Business Law
Final Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following is not a requirement for a valid
contract?
- A) Offer
- B) Acceptance
- C) Consideration
- D) Environmental Impact Assessment
Correct ANS: D
Rationale: While the first three options are essential elements
of a valid contract, an Environmental Impact Assessment is not a
requirement for contractual validity.
2. Which of the following remedies is typically available for
breach of contract?
- A) Imprisonment
- B) Compensatory damages
- C) Community service
- D) Banning from business
Correct ANS: B
©2024/2025
, Rationale: Compensatory damages are a standard legal remedy
intended to make the injured party whole after a breach of
contract.
3. An agent has which of the following duties towards their
principal?
- A) Loyalty
- B) Dishonesty
- C) Complacency
- D) Non-disclosure
Correct ANS: A
Rationale: An agent is obligated to act in the best interests of
the principal, which includes a duty of loyalty.
4. Which type of business entity provides limited liability to its
owners while allowing tax benefits of a partnership?
- A) Sole Proprietorship
- B) Limited Liability Company (LLC)
- C) Partnership
- D) Corporation
Correct ANS: B
©2024/2025
, Rationale: An LLC combines elements of both a corporation
and a partnership, offering limited liability and tax benefits.
5. What is the primary purpose of intellectual property laws?
- A) To tax inventions
- B) To protect the rights of inventors and creators
- C) To allow free access to public information
- D) To create monopolies
Correct ANS: B
Rationale: Intellectual property laws exist primarily to protect
the rights of inventors and creators and incentivize innovation and
creativity.
Fill-in-the-Blank Questions
6. The concept of ________ refers to a situation where a party
can limit or eliminate their liability through contractual
agreements.
Correct ANS: indemnification
Rationale: Indemnification clauses allow one party to protect
themselves from the consequences of certain risks.
©2024/2025