnership is the mutual agency i.e., agency relationship among partners. (d)The partnership comes into existence only an agreement. 5. Which of the following statement about a minor partner is incorrect? (a)A minor can be admitted only to the benefits of an existing firm. (b)A minor cannot be admitted to the benefits of a new firm taking minor as partner. (c)A minor cannot be a full-fledged partner in a firm. (d)A minor can be a full-fledged partner in a firm. 6. A partnership where its duration is fixed and cannot be dissolved by any partner at his will, is known as (a)Particular partnership (b)General partnership (c)Partnership for fixed period (d)Partnership at will. 7. Partnership is the relation between two or more persons: (a) Who are sharing the profits & losses equally of a business carried on by all or any of them acting for all (b) Who have agreed to share the profits of a business carried on by all. (c) Who have agreed to share the profits of a business carried on by any of them acting for all (d) None of these 8. A partnership can be formed: (a) only with a written agreement (b) only with an oral agreement (c) only with an express agreement
(d) none of these 9. A partnership cannot be formed: (a) for carrying on a business (b) for carrying on a profession (c) for carrying on charitable activities (d) none of these 10. For a valid partnership, there must be: (a) Sharing of profits (b) Sharing of losses (c) Sharing of profits & losses (d) none of these 11. Agreement to share profits ………………….. (a) Implies an agreement to share losses (b) Does not necessarily mean an agreement to share losses (c) Must be coupled with an agreement to share losses (d) Is same as agreement to share losses 12. Business of the firm must be carried on by: (a) majority of the partner only (b) all the partners (c) one of the partners only (d) none of these 13. In a partnership firm, the difference of opinion over some ‘fundamental matter’ can be settled (a)All the partners (b)Majority of partners (c)Senior partners
(d)Managing partner 14. Which of the following is an absolute duty and cannot be excluded by an agreement to the contrary? (a)Duty to share losses equally. (b)Duty to indemnify for loss caused by partner’s fraud. (c)Duty to indemnify for loss caused by negligence. (d)Duty to account for profits of a competing business. 15. It is duty of every partner to act within the scope of (a)Actual authority (b)Implied authority (c)Both (a) and (b) (d)none of these 16. Which of the following acts are within the implied authority of a partner? (a)To engage a lawyer and defend the action brought against the firm. (b)To purchase goods of the kind used in firm’s business. (c)To engage servants to perform the business of the firm. (d)All of these 17. Which of the following is correct? (a) A partnership firm has a separate legal entity apart from partners (b) Two firms can form a new partnership (c) The partners of individual firm can form a partnership (d) None of these 18. Which of the following is not correct: (a) Partner of firm cannot enter into a contract with the partnership firm. (b) A member of a company can enter into a contract with the company.
(c) Partner of a firm can enter into a contract with the partnership firm. (d) All of the abose. 19. The real test of partnership is: (a) Business (b) Sharing of Profits (c) Agreement (d) Business to be carried on by all or any of them acting for all. 20. Mutual Agency is: (a) Prima facie evidence of partnership (b) Conclusive evidence of partnership (c) Test of partnership (d) none of these
Answers for Self Assessment Questions 1. (c)
2.(d)
3.(a)
4.(a)
5.(d)
6. (c)
7.(d)
8. (d)
9.(c)
10.(a)
11.(b)
12.(d)
13.(a)
14.(b)
15. (c)
16.(d)
17.(c)
18.(a)
19.(d)
Chapter-8
Self Assessment Questions I. The Sale of Goods Act, 1930 came into force on (a) 1st day of July 1930 (b) 1st day of August 1930. (c) 1st day of January 1930.
20. (b)
(d) 1st day of September 1930. 2. Which law governs the sale of movable property in India? (a) Transfer of Property Act, 1872. (b) Sale of Goods Act, 1930. (c) Indian Contract Act, 1872. (d) all of the above. 3. The Sale of Goods Act, 1930 deals with (a) bailment. (b) hire-purchase sales. (c) gift. (d) sale of goods in general. 4. The Sale of Goods Acts extends to (a) whole of India. (b) only to the state of Jammu and Kashmir. (c) few states as notified by the government. (d) whole of India except the slate of Jammu and Kashmir. 5. The Sale of Goods Act, 1930 deals with (a) sale of immovable property. (b) pledge. (c) sale of movable property (d) mortgages and pledge. 6. The Sale of Goods Acts applies to contracts of (a) sale of goods. (b) pledge of goods. (c) sale of services.
