All Practice Exams

100+ Free CMA Foundation Paper 1 (FBLC) Practice Questions

Pass your ICMAI CMA Foundation Paper 1: Fundamentals of Business Laws and Business Communication exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
not-published Pass Rate
100+ Questions
100% Free
1 / 100
Question 1
Score: 0/0

The element of the communication process that confirms whether the message has been received and understood is:

A
B
C
D
to track
2026 Statistics

Key Facts: CMA Foundation Paper 1 (FBLC) Exam

50

MCQs (2 marks each)

ICMAI CMA Foundation Exam Pattern

100

Total Marks

ICMAI Syllabus 2022 Paper 1

40%

Minimum to Pass

ICMAI Foundation Passing Criteria

80%

Business Laws Weight

ICMAI Syllabus 2022 Paper 1

No

Negative Marking

ICMAI CMA Foundation Exam Pattern

INR 6,000

Course Registration Fee

ICMAI Foundation Fee

ICMAI CMA Foundation Paper 1 (FBLC) is a 100-mark objective paper with 50 multiple-choice questions of 2 marks each, answered in a 2-hour offline session shared with Paper 2. Under Syllabus 2022, Section A (Fundamentals of Business Laws) carries 80% weight, split across an introduction to law (10%), the Indian Contract Act 1872 (30%), the Sale of Goods Act 1930 (20%), and the Negotiable Instruments Act 1881 (20%); Section B (Business Communication) carries 20%. There is no negative marking, and candidates need a minimum of 40% to pass. The course registration fee is INR 6,000 for all four Foundation papers.

Sample CMA Foundation Paper 1 (FBLC) Practice Questions

Try these sample questions to test your CMA Foundation Paper 1 (FBLC) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the Indian legal system, which of the following is regarded as the primary source of law?
A.Legislation (statutes enacted by Parliament and State Legislatures)
B.Newspaper editorials on legal matters
C.Personal opinions of practising advocates
D.Customary greetings exchanged in business
Explanation: Legislation, or enacted law passed by the legislature, is a primary source of law in India. Other recognised sources include customs, judicial precedents, and personal/statute law, but legislation is the principal formal source.
2Law that is created and enforced by the State through its recognised institutions is best described as:
A.Moral law
B.Positive (man-made) law
C.Religious doctrine only
D.Natural instinct
Explanation: Positive law refers to man-made rules formally enacted and enforced by the State. It is distinguished from moral or natural law, which is not necessarily backed by State machinery.
3Subordinate (delegated) legislation refers to:
A.Laws passed directly by Parliament in its primary sessions
B.Judgments delivered by the Supreme Court
C.Rules, regulations, and by-laws made by an authority under powers delegated by the legislature
D.Customs followed by trading communities
Explanation: Subordinate legislation is law made by an executive or other authority using rule-making power that the legislature has delegated to it (e.g., rules and notifications). It must stay within the limits of the parent (enabling) Act.
4The doctrine of binding judicial precedent, under which lower courts follow the decisions of higher courts, is known as:
A.Res judicata
B.Ultra vires
C.Locus standi
D.Stare decisis
Explanation: Stare decisis ('to stand by things decided') is the principle that courts follow precedents set by higher courts on similar points of law, ensuring consistency and certainty in the legal system.
5Which court is the highest court of appeal in India and the apex of the judicial hierarchy?
A.The Supreme Court of India
B.The High Court of the State
C.The District Court
D.The Tribunal
Explanation: The Supreme Court of India stands at the apex of the judicial system; its decisions are binding on all other courts in the country under Article 141 of the Constitution.
6A Bill, after being passed by both Houses of Parliament, becomes an Act only when it receives:
A.The approval of the Prime Minister
B.The assent of the President of India
C.A majority vote in the relevant State Assembly
D.Publication in a leading newspaper
Explanation: In the legislative process, a Bill passed by both Houses of Parliament becomes law (an Act) only after it receives the assent of the President of India and is duly published.
7Which of the following best describes 'civil law' as a branch of law?
A.Law dealing with crimes and their punishment
B.Law relating only to international treaties
C.Law governing private rights and remedies between individuals, such as contracts and property
D.Law applicable exclusively to the armed forces
Explanation: Civil law governs disputes over private rights and obligations between persons, such as contracts, property, and torts, with remedies usually in the form of compensation or specific relief, rather than punishment.
8The Latin maxim 'ignorantia juris non excusat' means:
A.Justice delayed is justice denied
B.Let the buyer beware
C.No one can be a judge in his own cause
D.Ignorance of law is no excuse
Explanation: 'Ignorantia juris non excusat' establishes that a person cannot escape liability by claiming ignorance of the law; everyone is presumed to know the law of the land.
9Which of the following is an example of personal law in India?
A.Hindu Marriage Act / Muslim personal law governing marriage and succession
B.The Indian Penal Code
C.The Companies Act
D.The Negotiable Instruments Act
Explanation: Personal laws govern matters such as marriage, divorce, inheritance, and succession, and apply according to a person's religion or community, e.g., Hindu law and Muslim personal law.
10Mercantile law (commercial law) primarily deals with:
A.Punishment for criminal offences
B.Rights and obligations arising out of trade, commerce, and business transactions
C.Constitutional powers of the President
D.Religious rituals and ceremonies
Explanation: Mercantile or commercial law covers the legal rules governing trade and business, including contracts, sale of goods, negotiable instruments, partnership, and companies.

