SS3

**Contracts:**

1. What type of contract is formed when both parties exchange promises to perform certain acts in the
future?

a) Unilateral contract

b) Bilateral contract

c) Express contract

d) Voidable contract

2. Which of the following elements is essential for a valid contract?

a) Invitation to treat

b) Consideration

c) Counteroffer

d) Past consideration

3. In contract law, what does the term "privity" refer to?

a) A breach of contract

b) The involvement of a third party

c) The legality of a contract

d) Mutual consent of the parties

**Agency:**

4. What type of agency relationship exists when an agent has the authority to make legal decisions on
behalf of the principal?
 a) Special agency

b) Subagency

c) Power of attorney

d) General agency

5. When does an agency relationship terminate by operation of law?

a) Completion of the agency task

b) Death of the principal

c) Resignation of the agent

d) Both b and c

**Contracts of Sales:**

6. In a contract of sale, what is the term for the transfer of ownership from the seller to the buyer?

a) Offer

b) Acceptance

c) Delivery

d) Consideration

7. Which of the following is an implied warranty in a sale of goods contract?

a) Warranty of title

b) Warranty of fitness for a particular purpose

c) Warranty of merchantability

d) Express warranty
**Contracts of Employments:**

8. What type of employment contract does not specify a definite duration and allows either party to
terminate the relationship at any time?

a) Fixed-term contract

b) Indefinite-term contract

c) Temporary contract

d) Probationary contract

9. Which employment law concept prohibits discrimination based on race, color, religion, sex, or
national origin?

a) Employment-at-will

b) Equal Pay Act

c) Title VII of the Civil Rights Act

d) Occupational Safety and Health Act (OSHA)

**Structure of Business:**

10. In which type of business structure do owners have limited liability and can elect officers to manage
the business?

a) Sole proprietorship

b) Corporation

c) Partnership

d) Limited Liability Company (LLC)

11. What is a disadvantage of a sole proprietorship?

a) Limited liability
 b) Difficulty in raising capital

c) Shared decision-making

d) Double taxation

**Government Regulation of Business:**

12. Which government agency is responsible for enforcing antitrust laws and promoting fair
competition?

a) Securities and Exchange Commission (SEC)

b) Federal Trade Commission (FTC)

c) Environmental Protection Agency (EPA)

d) Food and Drug Administration (FDA)

13. What is the purpose of consumer protection laws?

a) To promote business monopolies

b) To protect consumers from unfair business practices

c) To limit competition in the market

d) To reduce taxes on businesses

**Business Environment:**

14. What factor refers to the analysis of factors such as demographics, economic conditions, and cultural
trends that affect businesses?

a) Microenvironment

b) Macroenvironment

c) Competitive environment
 d) Internal environment

15. In a SWOT analysis, which element assesses internal factors that are helpful to achieving business
objectives?

a) Strengths

b) Weaknesses

c) Opportunities

d) Threats

**General:**

16. What is the primary purpose of a non-compete clause in a contract?

a) To prevent unfair competition

b) To promote competition

c) To ensure confidentiality

d) To limit the duration of the contract

17. Which type of business regulation involves setting standards for product safety and quality?

a) Environmental regulation

b) Consumer protection regulation

c) Labor regulation

d) Quality control regulation

18. In business, what is the term for the process of converting inputs into outputs to achieve a specific
goal?

a) Outsourcing
 b) Benchmarking

c) Operations management

d) Strategic planning

19. What is the legal principle that allows a party to cancel a contract due to a major breach by the other
party?

a) Rescission

b) Accord and satisfaction

c) Novation

d) Waiver

20. Which of the following is NOT a characteristic of a monopoly?

a) Single seller

b) Barriers to entry

c) Perfect competition

d) Price control

Feel free to use or modify these questions for your purposes!