CMA Inter Business Laws and Ethics MCQs – CMA Inter Business Laws and Ethics Study Material is designed strictly as per the latest syllabus and exam pattern.
CMA Inter Business Laws and Ethics MCQs
Question 1.
Fill in the Blanks based on Factories Act 1948
(i) No child shall be employed or permitted to work in any factory for more than ……………….. hours in a day.
Answer:
4½hours
(ii) No female Child shall be required or allowed to work in any factory except between ……………………. AM and PM.
Answer:
8 AM – 7 PM.
(iii) No Child shall be employed during the Night and Night means a period of at least twelve consecutive hours which shall include the interval between ………………… PM and ……………….. AM.
Answer:
10 P.M – 6 A.M.
(iv) No woman shall be required or allowed to work in any factory except between the hours of ……………………. AM and PM. (Dec 2012, 1 x 4 = 4 marks)
Answer:
6 A.M. – 7 P.M. (Sec. 66)
Question 2.
(i) A part-time employee engaged on regular basis is eligible for Bonus under Payment of Bonus Act 1965. Write only True or False.
Answer:
This statement is true.
(ii) Whether Gratuity under Payment of Gratuity Act, 1972 is payable for the period of layoff under the industrial Disputes Act 1947. Write only True or False.
Answer:
This statement is true.
(iii) Fill in the blanks:
No adult worker shall be required to allow to work in a factory
(1) for more than ……………………… hours in any week.
Answer:
48 hrs.
(2) for more than ………………… hours in any day.
Answer:
9 hrs.
(3) the period of work of adult workers in a factory shall be so fixed. that no period shall exceed ……………………. hours. (June 2013, 1 mark each)
Answer:
5 hrs.
Question 3.
Choose the correct answer from the given tour alternatives:
(i) Cash is withdrawn by a customer of a bank from the automatic teller machine is an example of
(a) Express Contract
(b) Void Contract
(c) Tacit Contract
(d) Illegal Contract
Answer:
(c) Tacit Contract
(ii) Which of the following is not implied condition under The Sale of Goods Act, 1930?
(a) Sale by description
(b) Sale by discount price
(c) Sale by sample
(d) Quality or fitness
Answer:
(b) Sale by discount price
(iii) The Occupier of every factóry shall provide and maintain suitable room or rooms for the use of the children under the age of six years of women workers where the number of such women workers exceed
(a) 20
(b) 50
(c) 30
(d) 150
Answer:
(c) 30
(iv) Examine as to which of the following payments form part of “salary” under the provisions of the Payment of Bonus Act, 1965.
(a) Traveling allowance
(b) Commission on sales
(c) Dearness allowance
(d) Overtime allowance
Answer:
(c) Dearness allowance
(v) The Employees Provident Funds Act, 1952 is applicable to every establishment mentioned in Schedule I and employed
(a) 10 persons or more
(b) 100 or more persons
(c) 20 or more persons
(d) 50 or more persons
Answer:
(c) 20 or more persons
(vi) A factory employs 250 workers. All the workers including workers above 60 years of age and below 15 years of age went on strike. The employer
(a) can deduct fine from all the workers
(b) can not deduct fines from workers who are under the age of 15
(c) no fine can be imposed from workers who are 60 years and above
(d) can not deduct any fine from any worker
Answer:
(b) Cannot deduct fine from workers who are under the age of 15
(vii) The employer’s and employee’s share of contribution of ESI fund is
(a) 1.75% and 4.75% of wages respectively
(b) 3.25% and 0.75% of wages respectively
(c) 10% and 3.75% of wages respectively
(d) 11 % and 3.75% of wages respectively
Answer:
(b) 3.25% and 0.75% of wages respectively
(viii) A Formal notarial certificate attesting the dishonour of a bill or note is called
(a) Noting
(b) Protest
(c) Attestation of Dishonour
(d) Endorsement
Answer:
(b) Protest
(ix) Public notice is not required when there is
(a) admission of new partner
(b) retirement of any partner,
(c) expulsion of any partner
(d) dissolution of the firm
Answer:
(a) Admission on new partner
(x) A LLP shall fiíe an annual return duly authenticated with the Registrar within……………….. of closure of a financial year under the Limited Liability Partnership Act, 2008.
(a) 30 days s
(b) 45 days
(c) 60 days
(d) 90 days
Answer:
(c) 60 days
(xi) The board of directors may appoint additional directors from time to time if so authorized by
(a) Artides of Associabon
(b) Memorandum of Association
(c) A resolution passed at general meeting
(d) A resolution passed at board meeting
Answer:
(a) Articles of Association
(xii) Business ethics are gaining importance because of
(a) smooth functioning
(b) good image
(c) the growth of consumer movement
(d) increasing profit
Answer:
(c) The growth of consumer movement.
(xiii) Which of the following statements is correct about business ethics?
(a) Social responsibility and business ethics are considered different concepts
(b) Making higher profits should be the main objective of a business
(c) A business may be sustained only if it cares for society
(d) Companies making ethical investments may not be able to compete
Answer:
(c) A business may sustain only If it cares for society
(xiv) Holders of public office should take decisions solely in terms of the public interest. This principle of public life is called
(a) Integrity
(b) Accountability
(c) Honesty
(d) Selflessness (Dec 2013, 1 x 14 = 14 marks)
Answer:
(d) Selflessness
Question 3.
Choose the correct answer from the given four alternatives:
(i) A party who does not suffer any loss in case of breach of contract is entitled to
(a) Statutory damages
(b) Liquidated damages
(c) Exemplary damages
(d) Nominal damages
Answer:
(d) Nominal damages
(ii) If part of the contract is illegal, then the whole contract will be
(a) Voidable
(b) Void
(c) Legal
(d) Illegal
Answer:
(b) Void
(iii) In which of the following cases, the claim of Quantum Meruit arise
(a) when there is no breach of contract
(b) when a contract is discovered to be valid
(c) where something has been done non gratuitously
(d) where the contract is divisible
Answer:
(d) Where the contract is divisible
(iv) Amit tells Bharat in the presence of Chetan that Amit is agent of Chetan. Chetan maintains silence instead of denying it. Later, if Amit sells Chetai goods to Bharat, Chetan cai1,ot dispute Bharat’s title to the goods. This is example of
(a) sale by the official receiver
(b) sale by a tinder of goods
(c) sale by estoppel
(d) execution of Sale
Answer:
(c) Sale by estoppel.
(v) An act to dissuade the intending buyer from bidding or from raising the price by pointing out defects in the goods or by doing some other acts which prevent persons from forming a fair estimate of the price of the goods is known as
(a) Knock out an agreement
(b) Damping
(c) Puffers
(d) None of the above
Answer:
(b) Damping
(vi) If a minor draws, endorses, delivers or negotiates an instrument, such instrument binds
(a) all parties to the instrument Including the minor
(b) only the minor and no other parties to the instrument
(c) all parties to the instrument except the minor
(d) None of the above
Answer:
(c) all parties to the instrument except the minor
(vii) If a partnership firm, the decision can be made by rule of majority when decisions relate to
(a) policy matters
(b) ordinary routine matters
(c) financial matters
(d) buying and selling of property
Answer:
(b) Ordinary routine matters
(viii) Power to exempt any LLP or class of LLP for audits of accounts is with
(a) Inspector
(b) Central Government
(c) Any other regulatory authority
(d) None of the above
Answer:
(b) Central Government
(x) No fine can be imposed on any employed person who is under the age of
(a) 10
(b) 12
(c) 15
(d) 18
Answer:
(c) 15
(xi) In case of employee covered under the ESI, the accídent report shall be sent in ………………. to local office of the ESI to which trie company is attached.