About the CMA Foundation Paper 1 (FBLC) Exam

CMA Foundation Paper 1, Fundamentals of Business Laws and Business Communication (FBLC), is the first paper of the ICMAI CMA Foundation course. It tests Indian business laws (Contract Act 1872, Sale of Goods Act 1930, Negotiable Instruments Act 1881) and business communication through 50 multiple-choice questions worth 100 marks.

Questions

50 scored questions

Time Limit

2-hour Session I (shared with Paper 2)

Passing Score

Minimum 40% in the paper

Exam Fee

Included in the INR 6,000 CMA Foundation course registration fee; no separate per-paper fee (The Institute of Cost Accountants of India (ICMAI))

CMA Foundation Paper 1 (FBLC) Exam Content Outline

10%

Introduction to Law and Legal System

Sources of law, classification of law, the Indian legal system, court hierarchy, legislative process, and primary versus subordinate (delegated) legislation.

30%

Indian Contract Act, 1872

Essentials of a valid contract, offer and acceptance, consideration, capacity, free consent, legality of object, void and voidable agreements, contingent and quasi-contracts, performance, discharge, breach, indemnity, guarantee, bailment, pledge, and agency.

20%

Sale of Goods Act, 1930

Sale versus agreement to sell, goods and price, conditions and warranties, caveat emptor, transfer of property and title, risk, performance, unpaid seller rights, auction sales, and remedies for breach.

20%

Negotiable Instruments Act, 1881

Promissory notes, bills of exchange, cheques, parties, endorsement, negotiation, holder and holder in due course, crossing of cheques, presumptions, maturity and days of grace, and dishonour including Section 138.

20%

Business Communication

Communication concept and process, encoding, decoding, feedback, barriers, verbal and non-verbal communication, formal and informal channels, directions of communication, business correspondence, and the 7 Cs of effective communication.

How to Pass the CMA Foundation Paper 1 (FBLC) Exam

What You Need to Know

  • Passing score: Minimum 40% in the paper
  • Exam length: 50 questions
  • Time limit: 2-hour Session I (shared with Paper 2)
  • Exam fee: Included in the INR 6,000 CMA Foundation course registration fee; no separate per-paper fee

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CMA Foundation Paper 1 (FBLC) Study Tips from Top Performers

1Prioritise the Indian Contract Act, 1872 because it carries 30% weight, the highest of any topic in the paper.
2Memorise key definitions and section numbers (for example, Section 138 cheque dishonour) since objective questions often test exact statutory language.
3Practise distinguishing closely related concepts such as condition versus warranty and sale versus agreement to sell.
4Since there is no negative marking, attempt every question and make an educated guess when unsure.
5Revise the 7 Cs of effective communication and the communication process for the Section B questions.
6Use timed MCQ mocks because Paper 1 shares a single 2-hour session with Paper 2.

Frequently Asked Questions

How many questions are on CMA Foundation Paper 1?

Paper 1 (FBLC) has 50 multiple-choice questions worth 2 marks each, for a total of 100 marks. Papers 1 and 2 are answered together in one 2-hour session, so candidates should pace themselves across both papers.

What is the passing mark for CMA Foundation Paper 1?

A candidate must secure at least 40% in the individual paper to pass. ICMAI evaluates Foundation papers subject-wise, so each paper must independently meet the 40% threshold.

Is there negative marking in CMA Foundation Paper 1?

No. The CMA Foundation examination is objective with no negative marking for incorrect answers, so candidates are encouraged to attempt every question rather than leaving any blank.

What syllabus applies to CMA Foundation Paper 1 in 2026?

ICMAI Syllabus 2022 applies. Section A, Fundamentals of Business Laws, carries 80% (introduction to law 10%, Indian Contract Act 1872 30%, Sale of Goods Act 1930 20%, Negotiable Instruments Act 1881 20%), and Section B, Business Communication, carries 20%.

What is the eligibility for the CMA Foundation course?

A candidate must have passed Class 12 (10+2) or an equivalent examination to appear for the Foundation exam, with provisional admission allowed after passing Class 10. No work experience is required.

How much does the CMA Foundation course cost?

The CMA Foundation course registration fee is INR 6,000, which covers all four Foundation papers including Paper 1. ICMAI does not charge a separate per-paper examination fee at the Foundation level.

Is CMA Foundation Paper 1 online or offline?

The CMA Foundation examination, including Paper 1, is conducted offline in pen-and-paper mode at ICMAI examination centres across India. It is fully objective, multiple-choice based.

Which laws are covered in CMA Foundation Paper 1?

Paper 1 covers an introduction to law and the legal system, the Indian Contract Act 1872, the Sale of Goods Act 1930, and the Negotiable Instruments Act 1881, alongside business communication concepts and correspondence.