MBA/MBA Business Law Mcq Set 5 Sample Test,Sample questions

Question:
______ is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose.

1.Incorporation

2.Private company

3.Company

4.Public company

Posted Date:-2021-11-11 07:27:58


Question:
______ is the resolution which is passed , at valid called general meeting, by special majority of the meeting.

1.Ordinary resolution

2.Special resolution

3.Resolution by postal ballot

4.Resolution requiring special notice.

Posted Date:-2021-11-11 07:43:33


Question:
_______ are the true owners of the company.

1.Members

2.Investors

3.Directors

4.Share holders

Posted Date:-2021-11-11 07:44:54


Question:
_______ is a legal person which capable of perpetual succession and common seal

1.Company

2.Firm

3.Voluntary Association

4.Partnership.

Posted Date:-2021-11-11 07:50:07


Question:
________ Company may be companies limited by shares companies limited guarantee, unlimited companies.

1.Number of members

2.Liability of members

3.Registered

4.Incorporation

Posted Date:-2021-11-11 07:51:12


Question:
________ is a person who has ultimate control over the affairs of factory

1.Young person

2.Adult

3.Occupier

4.Adolescent

Posted Date:-2021-11-11 07:44:06


Question:
_________ guarantees its established quality

1.Patent

2.Goods

3.Trade mark

4.Safety

Posted Date:-2021-11-11 07:45:47


Question:
A _______ may be defined as a person having aontrol over the affairs, conduct and management of a company.

1.Share holders

2.Director

3.Body Corporate

4.Member

Posted Date:-2021-11-11 07:39:18


Question:
A contingent contract dependent on the non happening of a future uncertain event becomes void when such event

1.Happens

2.Does not become impossible

3.Does not happen

4.Both (a) and (b)

Posted Date:-2021-11-11 07:18:39


Question:
A contract is discharged by novation which means the;

1.Cancellation of the existing contract

2.Change in one or more terms of the contract

3.Substitution of existing contract for a new one

4.None of these

Posted Date:-2021-11-11 07:14:41


Question:
A contract made by mistake about some foreign law, is;

1.Void

2.Valid

3.Voidable

4.illegal

Posted Date:-2021-11-11 07:17:32


Question:
A meeting of Board of Directors shall be held at least _______

1.One month

2.Once in every 3 months and at least 4 such meetings shall be held every year.

3.Two month

4.4 months and at least 3 such meetings must be held in every year.

Posted Date:-2021-11-11 07:40:41


Question:
A party entitled to rescind contract, losses the remedy where

1.He has ratified the contract

2.Third party has acquired right in good faith

3.Contract is not separable and recession is sought of a party only

4.All of these

Posted Date:-2021-11-11 07:19:08


Question:
A public company has been defined in sec ______________

1.3(1)(iv)

2.3(1)(i)

3.3(1)(iii)

4.3(1)(ii)

Posted Date:-2021-11-11 07:29:17


Question:
Accounts of a company must be audited by an ____

1.Chartered Accountant

2.Auditor

3.Board of Directors

4.All of these.

Posted Date:-2021-11-11 07:28:50


Question:
An act which is to be ultra virus a company is ____

1.Void

2.Valid

3.Both A and B

4.None of these.

Posted Date:-2021-11-11 07:47:25


Question:
An agreement, which prevents a person from carrying lawful business is

1.Valid

2.Void

3.Voidable

4.Contingent

Posted Date:-2021-11-11 07:17:56


Question:
An official liquidator is appointed by the _____

1.Central government

2.By Court

3.State Government

4.Company

Posted Date:-2021-11-11 07:48:59


Question:
Articles of association adopt the rules and regulations contained in ________ of schedule I of the companies Act

1.Table C

2.Table D

3.Table A

4.Table B

Posted Date:-2021-11-11 07:38:47


Question:
As a general rule, an agreement made without consideration is;

1.Void

2.Voidable

3.Valid

4.Unlawful

Posted Date:-2021-11-11 07:16:24


Question:
As per Sec. 439 who can file a petition to the Tribunal for winding up?

1.The Registrar

2.Company

3.Contributory

4.Any one of these.

Posted Date:-2021-11-11 07:49:31


Question:
Can a person who is usually of unsound, but occasionally of sound mind, make a contract?

1.Yes, he can always make a contract

2.Yes, but only when he is sound mind

3.No, he cannot make contract

4.Can't be determined

Posted Date:-2021-11-11 07:10:14


Question:
Consent is not said to be free when it is caused by

1.Coercion

2.Undue influence

3.Fraud

4.All of these

Posted Date:-2021-11-11 07:11:56


Question:
Consideration may be

1.Past

2.Present

3.Future

4.All of the above

Posted Date:-2021-11-11 07:11:30


Question:
Every share holder of a company is also known as ________

1.Member

2.Partner

3.Director

4.All of the above

Posted Date:-2021-11-11 07:35:16


Question:
Holding company is defined in section _______ of the companies Act.