(a) Fcmi No. 18
(b) Form No. 18A
(c) Form No. 25
(d) Form No. 16
Answer:
(d) Form No. 16
(xiv) Application for Director Identification Number (DIN) is to be made to Central Govt. in Form
(a) Dir – 1
(b) Dir- 2
(c) Dir – 3
(d) None of the above
Answer:
(b) DIR-2
(xvii) Business ethics is based on well-accepted
(a) Moral and Social Values
(b) Social Values only
(c) Moral Values only
(d) None of the above
Answer:
(a) Moral and Social Values
(xviii) Out of seven principles of public life, the principle of objectivity means
(a) holders of public office should take decisions solely in terms of the public interest.
(b) in carrying out public business including making public appointments, holders of public office should make choices on merit.
(c) holders of public office are accountable for their decisions and actions to the public.
(d) holders of public office should be as open as possible about all the decisions and actions that they take.
Answer:
(b) In carrying out public business including making public appointments, holders of public office should make choices on merit.
(xix) Who is responsible for ethical behaviour?
(a) Lecturers and Supervisors
(b) The Psychologist
(c) The Participants
(d) The Psychological Community
Answer:
(b) The Psychologist
(xx) The three C’s of business ethics are
(a) Commitment, Contribution and Consequences
(b) Compliance, ContributIon and Con€equences
(c) Compliance, Customs and Contribution
(d) Codes, Compliance, and Contributions (June 2014, 1 x 15= 15 marks)
Answer:
(b) Compliance, Contribution, and Consequences.
Question 4.
Answer all questions: (Choose the correct answer from the given four alternatives.).
(i) In social agreements usual presumption is
(a) that parties do not intend to create social relations.
(b) that parties intend to perform them.
(c) that parties do not intend to make legal and social relations.
(d) that the parties do not intend to create legal relations between them.
Answer:
(d) that the parties do not intend to create legal relations between them.
(ii) In a sale of goods, the doctrine of caveat emptor will not apply when there is
(a) usage of trade
(b) consent by fraud
(c) buyer’s error of judgment
(d) Merchantable Quality
Answer:
(d) Merchantable Quality
(iii) A bill of exchange, that is drawn accepted or endorsed without consideration is called
(a) Accommodation bill.
(b) Promissory note
(c) Trade bill
(d) Bearer instrument
Answer:
(a) Accommodation bill
(iv) Employee’s State Insurance Act, 1948 is applicable to all
(a) factories including factories belonging to Government and seasonal factories.
(b) factories excluding seasonal factories.
(c) factories including factories ‘belonging to Government and seasonal but excluding Silk factory.
(d) factories including factories belonging to Government but excluding seasonal factories.
Answer:
(d) factories including factories belonging to Government but excluding seasonal factories.
(v) A partner must give a public notice of his retirement from the firm in order absolve himself from them: liability for the acts of the other partners done after his retirement is known as
(a) Dormant partner
(b) Ostensible partner
(c) Nominal partner
(d) partner by estoppel
Answer:
(b) Ostensible partner
(vi) A prospectus which does not have complete particulars on the price of securities offered and the quantum of securities offered by the company is known as
(a) Private Placement
(b) Red-herring prospectus
(c) Deemed prospectus
(d) Shelf prospectus
Answer:
(b) Red-herring prospectus
(vii) The crucial step in understanding business ethics is
(a) Establishing codes of ethics
(b) Learning to recognize ethical issues
(c) Having efficient operations
(d) Implementing a strategic plan (Dec 2014, 2 x 7 = 14 marks)
answer:
(b) Learning to recognize ethical issues
Question 5.
Answer all questions (Choose the correct answer from the given tour alternatives.)
(i) An agreement which is enforceable at the option of one or more parties thereto but not at the option of other or others is called
(a) Void contract
(b) Voidable contract
(c) Void agreement
(d) Unenforceable contract
Answer:
(b) Voidable Contract
(ii) Which of the following agency is irrevocable under The Indian Contract Act, 1872?
(a) Agency for fixed period
(b) Agency for single transaction
(c) Agency coupled with interest
(d) Continuing agency
Answer:
(c) Agency coupled with interest
(iii) A Sqrt of tacit understanding/agreement among the intending bidders to stifle competition by not bidding against each other in an auction sale is called as
(a) Damping
(b) Knock-out agreement
(c) Puffers
(d) By-bidders
Answer:
(b) Knock-out agreement
(iv) When ani instrument is drawn conditionally or for a special purpose as a collateral security and not for the purpose of transferring property therein, it is called
(a) Ambiguous.
(b) Inchoate
(c) Escrow
(d) Inland
Answer:
(c) Escrow
(v) Which Committee ¡s constituted by the occupier to promote cooperation between. the workers and management in maintaining proper safety and health at workplace?
(a) Safety Committee
(b) Health Committee
(c) Management Workers Consultative Committee
(d) Maintenance Committee
Answer:
(a) Safety Committee
(vii) Businessmen or industrialists take initiative to form new companies. Their main function is to manage the company after its promotion, they are known as
(a) Particular Promoters
(b) Occasional Promoters
(c) Professional Promoters
(d) General Promoters
Answer:
(d) General Promoters
(viii) The study of ethics can be divided into four operational areas namely meta-ethics, normative ethics, descriptive ethics and
(a) positive ethics
(b) physical ethics
(c) applied ethics
(d) natural ethics (June 2015, 2 x7= 14 marks)
Answer:
(c) applied ethics
Question 6.
Answer all questions (Choose the correct answer from the given four alternatives):
(i) Anchal purchased a motor car from Kamal who had no title to it. Anchal used the motor car for several months. True owner spotted the motor car and demanded it from Anchal. Ir, such case:
(a) Anchal is bound to hand over the motor car to true owner.
(b) Anchal is not bound to return the motor car to true owner as he has paid in full settlement to Kamal.
(c) Anchal shalt advise true owner to approach Kamal.
(d) True owner has no ñght to claim either from Anchal or from Kamal. (Dec 2015, 1 mark)
Answer:
(a) Anchal is bound to hand over the motor car to true owner.
(ii) Which of the following agreements is wagering agreement under the Indian Contract Act, 1872?
(a) Crossword competition involving application of skill and knowledge.
(b) Contract of Insurance.
(c) A promise to pay B ₹ 1,000 if it rains on Monday.
(d) A agrees to pay B ₹ 1,000 if two straight lines should enclose a space. (Dec 2015, 1 mark)
Answer:
(c) A promise to pay B ₹ 1,000 if It rains on Monday.
(iii) Under Sale of Goods Act, which of the delivery of goods is called as delivery by attornment?
(a) Actual
(b) Symbolic
(c) Constructive
(d) Physical (Dec 2015, 1 mark)
Answer:
(c) Constructive
(iv) Where the price of the goods under a contract of sale is to be fixed by the valuation of a third party who fails to fix the valuation, but goods are supplied to the buyer, under section 10 of the Sale of Goods Act, 1930, the buyer is:
(a) Liable to pay the reasonable price of the goods.
(b) Liable to pay the minimum price of the goods.