(d) hire-purchase. 7. A contract of sale may be (a) oral. (b) written (c) always expressed (d) either (a) or (b) 8. According to the Sale of Goods Act, 1930, 'Buyer' means a person who (a) buys goods. (b) agrees to buy goods (c) either (a) or (b). (d) neither (a) nor (b). 9. Delivery of goods under the Sale of Goods Act means (a) voluntary transfer of possession. (b) voluntary transfer of ownership. (c) involuntary transfer of possession. (d) involuntary transfer of ownership. 10. 'Delivery' within the meaning of the Sale of Goods Act can be (a) symbolic. (b) actual. (c) constructive (d) either (a) or (b) or (c). 11. A agrees to deliver 1 kg of wheat to B in exchange of 2 kg of rice. It is a/an (a) contract of sale. (b) sale on approval. (c) agreement to sale
(d) barter 12. A agrees to deliver 1 kg of wheat to B in exchange of 500 gm of rice and 500 gm of sugar. It is a/an (a) contract of sale. (b) sale on approval (c) agreement to sel e (d) barter 13. A agrees to deliver 1 kg of wheat to Bin exchange of 500 gm of rice and Rs 50. It is (a) contract of sale (b) sale on approval (c) hire purchase (d) barter. 14. In a contract of sale price (a) is paid in money. (b) is paid by kind (c) may be paid in kind. (d) in any manner as agreed upon. 15. Which is an example of Symbolic Delivery of Goods. (a) Abandonment by a person who is in possession of the goods. (b) Transfer of a bill of lading. (c) Physical delivery of goods. (d) All of the above. 16. Which is an example of Symbolic Delivery of Goods. (a) Handover the bags after shopping. (b) Hand over the key of car.
(c) Both of the above. (d) None of the above. 17. All essentials of valid contract is applicable to the Sale of Goods Act, 1930. (a) True (b) Partly true (c) False (d) None of the above 18. 'The term 'Goods' under the Sale of Goods Act, 1930 includes (b) immovable property (b) movable property (c) both (a) and (b). (d) marketable property. 19. Which of the following are not included in the term 'Goods' under the Sale of Goods Act. (a) Stock and shares. (b) Actionable claims. (c) Growing crops, grass etc. (d) Personal use property. 20. 'Goods' under the Sale of Goods Act, includes (a) money. (b) actionable claim. (c) both (a) and (b) (d) neither (a) nor (b).
Answers for Self Assessment Questions
1. (a)
2.(b)
3.(d)
4.(d)
5.(c)
6. (a)
7.(d)
8. (c)
9.(b)
10.(d)
11.(d)
12.(d)
13.(a)
14.(a)
15. (b)
16.(b)
17.(a)
18.(b)
19.(b)
20. (d)
Chapter-9
Self Assessment Questions 1. Which of the following takes place in the foreign exchange markets (forex or FX)? (a)People from different countries meet to exchange views (b)Shares, bonds and global depositary receipts are traded (c)One currency is exchanged for another (d)Illegal immigrants exchange passports 2. Which is a correct description? (a)The forward foreign exchange market is one in which a deal is arranged to exchange currencies at some future date at a price agreed now (b)The spot market is one in which transactions take place and delivery (fulfilment of the agreement) always occurs within minutes (c)Foreign exchange transaction risk in overseas trading relates to the problems of counterparties failing to fulfil obligations (d)Economic risk in the exchange rate risk context is related to the problems of government changing the macroeconomic environment (inflation, GDP growth, etc) 3. Which of the following statements most accurately describes translation risk? (a)A company's value may decline as a result of forex movements causing a loss of competitive strength (b)Loss may result from foreign exchange movement due to the action of governments (c)Financial data denominated in one currency are then expressed in terms of another currency; exchange rate movements can distort comparability
(d)The risk that transactions already entered into in a foreign currency, or for which the firm is likely to have a commitment, will have a variable value in the home currency because of exchange rate movements 4. The purchasing power parity theory of exchange rate determination is best described by which of the following definitions? (a)Exchange rates will be in equilibrium when their domestic purchasing powers at that exchange rate are equivalent (b)If purchasing power parity is achieved between two countries, neither has a comparative advantage (c)The equalisation of currency value such that one unit of the first currency buys one unit of the second currency (d)An exchange rate move so that all citizens of a country have the same purchasing power 5. The expectation theory can be described by which of the following statements? (a)The spot rate is expected to remain constant for the foreseeable future (b)The current forward exchange rate is an unbiased predictor of the spot rate at that point in the future (c)The spot rate will rise to equal the future rate when the futures expiry date approaches (d)The current spot rate is an unbiased predictor of the spot rate in the future 6. Which of the following are true? (a)In the foreign exchange market over US$10,000 billion is traded on a typical day (b)Exchange rates are quoted with a bid and offer rate (c)In the spot market trades are settled in two hours (d)both (b)&(c) A money market hedge requires the purchase of money market financial instruments 7. Which types of market participants can be termed as the most important participant in foreign exchange market? (a) Retail customers (b) Commercial banks
