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Commerce · Q810

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 810

Q810

Consider the following statements: Assertion (A): Persons dealing with the company shall be within their rights to assume that the provisions of Articles have been complied with by the company in its internal working. Reason (R): Every person who deals with a company is not supposed to have read and understood the Memorandum and Articles of the company. Now select your answer:

A.
Both A and R are true and R is the correct explanation of A
B.
Both A and R are true but R is not the correct explanation of A
C.
A is true but R is false
Answer
D.
A is false but R is true

Answer: Option C

Solution

Answer: Option C
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