(c) Not liable to pay any price until fixed by the valuer.
(d) Liable to pay the maximum retail price. (Dec 2015, 1 mark)
Answer:
(a) Liable to pay the reasonable price of the goods.
(v) Under Factories Act, 1948, where work of the same kind is carried out by two or more sets of workers during different periods of the day, each of such periods is called a:
(a) Relay
(b) Shift
(c) Recess
(d) Overtime (Dec 2015, 1 mark)
Answer:
(b) Shift
(vi) Under Employee’s State Insurance Act, in order to qualify for sickness benefits, the insured worker is required to contribute for:
(a) 70 days in a contribution period of 6 months.
(b) 78 days in a contribution period of 3 months.
(c) 91 days in a contribution period of 3 months.
(d) 78 days in a contribution period of 6 months. (Dec 2015, 1 mark)
Answer:
(d) 78 days in a contribution period of 6 months.
(vii) Ankh purchased goods worth ₹ 20,000 from Anuj. In lieu of cash payment, Ankit accepts a bill of exchange of ₹ 20,000 to be payable after three months. This is an example of:
(a) Accommodation Bill
(b) Fictitious Bill
(c) Genuine Bill
(d) Documentary Bill (Dec 2015, 1 mark)
Answer:
(c) Genuine Bill
(viii) Under the NegoUable Instruments Act, 1881,whether acceptance of a bill of exchange in the following situation shall be treated as ‘qualified’ acceptance where the acceptor:
(a) Undertakes to pay only 10,000 for a bill drawn for ₹ 15,000.
(b) Declares the payment to be independent of any other event.
(c) Writes, ‘Accepted, payable at ABC Bank’.
(d) Writes, ‘Accepted, payable at Delhi’. (Dec 2015, 1 mark)
Answer:
(a) Undertakes to pay only 10,000 tar a bill drawn for ₹ 15,000.
(ix) When a partnership firm is continued even after the expiry of fixed term is called:
(a) Perpetual partnership
(b) Fixed partnership
(c) Contract partnership
(d) Partnership at will (Dec 2015, 1 mark)
Answer:
(d) Partnership at will.
(x) When a partnership firm is continued even after the expiry of fixed term is called:
(a) Perpetual partnership
(b) Fixed partnership
(c) Contract partnership
(d) Partnership at will (Dec 2015, 1 mark)
Answer:
(c) Partner by estoppel
(xi) A person who is not a partner of a Partnership Firm, but he may liable for firm’s debt as if he was a Partner. Such a person is called:
(a) Nominal Partner
(b) Sleeping Partner
(c) Partner by estoppels
(d) Partner for profit only (Dec 2015, 1 mark)
Answer:
(b) Improve customers’ confidence
(xii) Business ethics are needed to create a faith about the quality, quantity, price, etc, of products. The customers have more trust and faith in the businessmen who follow ethical rules. They feel that such businessmen would not cheat them. Which one of the following is appropriate for it?
(a) Safeguarding consumers’ right
(b) Improve customers’ confidence
(c) Survival of business
(d) Consumer movement (Dec 2015, 1 mark)
Answer:
(xiii) Holders of public office should not place themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance of their official duties. This principle of public life is called:
(a) Selflessness
(b) Honesty
(c) Objectivity
(d) Integrity (Dec 2015, 1 mark)
Answer:
(d) Integrity
Question 7.
Answer all questions:
(a) Multiple choice questions:
(i) A contract is a combination of
(a) agreement and free consent
(b) agreement and consideration
(c) agreement and enforceability
(d) agreement and competence of parties
Answer:
(c) agreement and enforceability.
(ii) The provisions regarding maximum number of members in a partnership are given in
(a) The Partnership Act
(b) The Companies Act
(c) The Societies Registration Act
(d) The Co-operative Societies Act
Answer:
(b) The Companies Act.
(iii) X and Y agree to divide the profits of a business In equal shares but the loss if any is to be borne by X only. The partnership agreement is
(a) void
(b) avoidable
(c) lawful
(d) illegal
Answer:
(c) Lawful.
(iv) First aid boxes or cupboards equipped with prescribed contents and not less than one in number must be provided and maintained in every factory so as to be accessible during all working hours for
every
(a) 200 workers for any time
(b) 150 workers for any time
(c) 500 workers for any time
(d) 30 workers for any time
Answer:
(b) 150 workers for any time.
(v) When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the
(a) Preceding day
(b) Next preceding business day
(c) Same day of next week
(d) 3 days following the date holiday
Answer:
(b) Next Preceding business day.
(vi) In case of an employee who has not completed 15 years of age at the beginning of the Accounting year, the minimum bonus will be
(a) ₹ 100 or 8.33% of salary or wages whichever is higher.
(b) ₹ 60 or 8.33% of salary or wages whichever is higher.
(c) ₹ 60 or 8.33% of salary or wages whichever is lower. ‘
(d) ₹ 8.33% of salary or wages.
Answer:
(b) ₹ 60 or 8.33% of salary or wages whichever is higher.
(vii) Every LLP firm shall have at least …………………. designated partners who are individuals.
(a) two
(b) three
(c) four
(d) five (June 2016, 1 x 7 = 7 marks)
Answer:
(a) two.
Question 8.
(b) Fill in the blanks.
(i) The maximum number of parties in a contract may be ……………………. .
Answer:
Infinite.
(ii) The Primary role of …………………….. committee is to assist the board In identifying prospective directors.
Answer:
Nomination.
(iii) If gratuity is not paid within 30 days from the date it becomes payable simple interest @ ……………………… p.a. is payable on the expiry of the said period.
Answer:
10%.
(iv) The appropriate Government may direct that the provision of Minimum Wages Act, 1948 will not be applicable in case of wages payable to a ………………… person. (June 2016, 1 x 4 = 4 marks)
Answer:
Disabled.
Question 9.
State whether the following statements. are True (or) False.
(i) All agreements are contracts but all contracts are not agreements.
Answer:
False.
(ii) In a contract of guarantee two parties are necessary.
Answer:
False.
(iii) Delivery means voluntary transfer of possession of goods from one person to another.
Answer:
True.
(iv) Shareholders and Stakeholders are synonyms.
Answer:
False.
(v) Ethics and Law have the same purpose. (June 2016, 1 x 5 =5 marks)
Answer:
True.
Question 10.
Answer all questions:
(a) Multiple choice questions:
(i) A contract creates
(a) jus in personam.
(b) Just in rem.
(c) only rights and no obligations.
(d) only obligations and no rights.
Answer:
(a) Jus in personam.
(ii) Provisions of EPF & Miscellaneous Provision Act, 1952 are applicable to. Cinema/Theatre employing:
(a) 10 or more persons.
(b) 20 or more persons.
(c) 5 or more persons.
(d) 15 or more persons.
Answer:
(c) 5 or more persons.
(iii) In the absence of Partnership agreement, the Partner has:
(a) right to avail interest on advances paid to partnership firm.
(b) right to avail interest on advances paid to partnership firm provided there is profit.
(c) has no right to avail interest on advances.
(d) has right to avail interest on advances even after dissolution of the firm.
Answer:
(a) Right to avail interest on Advances paid to Partnership Firm.
(iv) A person who is employed by the seller to raise the price by fictitious bids. Such person is known as:
(a) Puffer
(b) By bidder
(c) Decoy Ducks
(d) All of the above.