(c) Foreign exchange dealers (d) Central banks 8. Which of the following is not a characteristic of speculation? (a) profit motive (b) exchange rate fluctuation (c) hedging (d) risk taking 9. Arbitrageurs in foreign exchange markets: (a)attempt to make profits by outguessing the market. (b)need foreign exchange in order to buy foreign goods. (c)make their profits through the spread between bid and offer rates of exchange. (d)take advantage of the small inconsistencies that develop between markets. 10. In a deep market: (a)there are few sudden large movements of the exchange rate. (b)there is no scope for arbitrage. (c)speculators are almost certain to lose. (d)there are many sudden large movements of the exchange rate. 11. Economics teaches that: (a)foreign exchange markets are always efficient. (b)exchange rates should be determined by the market fundamentals. (c)exchange rates should be determined by transactions that are included in the current account of the balance of payments. (d)exchange rates move rapidly to return to equilibrium positions. 12. It is very difficult to interpret news in foreign exchange markets because: (a)very little information is publicly available.
(b)most of the news is foreign. (c)it is difficult to know which news is relevant to future exchange rates. (d)it is difficult to know whether the news has been obtained legally. 13. Overshooting models of the exchange rate are an attempt to explain: (a)why the foreign exchange market is never in equilibrium. (b)why forward rates of exchange are not good predictors of future spot rates of exchange. (c)why purchasing power parity plays no role in determining the value of a currency. (d)why exchange rates are so volatile. 14. Which of the following is an example of foreign exchange? (a)Exchange of claims denominated in another currency. (b)Exchange of bank deposits. (c)Exchange of cash issued by a foreign central bank. (d)All of these. 15. The vast majority of large-scale foreign exchange transactions in the US are: (a)done through Morgan-Chase and Deutsche Bank of America. (b)done through foreign exchange brokers. (c)done through Interbank. (d)done through the Chicago Mercantile Exchange 16. The currency used to buy imported goods is (a) the currency of a third country (b) the buyer's home currency. (c) special drawing rights. (d) the seller's home currency. 17. If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with
(a) dollars. (b) yuan, the Chinese currency. c) euros, or any other third currency. (d) international monetary credits. 18. Which of the following statements is correct? I. The exchange rate is a price. II. The exchange rate is different from other prices because it is NOT determined by supply and demand. (a) only I (b) only II (c) I and II (d) neither I nor II 19. When the value of one currency falls relative to another currency, the exchange rate for the first currency has (a) revalued. (b) depreciated. (c) appreciated. (d) demanded. 20. If the exchange rate falls, then the expected profit from holding the currency (a) increases. (b) decreases. (c) does not change. (d) can either increase or decrease.
Answers for Self Assessment Questions
1. (c)
2.(a)
3.(c)
4.(a)
5.(d)
6. (d)
7.(d)
8. (c)
9.(d)
10.(d)
11.(b)
12.(c)
13.(d)
14.(d)
15. (c)
16.(d)
17.(b)
18.(a)
19.(b)
20. (a)
Chapter-10
Self Assessment Questions 1. In finance we refer to the market for short-term government and corporate debt securities as the market. (a)Capital (b)primary (c)secondary (d)Money 2. Which of the following would generally have unlimited liability? (a)A limited partner in a partnership. (b)A shareholder in a corporation. (c)The owner of a sole proprietorship. (d)A member in a limited liability company (LLC). 3. The average tax rate is equal to the (a)total tax liability divided by taxable income (b)rate that will be paid on the next dollar of taxable income (c)median marginal tax rate (d)percentage increase in taxable income from the previous period 4. In finance we refer to the market where existing securities are bought and sold as the (a)money (b)capital
market.