1.4(4)

2.2(2)

3.3(4)

4.3(1)

Posted Date:-2021-11-11 07:31:55


Question:
If the company’s Act go beyond the provisions of the Memorandum, its act will be ______

1.Constructive notice

2.Circular

3.Ultra virus

4.None of the above

Posted Date:-2021-11-11 07:34:47


Question:
In case of illegal agreements, the collateral agreements are;

1.Void

2.Valid

3.Voidable

4.Any of these

Posted Date:-2021-11-11 07:12:20


Question:
LA, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the entire amount of Rs.60000. Here

1.A can file a suit against D for recovery of the amount exceeding his share

2.A is entitled to recover Rs.20000 each from B and C

3.On payment by A, the contract is discharged and B and C are also not liable to A.

4.D is not justified here and is liable to refund the entire amount to A

Posted Date:-2021-11-11 07:09:49


Question:
Minimum _______ and maximum ________ constitute a private limited company

1.2 of 10

2.7 of unlimited

3.2 of 15

4.2 of 50

Posted Date:-2021-11-11 07:50:41


Question:
Shelf prospects relates under Sec. ______

1.16 A

2.14 A

3.60 A

4.40 A

Posted Date:-2021-11-11 07:48:25


Question:
Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for;

1.Damages

2.Injunction

3.Quantum merit

4.None of these

Posted Date:-2021-11-11 07:15:06


Question:
The articles of Association and the memorandum of Association are drafted by ________

1.Auditor

2.Director

3.Secretary

4.Register

Posted Date:-2021-11-11 07:30:35


Question:
The auditor of government company is appointed by the ________ of India

1.High court

2.Supreme court

3.State legislative

4.Controller and Auditor General.

Posted Date:-2021-11-11 07:34:19


Question:
The board of directors delegate the power to ________

1.Issue debentures

2.Issue of shares

3.Invest the fund

4.Make loans

Posted Date:-2021-11-11 07:31:06


Question:
The chairman of the company has _________ vote

1.1

2.3

3.2

4.None of these.

Posted Date:-2021-11-11 07:42:56


Question:
The first annual general meeting of the company must be held within ______

1.6 months of incorporation

2.6 months from the date at which the company’s entitled to start its business

3.18 months from the date at which the company is entitled to start its business

4.18 months of incorporation.

Posted Date:-2021-11-11 07:42:26


Question:
The managing directors hold the _________ shares of the company.

1.Deemed

2.Equity

3.Qualification

4.Preferences

Posted Date:-2021-11-11 07:39:52


Question:
The other name of indoor management is called ________

1.Golden rule

2.Constructive notice

3.Indoor rule

4.Tarquand rule

Posted Date:-2021-11-11 07:32:21


Question:
The right given to a particular class of shareholders are called the _______

1.Special rights

2.General rights

3.Class right

4.None of the above

Posted Date:-2021-11-11 07:33:42


Question:
The shorter versions of a prospectus is also known as _______

1.Deemed prospectus

2.Incomplete prospectus

3.Abridged prospectus

4.Red Herring Prospectus

Posted Date:-2021-11-11 07:29:56


Question:
The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the _____ the Act

1.Schedule I

2.Schedule IV

3.Schedule III

4.Schedule II

Posted Date:-2021-11-11 07:32:50


Question:
When a director voluntarily remains absent from the three consecutive meetings of the Board of Directors, and

1.He become liable to be punished with @Rs.500 for every default

2.He is disqualified for becoming a director of any company

3.His office falls vacant

4.None of the above

Posted Date:-2021-11-11 07:41:12


Question:
When offer is made to a definite person, it is known as

1.General offer

2.Cross offer

3.Counter offer

4.Special offer

Posted Date:-2021-11-11 07:19:41


Question:
Where a directors acts dishonestly to the interest of the company. He will be held liable for _______

1.Negligence

2.Malafide acts

3.Ultra virus acts

4.Breach of fiduciary duty

Posted Date:-2021-11-11 07:46:58


Question:
Which is the following is false? An acceptance:

1.Must be communicated

2.Must be absolute and unconditional

3.Must accepted by a person having authority to accept

4.May be presumed from silence of offeree

Posted Date:-2021-11-11 07:10:44


Question:
Which is the following is false? Consideration:

1.Must move at the desire of the promisor

2.May move from any person

3.Must be illusory

4.Must be some value

Posted Date:-2021-11-11 07:11:06


Question:
Which of the following documents is submitted by the board of directors at every AGM________

1.Balance sheet

2.Profit and Loss Account

3.Both A and B

4.None of the above

Posted Date:-2021-11-11 07:45:22


Question:
Which of the following persons do not fall under the category of persons of unsound mind?

1.Idiot

2.Lunatics

3.Drunken

4.Alien

Posted Date:-2021-11-11 07:16:59


Question:
Which of the following statement is true?

1.An agreement enforceable by law is a contract

2.An agreement is an accepted proposal

3.Both (a) and (b)

4.None of these

Posted Date:-2021-11-11 07:15:36


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