Answer:
(d) All of the above.
(v) In case of banker’s refusal to honour the cheque in spite of sufficient funds in customer’s account, the banker is:
(a) liable to compensate the drawer.
(b) not liable to compensate the drawer.
(c) criminally liable under section 138.
(d) liable to be delisted.
Answer:
(a) Liable to compensate the drawer.
(vi) Dependants benefit is paid at the rate of:
(a) 60% of wages in the form of monthly payments.
(b) 75% of wages In the form of monthly payments.
(c) 80% of wages in the form of monthly payments.
(d) 90% of wages in the form of monthly payments.
Answer:
(d) 90% of wages in the form of monthly payments.
(vii) Board of Directors of every listed Company shall constitute an Audit Committee which shall consists of a minimum of:
(a) 2 Directors
(b) 3 Directors
(c) 4 Directors
(d) 5 Directors.
Answer:
(b) 3 Directors.
(viii) The maximum limit of bonus payable to an employee is fixed by way of percentage of salary or wages earned by the employee during the accounting year, the percentage is:
(a) 10%
(b) 15%
(c) 20%
(d) 25%.
Answer:
(c) 20%.
(ix) Who is the head of Central Information Commission?
(a) The State Information Commissioner.
(b) The Chief Information Commissioner
(c) The Chief Information Officer
(d) The Chairman of Information Commission.
Answer:
(b) The Chief Information Commissioner.
(x) Business Ethics also called as Corporate Ethics is a form of:
(a) Positive Ethics
(b) Applied Ethics
(c) Physical Ethics
(d) Practical Ethics. (Dec 2016, 1 x 10 = 10 marks)
Answer:
(b) Applied Ethics.
Question 11.
(b) Fill in the blanks:
(i) No adult worker can be allowed to work more than ……………………….. hours in a day.
Answer:
Nine.
(ii) A Meeting of Board of Directors must be held at least once in every ……………………… months.
Answer:
Three/Four
(iii) Only designated partners are liable to obtain unique identification number called as ……………… .
Answer:
Designated Partner Identification Number (DPIN)
(iv) Where the paid-up share capital of an One Person Company exceeds …………………. or its average annual turnover during the relevant period exceeds, it shall cease to be entitled to continue as a One Person Company. (Dec 2016, 1 x 4 = 4 marks)
Answer:
Fifty lakh rupees. two crore rupees.
Question 12.
(c) State whether the followin9 statements are True ‘(or) False:
(i) Broader definitions of Corporate governance stress a broader level of ‘ accountability to shareholders and other stakeholders.
Answer:
True
(ii) According to the Payment of Wages Act, 1936 other deductions cannot be more than 50% of wages.
Answer:
True
(iii) Limited Liability Partnership should have a minimum paid-up capital of INR 1,00,000.
Answer:
False
(iv) Two-thirds of total directors can be given permanent appointment in the company.
Answer:
False
(v) There is a prescribed Performa for RTI application. (Dec 2016, 1 x 5 = 5 marks)
Answer:
False.
Question 13.
Answer all questions.
(a) Multiple choice questions:
(i) The term ‘sub-agent’ in the business of agency is defined as a person employed by, and acting under the control of the
(a) Principal
(b) Original agent
(c) Lawyer
(d) Third person
Answer:
(b) Original agent.
(ii) The first endorsement of an instrument can be made by the
(a) Banker
(b) Payee
(c) Holder in due course
(d) Agent
Answer:
(b) Payee
(iii) Which of the following is not the mode of dissolution of a firm under voluntary dissolution?
(a) Dissolution by agreement
(b) Dissolution on the happenings of certain contingencies
(c) Dissolution on becoming a partner of unsound mind
(d) Compulsory dissolution
Answer:
(c) Dissolution on becoming a partner of unsound mind.
(iv) Whitewash or color wash should be carried out at least once In every period of
(a) 14 months
(b) 24 months
(c) 48 months.
(d) 60 months.
Answer:
(a) 14 months
(v) The term family’ as defined in ESI Act, 1948 does not Include
(a) a spouse
(b) a minor adopted child
(c) a dependent unmarried daughter
(d) an independent married sister
Answer:
(d) an independent married sister
(vi) Which one of the following amounts to safety measure?
(a) Artificial humidification
(b) Ventilation
(c) Fencing of factory
(d) First aid appliances.
Answer:
(c) Fencing of factory
(vii) if a company does not have a çommon seal, the share certificate shall be signed by
(a) Two Directors
(b) One Director and Company Secretary
(c) Two Directors and Company Secretary
(d) Company Secretary
Answer:
(b) One Director and Company Secretary.
(viii) In case of e-voting, notice shall be sent as attachment ¡n
(viii) PDF file.
(b) Word file
(c) Excel file
(d) Access file
Answer:
(viii) PDF file.
(ix) A Director may be elected by small shareholders upon a notice by
(a) not less than 1000 small shareholders.
(b) one-tenth of the total number of shareholders.
(c) not less than 1000 small shareholders or one-tenth of such shareholders, whichever is lower.
(d) one-tenth of 1000 small shareholders.
Answer:
(c) not less than 1000 small shareholders or one-tenth of such shareholders, whichever is lower.
(x) Meta ethics deal with the nature of ………………. .
(a) external influences.
(b) Moral judgment.
(c) material facts.
(d) animal rights. (June 2017, 1 mark each)
Answer:
(b) Moral judgment.
Question 14.
(b) Fill in the blanks:
(i) Misrepresentation must relate to some fact which is material to the ……………………. .
Answer:
Contract
(ii) The LLP shall inform the concerned Registrar within ………………. of the date of registration about the conversion and the particulars of LLP.
Answer:
15 days
(iii) The term of office of a member of the standing committee, constituted under ESI Act, be two years from the date on which his election is ……………….. .
Answer:
notified.
(iv) The registered office shall be opened within 15 days from the date of ……………………. of the company.
Answer:
incorporation
(vi) A company shall send copy of each of the documents such as memorandum etc., to a member within ……………….. days of the request made by him. (June 2017, 5 marks)
Answer:
7 days
Question 15.
(c) True or False:
(i) In an agreement to sale, the buyer is entitled to recover the same from the official liquidator in case of insolvency of the seller.
Answer:
False
(ii) The term employed person’ includes the legal representatives of a deceased employed person.
Answer:
True
(iii) Payment of Gratuity Act, 1972 applies to every shop and establishment 9mploying seven or more persons.
Answer:
False
(iv) Any misstatement in the prospectus would attract the liability on the issuer.
Answer:
True
(v) Continuous improvement or kaizen is a popular theme. (June 2017, 5 marks)
Answer:
True
Question 16.
Match and Pair:
| Column I | Column II |
| 1. Presentment | (A) Determines acceptable conduct if business organization |
| 2. Form no. INC – 23 | (B) Issue of global depository receipt |
| 3. Continuing guarantee | (c) Bill of exchange |
| 4. Business ethics | (D) Shifting of registered office within the same state |
| 5. Section 41 of the Companies Act | (E) Guarantee which extends to a series of transactions |
(June 2017, 5 marks)
Answer:
| Column I | Column II |
| 1. Presentment | (C) Bill of exchange |
| 2. Form no. INC – 23 | (D) Shifting of registered office within the same state |
| 3. Continuing guarantee | (E) Guarantee which extends to a series of transactions |
| 4. Business ethics | (A) Determines acceptable conduct in business organization |
| 5. Section 41 of the Companies Act | (B) Issue of global depository receipt |
Question 17.