(c)primary (d)secondary 5. Which of the following is not an example of a financial intermediary? (a)Wisconsin S&L, a savings and loan association. (b)Strong Capital Appreciation, a mutual fund. (c)Microsoft Corporation, a software firm. (d)College Credit, a credit union. 6. How are funds allocated efficiently in a market economy? (a)The economic unit that considers itself most in need of funds receives funds first followed by those who are less in need. (b)Receipt of funds is rotated over time so that each economic unit can receive them in turn. (c)The largest economic units receive the funds first followed by smaller firms if sufficient funds are available. (d)The economic unit that is willing to pay the highest expected return for a given risk level receives the funds. 7. What mechanism ensures that large firms who benefit from tax laws pay some minimum amount of tax? (a)Annual minimum tax. (b)Alternative minimum tax. (c)Minimum tax law. (d)Corpulent minimum tax. 8. A major disadvantage of the corporate form of organization is the (a)double taxation of dividends (b)inability of the firm to raise large sums of additional capital (c)limited liability of shareholders (d)limited life of the corporate form
9. Which of the following examples would be deductible as an expense on the corporation's income statement? (a)Interest paid on outstanding bonds. (b)Cash dividends paid on outstanding common stock. (c)Cash dividends paid on outstanding preferred stock. (d)All of these. 10. In finance we refer to the market where new securities are bought and sold for the first time as the
market.
(a)money (b)capital (c)primary (d)secondary 11. Which of the following statements is correct for a sole proprietorship? (a)The sole proprietor has limited liability. (b)The sole proprietor can easily dispose of their ownership position relative to a shareholder in a corporation. (c)The sole proprietorship can be created more quickly than a corporation. (d)The owner of a sole proprietorship faces double taxation unlike the partners in a partnership. 12. What is potentially the biggest advantage of a small partnership over a sole proprietorship? (a)Unlimited liability. (b)Single tax filing. (c)Difficult ownership resale. (d)Raising capital. 13. Which of the following is an advantage of a corporation that is not an advantage as a limited partner in a partnership? (a)Limited liability.
(b)Easy transfer of ownership position. (c)Double taxation. (d)All of the above are advantages that the corporation has over the limited partner. 14. All of the following are true of a partnership except
.
(a)there may be 100 partners (b)the formation requires no written agreement (c)it must be a business for profit (d)all of the above statements are true 15. Advantages of forming a partnership over a proprietorship include all of the following except (a)a partnership has an income tax advantage over a proprietorship (b)the business can be expanded by adding more partners (c)a partnership can raise more capital (d)a partnership brings together the expertise of more than one person 16. All of the following items should be addressed in a written partnership agreement except for the (a)procedure for liquidating the partnership (b)procedure for adding new partners and for settling with a partner who withdraws from the business (c)method of sharing profits and losses among the partners (d)all of the above should be addressed in a written partnership agreement 17. All of the following statements are true regarding a partnership except (a)each partner's liability is limited to the amount he or she contributed to the partnership (b)a new partnership agreement is required whenever a new partner enters or leaves the partnership (c)mutual agency creates personal obligations for each partner (d)partners pay personal income tax on their share of the partnership's income 18. Which of the following is one of the steps required for public relations to achieve its goals?
(a)define, identify, and evaluate publics (b)decide and design strategies and policies (c)implement, or carry out, plans (d)all of these 19. Specific groups of people who are the targets of services from public relations professionals are called (a)practitioners. (b)publics. (c)buyers. (d)victims. 20. Which of the following is a quality enjoyed by a form of enterprise called a partnership? (a)The owners of such enterprises do not need to publish their accounts. (b)The action of one partner is not binding on another. (c)The owners are not jointly liable for the repayment of the debts of the partnership. (d)Shares can be issued to the general public.