(a) Answer all questions:
Multiple choice questions:
(i) Which one of the following is not the discharge by operation of law?
(a) By merger
(b) By insolvency.
(c) By breach of contract
(d) By the unauthorized alteration of items of a written document
Answer:
(c) By breach of contract
(ii) Which of the following Is a method of discharge form liability?
(a) By endorsement
(b) By promising
(c) By cancellation
(d) By registration
Answer:
(c) By cancellation
(iii) A partner may contribute to the LLP
(a) tangible of intangible property.
(b) moveable or immovable property.
(c) money, promissory note, etc.
(d) Any of the above
Answer:
(d) Any of the above
(iv) Gratuity is payable to an employee after he has rendered continuous service for not less than five years on his
(a) transfer
(b) daughter’s marriage
(c) re-employment
(d) resignation
Answer:
(d) resignation
(v) Who will not be considered as an employee?
(a) Canteen workers
(b) Casual workers
(c) Partners
(d) Part-time employee
Answer:
(c) Partners
(vi) “Individual pension account” means an account of subscriber, executed by a contract setting out the terms and conditions under the
(a) Provident fund scheme
(b) National pension system
(c) Citizen welfare system
(d) Minimum wage payment scheme
Answer:
(b) National pension system
(vii) Which of the following is not a category of company?
(a) Inactive company.
(b) Assistant Company
(c) Dormant Company
(d) Producer Company
Answer:
(b) Assistant Company
(viii) Section 92 of the Companies Act, 2013 requires a company to prepare and file annual return in form no.
(a) MGT-12
(b) INC-23
(c) MGT-7
(d) SH-10
Answer:
(c) MGT-7
(ix) An instrument of the proxy shall be deposited with the registered office of the company within …………………….. before the conduct of the meeting.
(a) 7 hours
(b) 21 hours
(c) 48 hours
(d) 60 hours
Answer:
(c) 48 hours
(x) A proper foundation of ethics requires a standard of …………………… goals and actions can be compared to. (Dec 2017, 1 x 10 = 10 marks)
(a) value
(b) living
(c) life
(d) speech
Answer:
(a) value
Question 18.
Match and pair:
| Column I | Column II |
| 1. Hybrid between a company and a partnership | (A) Existence from the time of incorporation to winding up |
| 2. Perpetual succession | (B) Powers of the controlling authority |
| 3. Red herring prospectus | (C) Need for business ethics |
| 4. Requiring the discovery and production of documents | (D) A limited liability partnership |
| 5. Smooth functioning | (E) Does not include complete particulars of the quantum or price of securities |
(Dec 2017, 5 marks)
Answer:
| Column I | Column II |
| 1. Hybrid between a company and a partnership | (D) A limited liability partnership |
| 2. Perpetual succession | (A) Existence from the time of incorporation to winding up |
| 3. Red herring prospectus | (E) Does not include complete particulars of the quantum or price of securities |
| 4. Requiring the discovery and production of documents | (B) Powers of the controlling authority |
| 5. Smooth functioning | (C) Need for business ethics |
Question 19.
True and False:
(i) The seller of the goods is not bound to deliver them until the buyer applies for the delivery.
Answer:
True
(ii) The partners of a LLP may remove an auditor from office at any time by following the procedure as laid down in the LIP agreement.
Answer:
True
(iii) The certificate of fitness granted by the certifying surgeon shall be valid for a period of 24 months from the date thereof.
Answer:
False
(iv) The e-voting shall remain open for not less than 3 days and shall close at 5.00 P.M. on the date preceding the date of general meeting.
Answer:
True
(v) The term ‘ethics’ derived from French word ‘ethos which means character. (Dec 2017, 5 marks)
Answer:
False
Question 20.
Fill in the blanks:
(i) Remission means ………………….. of a lesser performance that what is actually due under the contract.
Answer:
acceptance
(ii) A promissory note or bill of exchange, in which ho time for payment is specified, and a cheque, are payable on ………………. .
Answer:
demand
(iii) Where a person provides labour or service to another for remuneration which is less than the minimum wage, such labour is called …………………. .
Answer:
forced labour
(iv) The monies received on application shall be kept in a separate bank account in a ……………….. bank.
Answer:
schedule
(v) The seven principles of ………………… were set out by Lord Nolan in 1995. (Dec 2017, 5 marks)
Answer:
public life
Question 21.
Answer all the following questions:
(a) Choose the correct answer from the given alternatives (you may write only the Roman numeral and the alphabet choosen for your answer):
(i) The main feature of e-contract is
(a) Cost and acceptability
(b) Purity and clarity
(c) Speed, accurate and reliable
(d) Perfection and attractive
Answer:
(c) Speed, accurate and reliable
(ii) Which of the following is not an unpaid seer’s right against the goods?
(a) The right of retention
(b) The right of stoppage in transit
(c) The right of seeking claim for damage
(d) The right of resale
Answer:
(c) The right of seeking claim for damage
(iii) Where the endorser does not want that the endorsee or any other holder to incur any expense on his account is called
(a) Restrictive endorsement
(b) Sans frais endorsement
(c) Conditional endorsement
(d) Unwanted endorsement
Answer:
(b) Sans frais endorsement
(iv) The liability of the partners will continue for the acts done before the dissolution, even after the dissolution, until
(a) ‘Public notice ¡s given of the dissolution
(b) Partners are getting the final payment
(c) Claim is demanded by the creditors
(d) The death of partners
Answer:
(a) ‘Public notice is given of the dissolution
(v) Every employee shall be entitled to receive bonus from his employer in an accounting year if he has worked for not less than
(a) Ten working days
(b) Twenty working days
(c) Thirty working days
(d) Forty working days
Answer:
(c) Thirty working days
(vi) Under Employee’s State Insurance Act, 1948, the term of the office of the members of Medical Benefit Council shall be
(a) 2 Years
(b) 4 Years
(c) 5 Years
(d) 10 Years
Answer:
(b) 4 Years
(v) Which one cannot be transacted through postal ballot?
(a) Appointment of auditor
(b) Election of a Director
(c) Buyback of shares by a company
(d) Change in place of registered office outside the local limits of any city, town or village
Answer:
(c) Buyback of shares by a company
(vi) The appointment of an independent director shall be approved by the …………….. .
(a) Board meeting
(b) General Meeting
(c) Registrar of Companies
(d) Central Government
Answer:
(b) General Meeting
(vii) The sweat equity shares shall be locked in for a period of …………………. years from the date of allotment.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(a) One
(viii) The following is the disadvantage of business ethics:
(a) Through increasing morale and trust business can increase their market share
(b) Publicity due to well and ethical performance
(c) Acceptance of products of the company by the public
(d) Diversity in achievements (June 2018, 1 x 10 = 10 marks)
Answer:
(b) Publicity due to well and ethical performance
Question 22.
(b) Match the statement in column I with the most appropriate statement in Column II:
| Column I | Column II |
| 1. Legal Representative of the contractor | (A) Welfare measures taken in a factory. |
| 2. Where the seller makes a false representation and buyer relies on it. | (B) Certificate of incorporation |
| 3. Creches | (C) Extract of the annual return of a company. |
| 4. MGT – 9 | (D) Exception to the Doctrine of Caveat Emptor. |
| 5. Form No. INC – 11 | (E) He who is not the Principal Employer. |
(June 2018, 1 x 5 = 5 marks)
Answer:
| Column I | Column II |
| 1. Legal Representative of the contractor | (E) He who is not the Principal Employer. |
| 2. Where the seller makes a false representation and buyer relies on it. | (D) Exception to the Doctrine of Caveat Emptor. |
| 3. Creches | (A) Welfare measures taken in a factory. |
| 4. MGT – 9 | (C) Extract of the annual return of a company. |
| 5. Form No. INC – 11 | (B) Certificate of incorporation |
Question 23.
(c) State whether the following statements are True or False (you may write only the Roman numeral and whether True or False without copying the statements into the answer books):
(i) Gratuitous bailment continues even after the death of either of the bailor or bailee.
Answer:
False
(ii) A holder is not having right to duplicate of lost bill before it is overdue.
Answer:
False
(iii) Fine may be recovered from the employed person by installments
Answer:
False
(iv) Share certificate is a negotiable instrument.
Answer:
False
(v) The businessmen who do not follow business ethics will have short-term success, but they will fail in the long run. (June 2018, 1 x 5 = 5 marks)
Answer:
True.
Question 24.
(d) Fill in the blanks suitably (you may write only the Roman numeral and the content filling the blanks):
(i) The liability of surety arises only when the principal debtor fails to pay the debt to the ………………….. .
Answer:
Creditor
(ii) Goods to be manufactured or produced or acquired by the seller after making of the contract of sale is called ………………………… good.
Answer:
Future
(iii) If there is a dispute as to the amount of gratuity payable to the employee, the employer shall deposit the gratuity with the …………………….. .
Answer:
Controlling authority
(iv) The time limit for registration of charge is …………………… days from the date of creation of charge.
Answer:
30 days
(v) The ethical operation of a company is directly related to ………………….. in both short and long term. (June 2018, 1x 5 = 5 marks)
Answer:
Profitability.
Question 25.
Answer all the following questions:
Choose the correct answer from the given alternatives (you may write only the Roman numeral and the alphabet chosen for your answer):
(a) Multiple Choice Questions:
(i) A proposal may be revoked at any time before
(a) the communication of acceptance
(b) the payment of consideration
(c) signing the agreement.
(d) execution of the proposal
Answer:
(a) The communication of acceptance
(ii) Which of the following is not to be taken care while admitting a new partner?
(a) Computation of new profit-sharing ratio and sacrifice ratio
(b) Accounting treatment of goodwill
(c) Professional qualification of admitting partner
(d) Revaluation of assets and liabilities
Answer:
(c) Professional qualification of admitting partner
(iii) Where goods are delivered to the buyer and he refuses to accept them, the buyer is not bound to
(a) retain them with him
(b) look – after the goods
(c) return them to the seller
(d) store them in his godown
Answer:
(c) Return them to the seller
(iv) No child shall be allowed to work in a factory unless he has completed his
(a) 12th year
(b) 14th year
(c) 16th year
(d) 18th year
Answer:
(b) 14th year
(v) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than
(a) three years
(b) five years
(c) seven years
(d) ten years
Answer:
(b) Five years
(vi) The Employees’ State Insurance Corporation is
(a) Hindu Undivided Family –
(b) Local Authority
(c) Charitable Institution
(d) Body Corporate
Answer:
(d) Body Corporate
(vii) The annual return of an OPC shall be signed by the company secretary or where there is no company secretary, by the
(a) Senior executive of the company
(b) Auditor of the company
(c) Director of the company
(d) Advocate of the company
Answer:
(c) Director of the company
(viii) If there is any misstatement in the prospectus then it would attract the liability on
(a) The printer
(b) The issuer
(c) The publisher
(d) The proof-reader
Answer:
(b) The issuer
(ix) Every company limited by shares shall keep and maintain the Register of Members in Form No.
(a) MGT-1
(b) MGT-3
(c) MGT-7
(d) MGT-12
Answer:
(a) MGT-1
(x) Ethics are the set of moral principles that guide a person’s
(a) Behaviour
(b) Philosophy
(c) Religion
(d) Profession (Dec 2018, 1 x 10 = marks)
Answer:
(a) Behaviour
Question 26.
(b) Match and Pair:
| Column I | Column II |
| (1) Wagering contract | (A) Voting through electronics means |
| (2) Coercion | (B) War, animal rights and capital punishment |
| (3) Consensus ad-idem’ | (C) Committing any act forbidden by the Indian Penal Code |
| (4) Section 108 of Companies Act, 2013 | (D) Identity of minds |
| (5) Applied ethics | (E) Promise to pay ₹ 1,000 if it rains today |
(Dec 2018, 1 x 5 = 5 marks)
Answer:
| Column I | Column II |
| (1) Wagering contract | (E) Promise to pay ₹ 1,000 if it rains today |
| (2) Coercion | (C) Committing any act forbidden |
| (3) by the Indian Penal Code Consensus ad-idem | (D) Identity of minds |
| (4) Section 108 of Companies Act, | (A) Voting through Electronics 2013 means |
| (5) Applied ethics | (B) War, animal rights and capital punishment |
Question 27.
(c) State whether the following statements are True or False
(i) Goods to be manufactured or produced or acquired by the seller after making of the contract of sale are called future goods.
Answer:
True
(ii) The first endorsement of an instrument can be made by the Banker.
Answer:
False
(iii) Payment of Gratuity Act, 1972 applies to every shop and establishment employing seven or more persons.
Answer:
False
(iv) In case of e-voting, notice shall be sent as attachment in Word file.
Answer:
False
(v) Ethics is a requirement for human life. (Dec 2018, 1 x 5 = 5 marks)
Answer:
True
Question 28.
(d) Fill in the blanks:
(i) The dishonor of the instrument may be due to Non-acceptance and ………………….. .
Answer:
Non-payment
(ii) The term of the office of the representative members of Medical Benefit Council shall be ………………….. years from the date on which the appointment is notified.
Answer:
Four
(iii) The company shall have the ………………….. to specify the lock-in-period for the shares issued in pursuant of exercise such option.
Answer:
Freedom
(iv) A director may resign from his office by giving a notice in writing to the ………………….. .
Answer:
Company
(v) The Seven Principles of Public Life were set out by ………………………….. for the first time in the year 1995. (Dec 2018, 1 x 5 = 5 marks)
Answer:
Lord Nolan
Question 29.
(c) Answer all the following questions:
(a) Choose the correct answer from the given alternatives (you may write only the Roman numeral and the alphabet chosen for your answer):
(i) Anu threatens to kidnap Binu’s daughter if she does not sell her house worth ₹ 90 Lakh to her for ₹ 20 Lakh. This Contract is void due to –
(a) inadequacy of Consideration.
(b) absence of Free Consent.
(c) incompetence of Parties.
(d) None of the above.
Answer:
(b) absence of Free Consent.
(ii) The Latin Maxim “Nemo Dat Quod non-Habet” means
(a) no man can pass a better title than he has.
(b) let the Buyer beware.
(c) no consideration – No contract.
(d) ignorance of the law is no excuse.
Answer:
(a) no man can pass a better title than he has.
(iii) As per the RBI Act, which of the following Negotiable Instruments can be payable to the bearer on demand?
(a) Cheque
(b) Hundi
(c) Bank Draft
(d) Promissory Note.