Answers for Self Assessment Questions 1. (d)
2.(c)
3.(a)
4.(d)
5.(c)
6. (d)
7.(b)
8. (a)
9.(a)
10.(c)
11.(c)
12.(d)
13.(b)
14.(d)
15. (a)
16.(d)
17.(a)
18.(d)
19.(c)
20. (a)
Chapter-11
Self Assessment Questions 1. The act of contravening the object clause is called as: (a) Intra vires act.
(b) Ultra vires act. (c) void act. (d) actus reus. 2. How many registered offices can a company have ? (a) Two. (b) Three. (c) one office in each state. (d) One office totally. 3. Which act regulates the name of the company? (a) Essential commodities act. (b) Indian contract act. (c) Trade marks act. (d) Companies act. 4. What is the minimum number of persons who must subscribe to the memorandum of association? (a) 2 in case of public co and 7 in case of private. (b) 2 in case of private co and 7 in case of public ltd. (c) 1 in case of both private and public ltd. (d) 7 in case of both public ltd and in case of private. 5. The minimum capital that a private limited company needs to commence business is: (a) 5 lacs. (b) 4 lacs. (c) 1 lac. (d) 10 lacs. 6. Filing and registration of documents is a statutory requirement under the Companies Act, 1956. (a)True (b)False
7. A company limited by guarantee must have a share capital. (a)True (b)False 8. Before getting the memorandum and articles printed, it is advisable to have their drafts vetted by an attorney to save time, money and effort. (a)True (b)False 9. What document issued by a limited company defines its relationship with the outside world? (a)Articles of Association. (b)Balance Sheet. (c)Memorandum of Association. (d)Shareholder Certificate. 10. Which two of the following are often said to be disadvantages for a sole trader? (a)Existence of a principal-agent problem. (b)Unlimited liability. (c)Lack of capital limiting growth. (d)both (a)&(b) 11. Which two of the following are often said to be advantages for a public limited company (plc)? (a)Ability to grow in size and benefit from economies of scale. (b)Separation between ownership and control. (c). Limited liability. (d) both (a)&(c) 12. The tendency for managers to pursue objectives that are different from shareholders is sometimes called the: (a)stakeholder approach.
(b)principal-agent solution. (c)joining of ownership and control. (d)principal-agent problem. 13. Persons who take the procedural steps to set up a company and who make business preparations for the company are known as: (a) Directors. (b) Shareholders. (c) Registrars. (d) Promoters. 14. Which of the following statements relating to debentures is incorrect? (a) Debenture stock is transferable. (b) A company may not purchase its own debentures. (c) A debenture holder is a creditor of the company. (d) A debenture is the written document issued by a company setting out the terms of a loan. 15. Which one of the following is not a right of a shareholder? (a) To receive a dividend declared by the company (b) To attend and vote a meetings (c) To receive the company's accounts (d) To manage company affairs. 16. Shares issues without any special rights attached to them are known as: (a) Ordinary shares. (b) Preference shares. (c) Treasury shares. (d) Capital shares. 17. What are redeemable shares?
(a) Shares that cannot be transferred on the stock market. (b) Shares kept by a company to be sold at a later date. (c) Shares which when issued carry the right by the company to buy them back. (d) Shares that carry rights in preference to other shares. 18. How is delegated legislation controlled? (a)There is no control over delegated legislation. (b)Parliamentary scrutiny and judicial review. (c)Judicial review. (d)Appeal to the European Court. 19. Provide a literal translation of the phrase "ultra vires". (a)Beyond reason. (b)The colour of the paper used on the writ. (c)Untouchable. (d)Beyond the powers. (e)Legal objections. Strong men. 20. When a minister acts beyond his or her power granted by statute this is referred to as? (a)ultra veritas (b)ultra vino (c)ultra vires (d)ultra pax
Answers for Self Assessment Questions 1. (b)
2.(d)
3.(c)
4.(b)
5.(c)
6. (b)
7.(b)
8. (b)
9.(c)
15. (d)
10.(d) 16.(a)
11.(d) 17.(c)
12.(d) 18.(b)
13.(b) 19.(d)
Chapter-12
Self Assessment Questions 1. The term company is defined under which sec of the Act? (a) Sec 3 (1) (b) Sec 4 (2) (c) Sec 2 (4) (d) Sec 1 (3) 2. Property of the company belongs to (a) Company (b) Share holders (c) Members (d) Promoters 3. Which company shares can be freely transferable (a) Private Company ( b) Public Company (c) Both (a) & (b) (d) None of the above 4. The amount of capital that a company can issue at par value is called (a) Authorised capital (b) Share premium (c) Issued capital
14.(b) 20. (c)
(d) Fixed capital 5. Cash loaned to a company is called (a) Dividends (b) Debentures (c) Shares (d) Reserves 6. The appropriation account is also called (a) Statement of changes in owner’s equity (b)Balance sheet (c)Cash Flow statement (d)Trading and Profit and Loss account 7. The share of profit a shareholder will receive is called (a) dividend (b) surplus (c) net profit (d) retained profit 8. The owners of a co-operative business are called (a) members (b) shareholders (c) sole proprietor (d) partners 9. "Journals" or "logs" are a variation on member summarization. This process enables the members to see (a)inconsistencies (b)progress
in their reactions to personal issues.