Answer:
(a) Cheque
(iv) When a partnership firm is continued even after the expiry of fixed term, it is called
(a) Partnership at Will
(b) Perpetual Partnership
(c) Fixed Partnership
(d) Particular Partnership
Answer:
(a) Partnership at Will
(v) No female child shall be allowed to work in any factory except between ………………… .
(a) 8 AM to 7 PM
(b) 6 PM to 6 AM
(c) 6 AM to 7 AM
(d) 10 PM to 5 AM
Answer:
(a) 8 AM to 7 PM
(vi) In the case of a private company mention the number of members personally present to form the quorum of a meeting of the company.
(a) One member
(b) Two members
(c) Three members
(d) Four members
Answer:
(b) Two members
(vii) Which of the following is not a valid medium of sending notice to all shareholders?
(a) By registered post or speed post
(b) Through public advertisement
(c) Through registered email-id
(d) Through courier service
Answer:
(b) Through public advertisement
(viii) If any default is made in filing refund of money, the company and every officer, who is in default shall be liable to a penalty maximum up to
(a) ₹ 50,000
(b) ₹ 75000
(c) ₹ 1,00,000
(d) ₹ 1,25,000
Answer:
(c) ₹ 1,00,000
(ix) Value chain as a strategic framework for analysis of competitive advantage was promoted by
(a) Peter Drucker
(b) F. W. Taylor
(c) Michael Porter
(d) Tom Peters (June 2019, 1 x 9 = 9 marks)
Answer:
(c) Michael Porter
Question 30.
(b) Match and Pair:
| Column I | Column II |
| 1. Occupier | A. purchases goods from S, he has no intention of paying for it. |
| 2. Section 92 of the Companies Act, 2013 | B. Annual Return. |
| 3. Metaethics | C. Person having ultimate control |
| 4. Fraud | D. Control of at least 20 percent of total share capital |
| 5. Significant influence | E. Nature of moral judgment. |
(June 2019, 1 x 5 = 5 marks)
Answer:
| Column I | Column II |
| 1. Occupier | (C) Person having ultimate control |
| 2. Section 92 of the Companies Act, 2013 | (b) Annual Return |
| 3. Metaethics | (e) Nature of moral judgement |
| 4. Fraud | (a) Purchases goods from S, he has no intention of paying for it. |
| 5. Significant influence | (d) Control of at least 20 percent of total share capital |
Question 31.
(c) State whether the following statements are True or False:-
(i) An agreement which is impossible is void.
Answer:
True
(ii) In case of expulsion of a partner, the provisions of retired partners will be applicable to such expelled partner.
Answer:
True
(iii) Sickness benefit is paid up to a maximum day of 60 days in a year.
Answer:
False
(iv) A director in the whole time employment of the Company is called Whole full-time director.
Answer:
True
(v) Contribution to pension scheme is recoverable when employee crosses 58 years of age. (June 2019, 1 x 5 = 5 marks)
Answer:
False.
Question 32.
(d) Fill in the blanks:
(i) When the consent is caused by ……………………….., the agreement is voidable at the option of the party whose consent was so caused.
Answer:
under influence
(ii) All payments of wages shall be made on a …………………. day.
Answer:
working
(iii) Whenever a company makes any allotment of securities, ¡t shall file a return of allotment with the Registrar within ……………………. days of allotment.
Answer:
30
(iv) The application for the purpose of Alteration of Articles ¡s to be filed in Form No. …………………….. .
Answer:
INC – 27
(v) Business ethics must safeguard different rights of the …………………… . (June 2019, 1 x5=5 marks)
Answer:
consumers.
Question 33.
Answer all the following questions:
(a) Choose the correct answer from the given alternatives (you may write only the Roman numeral and the alphabet chosen for your answer):
(i) A person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it, he is capable of
(a) listening to it
(b) hearing it
(c) understanding it
(d) interpreting it
Answer:
(c) understanding it
(ii) Ankit agrees to pay Bina ₹ 1,500 if it rains today, otherwise Bina pays Ankit 2,000. This is a ………………………………….. .
(a) Gambling
(b) Wagering Agreement
(c) Valid agreement
(d) Speculation
Answer:
(b) Wagering Agreement
(iii) Writing of a person’s name on the face or back of an instrument or on a slip of paper attached to it is known as
(a) Endorsement
(b) Transfer
(c) Negotiation
(d) Transmission
Answer:
(a) Endorsement
(iv) Anusua and Shrita formed a partnership to undertake a construction of a shopping complex in New Delhi. This partnership is called
(a) Partnership at will
(b) Particular partnership
(c) Unlimited partnership
(d) Partnership with undefined mission
Answer:
(b) Particular partnership
(v) Every employee shall be entitled to receive bonus from his employer in
(a) a financial year
(b) an accounting year
(c) a calendar year
(d) a manufacturing year
Answer:
(b) an accounting year
(vi) The annual return of an OPC shall be signed by
(a) the company secretary
(b) the director
(c) the chief accountant
(d) the auditor
Answer:
(a) the company secretary
(vii) The minimum age limit for appointment of managing director and the whole time director is
(a) 18 years
(b) 21 years
(c) 25 years
(d) 30 years
Answer:
(b) 21 years
(viii) A company cannot remove a director-appointed
(a) at the annual general meeting
(b) at the extraordinary general meeting
(c) by the promoter
(d) by the tribunal
Answer:
(d) by the tribunal
(ix) Moral management requires ethical
(a) producer
(b) leadership
(c) market
(d) customer (Dec 2019, 1 x 9=9 marks)
Answer:
(b) leadership
Question 34.
(b) Match and Pair:
| Column I | Column II |
| 1. Right of lien | (a) Industrial Establishment |
| 2. Certificate of Incorporation | (b) Minimum rates of wages have been fixed |
| 3. Lord Nolan | (c) Keep the goods in his possession |
| 4. Plantation | (d) Seven principles of public life |
| 5. Cost of living index number | (e) Form No. INC-11 |
(Dec 2019, 5 marks)
Answer:
| Column I | Column II |
| 1. Right of lien | (c) Keep the goods in his possession |
| 2. Certificate of Incorporation | (e) Form No. INC – 11 |
| 3. Lord Nolan | (d) Seven principles of public life |
| 4. Plantation | (a) Industrial Establishment |
| 5. Cost of living index number | (b) Minimum rates of wages have been fixed |
Question 35.
(c) State whether the following statements are True or False:
(i) A promise in return for promise means Cross promises.
Answer:
False
(ii) Section 65 provides that me Central Government shall appoint, one or more Inspectors to investigate the affairs of a LLP.
Answer:
False
(iii) The information Memorandum shall be deemed to be a Red herring prospectus.
Answer:
False
(iv) A holder of depository receipts may become a member of the company.
Answer:
True
(v) Value chain as a strategic framework for analysis of competitive advantage was promoted by Peter Drucker. (Dec 2019, 5 marks)
Answer:
False
Question 36.
(d) Fill in the blanks:
(i) Section 92 of the Companies Act provides that every company shall prepare an Annual. Return in Form No …………………. .
Answer:
MGT-7
(ii) No fine shall be imposed on any employed person who is under the age of ……………….. .
Answer:
15 years
(iii) The EST Act, 1948 is the first major legislation on …………………. security for the employees in India.
Answer:
Social
(iv) A company whose principal business is the acquisition of shares, debentures or other securities is termed as …………………… company.
Answer:
Investment
(v) ………………… is the principles and standards that determine acceptable conduct in business organizations. (Dec 2019, 5 marks)
Answer:
Business Ethics
Question 37.
The phrases ‘business ethics and corporate ethics’ are often used to describe the application of ethical values to
(1) Business activities
(2) Make businessmen spiritual
(3) Nation building
(4) Democratize corporate (Dec 2021, 1 mark)
Answer:
(1) Business activities
Question 38.
An individual shall give his consent to become a designated partner in
(1) Form-3
(2) Form- 10
(3) Form-4
(4) Form- 9 (Dec 2021, 1 mark)
Answer:
(4) Form – 9
Question 39.
The annual return of an OPC shall be signed by the company secretary or where there is no company secretary, by the
(1) Auditor of the company
(2) Advocate of the company
(3) Director of the company
(4) Senior executive of the company (Dec 2021, 1 mark)
Answer:
(3) Director of the company
Question 40.
Value chain as a strategic framework for analysis of competitive advantage was promoted by
(1) Tom Harrison
(2) Peter Drucker.
(3) Michael Porter
(4) F. W. Taylor (Dec 2021,1 mark)
Answer:
(3) Michael Porter
Question 41.
In case of a sale by auction, the sale may be notified to be subject to a
(1) Recovery price
(2) Cost price
(3) Market price
(4) Reserved price (Dec 2021, 1 mark)
Answer:
(4) Reserved price
Question 42.
In which one of the following cases an agreement without consideration is void
(1) Gift actually made
(2) Saie of property
(3) Creation of agency
(4) Charitable subscription (Dec 2021, 1 mark)
Answer:
(2) Sale of property
Question 43.
In case of a private company, mention the number of members personally present to form the quorum of a meeting of the company.
(1) Two members,
(2) Four members
(3) One member
(4) Three members (Dec 2021, 1 mark)
Answer:
(1) Two members
Question 44.
The registered office shall be opened within ………………… from the date of incorporation of the company.
(1) 15days
(2) 60 days
(3) 90 days
(4) 30 days (Dec 2021, 1 mark)
Answer:
Answer:
(4) 30 days
Question 45.
Every occupier shall ensure the health, safety and welfare of all workers
(1) While employer desires so
(2) Till lifetime
(3) Till they are employed with the factory
(4) While they are at work in the factory (Dec 2021, 1 mark)
Answer:
(4) While they are at work in the factory
Question 46.
A new partner may be admitted in a partnership firm either for the increase of capital of the firm or to strengthen the
(1) Production of the firm
(2) Management of the firm
(3) Profit share of the firm
(4) Manpower of the firm (Dec 2021, 1 mark)
Answer:
(2) Management of the firm.
Question 47.
Every employee should be entitled to receive bonus from his employer in an accounting year ¡t he has worked for not less than
(1) Twenty working days
(2) Thirty working days
(3) Ten working days
(4) Forty working days (Dec 2021, 1 mark)
Answer:
(2) Thirty working days
Question 48.
An instrument of the proxy shall be deposited with the registered office of the company before ………………….. hours of the conduct of the meeting.
(1)21 hours
(2) 60 hours
(3) 7 hours
(4) 48 hours (Dec 2021, 1 mark)
Answer:
(4) 48 hours
Question 49.
A general meeting may be called after giving a shorter notice if consent is given by not less than …………………….. of the members entitled to vote at such meeting.
(1) 95%
(2) 45%
(3) 55%
(4) 65% (Dec 2021, 1 mark)
Answer:
(1) 95%
Question 50.
Presentation for acceptance of the bill may not be excused in the following cases
(1) Where the drawee cannot be found with reasonable efforts
(2) Where the drawee is insolvent
(3) Where the drawee is a fictitious person
(4) Where the drawee is in a special economic zone (SEZ) (Dec 2021, 1 mark)
Answer:
(4) Where the drawee is in a special economic zone (SEZ)
Question 51.
The office of a director shall become vacant In case he absents himself from all the meetings of the Board of Directors held during a period of ………………….. with or without seeking leave of absence of the Board.
(1) 6 months
(2) 3 months
(3) 9 months
(4) 12 months (Dec 2021, 1 mark)
Answer:
(4) 12 months
Question 52.
Meaning of the Latin word indorsum’ is
(1) Under the law
(2) Inside the box
(3) Upon the back
(4) With the bearer (Dec 2021, 1 mark)
Answer:
(3) Upon the back
Question 53.
Which of the following is not a valid method of voting in a meeting of a company?
(1) Voting through electronic means
(2) Voting by showing hands
(3) Voting by-poll
(4) Voting by creating sounds (Dec 2021, 1 mark)
Answer:
(4) Voting by creating sounds
Question 54.
Permanent disablement benefit is paid at the rate of wages.
(1) 90%
(2) 79%
(3) 120%
(4) 100%
Answer: (Dec 2021, 1 mark)
(1) 90%
Question 55.
The particulars of the issue of preference shareholders shall be noted in the ………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Register of members,
Question 56.
Where a person provides labour or service to another for remuneration which is less than the minimum wage, such labour is called Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Forced labour
Question 57.
The seven principles of public life were set out by …………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Lord Nolan
Question 58.
Annual return under the Payment of Bonus Act shall be filed by every employer on or before …………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
1st February in each year.
Question 59.
The dishonor of the instrument may be due to ……………….. and ………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Non-payment and non-acceptance
Question 60.
The seller of the goods is deemed to be …………………………. when the whole of the price has not been paid. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Unpaid seller
Question 61.
Occupier of every factory shall provide and maintain suitable room or rooms for the use of the children under the age of six years of women workers where the number of such women workers exceed. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
30
Question 62.
A nominal partner can be of two types – Partner by estoppels and Partner by …………………. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Holding out
Question 63.
When the drawee accepts the bills subject to qualification is known as ……………….. Which word(s) according to you most appropriately fill(s) the above blank? (2021 – Dec 1 mark)
Answer:
2021 – Qualified acceptance
Question 64.
A LLP formed, incorporated, or registered outside India which establishes a place of business within India is called ……………………. Which word(s) according to you most appropriately fill(s) the above blank?
(Dec 2021, 1 mark)
Answer:
Foreign LLP
Question 65.
A proper foundation of ethics requires a standard of ………………… to which all goals and actions can be compared to. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Value
Question 66.
Section 92 of the Companies Act provides that every company shall prepare an Annual Return in Form No ……………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
MGT-7
Question 67.
A shareholder holding shares of nominal value not more than 20,000 is called ………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer: .
Small shareholder
Question 68.
A representation when wrongly made either innocently or unintentionally is a ………………… Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Mis – representation
Question 69.
A company whose principal business is the acquisition of shares, debentures or other securities is called ………………… company. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Investment
Question 70.
The term of office of a member of the standing committee under the ESI Act shall be ……………. years from the date of election notification. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
Two
Question 71.
No prospectus shall be valid ¡titis issued more than …………….. days after the date on which a copy thereof is delivered to the Registrar. Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
90
Question 72.
The Regional Director shall communicate the confirmation of shifting of registered office within ………………….. of receipt of the application Which word(s) according to you most appropriately fill(s) the above blank? (Dec 2021, 1 mark)
Answer:
30 days
Question 73.
What should be the maximum time gap between two annual general meetings of a company? (Dec 2021, 1 mark)
Answer:
Not more than 15 months.