(c)failures (d)deeper feelings 10.
is "when someone hurts another, or is hurt by someone," and does not resolve the issue
prior to termination in group. (a)Unfinished business (b)Countertransference (c)Transference (d)Sublimation 11. When a person alleges that they have been constructively dismissed it is: (a)Necessary to show that the employer intended to repudiate the contract (b)Unnecessary to show that the employer intended to repudiate the contract (c)Necessary to show they were in a particularly vulnerable position (d)Necessary to show that the employer had forced at least one other employee out of a job 12. Re-employment can be ordered by an employment tribunal only if: (a)The employee requests it? (b)Both parties want it? (c)The employer requests it? (d)The reason for dismissal was automatically unfair? 13. The basic award of compensation for unfair dismissal is normally calculated in the same way as: (a)Awards in discrimination cases? (b)An additional award for not re-employing? (c)A redundancy payment? (d)A compensatory award? 14. The purpose of a compensatory award is to: (a)Reflect the degree of unfairness involved in the dismissal.
(b)Punish the employer? (c)Reward the employee for winning the case? (d)Reimburse the employee for losses suffered? 15. When must a claim for unfair dismissal normally arrive at an employment tribunal? (a)Within 6 months of the effective date of termination? (b)Within 3 weeks of the effective date of termination? (c)Within 3 months of the effective date of termination? (d)Within 1 month of the effective date of termination? 16. In order to avoid making a redundancy payment, what must an employer prove in relation to offers of alternative employment? (a)Only that the offer was made (b)Only that the offer was suitable (c)Both the suitability of the offer and the unreasonableness of the employee’s refusal (c)Only that the refusal was unreasonable 17. A statutory redundancy payment is calculated on the basis of: (a)Age, length of service and pay? (b)Age and pay? (c)Length of service and pay? (d)Age and length of service? 18. What is the minimum period of notice that an employee is entitled to after 2 years’ service? (a)Four weeks (b)One week (c)Two months (d)Two weeks 19. The allotment must be made within a reasonable period of time.
(a) true (b)false 20. The equity shares are those, which are not preference shares. (a) true (b)false
Answers for Self Assessment Questions 1. (a)
2.(a)
3.(a)
4.(a)
5.(b)
6. (a)
7.(a)
8. (a)
9.(a)
10.(a)
11.(b)
12.(c)
13.(c)
14.(d)
15. (c)
16.(c)
17.(a)
18.(d)
19.(a)
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Chapter-13
Self Assessment Questions 1. What does social psychology study? (a)Social psychology studies humans rather than animals. (b)Social psychology studies the building blocks of language - i.e. words. (c)Social psychology studies what happens in the real world rather than mental events. (d)Social psychology studies observable behaviour and some processes that can be inferred from behaviour, e.g. attitudes. 2. Consider the following statements about a scientific hypothesis. Which ONE of the following is NOT true? (a)If a scientist believes that a certain hypothesis is true then an experiment to test it would be unethical. (b)A hypothesis is a formal speculation about the causes of a certain behaviour or an event. (c)A hypothesis is stated in a way that allows it to be empirically falsified.
(d)A hypothesis must be stated in such a way to test whether it is true. 3. How might archival research be useful in social psychology? (a)Archival research is useful when large-scale phenomena occur frequently and are removed in time. (b)Archival research is useful when the data analysed are highly reliable. (c)Archival research is useful when it is based on a series of well-planned experiments. (d)Archival research is useful when a researcher rejects the use of experiments. 4. What is the statistic called the t-test used for? (a)It correlates one set of scores, pair-wise, with another set of scores. (b)It is used to analyse qualitative data. (c)It estimates whether there is a significant difference between two sets of scores. (d)It compares two sets of scores that have been ranked. 5. The procedure involved in building a theory is: (a) On the basis of the existing evidence, a theory that reflects this evidence is proposed.. (b) These predictions, known as hypotheses, are then tested by the actual research. (c) If results are consistent with the theory, confidence in its accuracy is increased. If they are not, the theory is modified and further tests are conducted.. (d)All of these 6. What is a major argument underlying evolutionary social psychology? (a)It argues that human and animal behaviour are qualitatively different. (b)It argues that social instincts are based on myth. Behaviour is actually learned. (c)It argues that living things were created by a superior being. (d)It argues that most, perhaps all, social behaviour is genetically determined. 7. What does the research method known as 'deconstruction' refer to? (a)It refers to the simplest possible form of the experimental analysis of behaviour.
(b)It refers to the non-critical acceptance of scientific method as the only means of gaining knowledge. (c)It refers to the idea that social processes should be so defined that they can be measured. (d)It refers to an emphasis on in-depth subjective analyses that people make quite spontaneously. 8. How would you compare an interpersonal and an ideological level of explanation of social behaviour? (a)An interpersonal form of explanation operates at a much lower level than an ideological one. (b)They both analyse inter-individual interaction in terms of people's social position. (c)They both analyse psychological processes in terms of how individuals organise their experience. (d)An ideological form of explanation operates at a much lower level than an interpersonal one. 9. Social psychology is defined as: (a)the field that seeks to understand the nature and causes of individual behavior. (b)the scientific field that seeks to understand the nature and causes of individual behavior and thought in social situations. (c)the area of psychology that seeks to understand the nature and causes of group behavior. (d)the area of psychology that seeks to understand the nature of social trends. 10 .The four core values that a field must adopt in order to be considered scientific are: (a)accuracy, objectivity, skepticism, and open-mindedness. (b)objectivity, training, skepticism, and external validity. (c)accuracy, creativity, internal validity, and objectivity. (d)intuition, objectivity, accuracy, and open-mindedness. 11. A major difference between social psychology and sociology is that social psychology focuses on: (a)common behavior. (b)societal behavior. (c)individual behavior. (d)group behavior.
12. The memories you have of an event and the inferences you've made about the event can influence your interpretation of this event. Such information illustrates the importance of the role of: (a)cultural context. (b)cognitive processes. (c)individualistic processes. (d)social processes. 13. The relationship between temperature and aggression illustrates the impact of _____ on individual behavior. (a)social processes (b)cultural context (c)cognitive processes (d)environmental variables 14. One of the major themes associated with social psychology today is the emphasis on: (a)affective processes. (b)political processes. (c)sophisticated technology. (d)application of social knowledge. 15. In general, research participants tend to view temporary deception (a)quite negatively. (b)with great intrigue. (c)with much disgust. (d)without much negativity. 16. The psychological study of legal issues is known as: (a)industrial psychology. (b)law psychology.
(c)sociolegal psychology. (d)forensic psychology. 17. The single most important reason that innocent defendants are wrongly convicted is: (a)inaccurate eyewitness testimony. (b)inadequate collection of witnesses. (c)emotional confessions. (d)convoluted legal presentations. 18. The definition of
is that it is the study of the psychological processes that affect the
development, prevention, and treatment of physical illnesses. (a)hospital psychology (b)forensic psychology (c)health psychology (d)medical psychology 19. Naturalistic observation is the technique of observing, behavior as it occurs spontaneously, in natural settings. (a)true (b)false 20. The goal of the descriptive research method is to portray what already exists in a group or population (a)true (b)false
Answers for Self Assessment Questions 1. (d)
2.(a)
3.(a)
4.(c)
5.(d)
6. (d)
7.(d)
8. (a)
9.(b)
10.(a)
11.(c)
12.(c)
13.(d)
14.(d)
15. (d)
16.(d)
17.(a)
18.(c)
19.(a)
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