B.LAW-II-MCQ

KEEP UPGRADINNG YOUR KNOWLEDGE

BBA Sem- VI
Subject:- Business Law-II
1	Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?
	A.	Section 5	B.	Section 6
	C.	Section 4	D.	Section 13
	Answer :-A
2	Which of the followings are not the Negotiable Instruments as defined by the Statute…
	A.	Promissory Note	B.	Bill of Exchange
	C.	Cheques	D.	Banker’s Note
	Answer :- D
3	Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882…
	A.	Section 90	B.	Section 91
	C.	Section 92	D.	Section 93
	Answer :-C
4	If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
	A.	24	B.	12
	C.	36	D.	48
	Answer :- D
5	Section 6 of the Negotiable Instruments Act defines ___
	A.	Cheque	B.	Bill of Exchange
	C.	Dishonour by non-payment	D.	Promissory Notes
	Answer :-A
6	If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __
	A.	All the parties except minor	B.	All the parties including minor
	C.	Minor Only	D.	Minor and Only Drawer
	Answer :- A
7	_______ means ‘something legally transferable from one person to another for a consideration’.
	A.	Instrument	B.	Negotiable
	C.	Negotiable Instruments	D.	all of the above
	Answer :-B
8	______ means ‘ a written document by which some legal rights are created in favor of some person’
	A.	Instrument	B.	Negotiable
	C.	Negotiable Instruments	D.	all of the above
	Answer :- A
9	Negotiable instrument means a promissory note, bill of exchange or cheque, payable to
	A.	Bearer	B.	order
	C.	either to bearer or order	D.	neither bearer nor order
	Answer :-C
10	A negotiable instrument is freely transferable, by delivery if it is a/an ______________ instrument.
	A.	order	B.	bearer
	C.	both a & B	D.	None of the above
	Answer :- B
11	A negotiable instrument is freely transferable, by endorsement if it is a/an ____________ instrument.
	A.	order	B.	bearer
	C.	both a & b	D.	None of the above
	Answer :-A
12	The transferee of a negotiable instrument is the one
	A.	who transfer the instrument	B.	on whose name it is transferred
	C.	who en chases it	D.	none of the above
	Answer :- B
13	The transferor of a negotiable instrument is the one
	A.	who transfer the instrumen	B.	who en chases it
	C.		D.	none of the above
	Answer :-A
14	The instrument must be taken in good faith and with a
	A.	Interest	B.	consideration
	C.	legal relation	D.	business motive
	Answer :- B
15	when an instrument has been lost it is presumed that it was ____________
	A.	expired	B.	duly stamped
	C.	stolen	D.	misplaced
	Answer :-B
16	_________ an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :- A
17	______________ is an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person, to a pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :-B
18	The number of parties to a bill of exchange is _______
	A.	2	B.	4
	C.	6	D.	3
	Answer :- D
19	The number of parties to a Promissory Note is _______
	A.	2	B.	4
	C.	6	D.	3
	Answer :-A
20	Sec. 4 of negotiable instruments Act 1880 deals with
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :- A
21	Sec. 5 of negotiable instruments Act 1880 deals with
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :-B
22	Sec. 6 of negotiable instruments Act 1880 deals with
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :- C
23	The parties of a bill of exchange are
	A.	drawe acceptor and payee	B.	banker drawee and payee
	C.	banker acceptor and payee	D.	banker drawer and payee
	Answer :-A
24	Acceptance is _________________ in case of bill of exchange
	A.	compulsory	B.	optional
	C.	not compulsory	D.	adequate
	Answer :- A
25	Liability of maker is __________ in case of bill of exchange
	A.	primary	B.	unlimited
	C.	unconditional	D.	secondary
	Answer :-D
26	__________ is an order to pay the third party
	A.	Promissory Note	B.	bill of exchange
	C.	Cheque	D.	none of the above
	Answer :- A
27	A Promissory Note or Bill of Exchange can be made payable
	A.	On demand	B.	On a specific date
	C.	After a specified period – months or days	D.	all of the above
	Answer :-D
28	To calculate the maturity date of a negotiable instrument the drawing date to be ___for counting
	A.	included	B.	considered
	C.	excluded	D.	non of the above
	Answer :- C
29	If the instrument is not ‘on demand’ ___________ days of grace is granted.
	A.	7	B.	5
	C.	3	D.	4
	Answer :-C
30	when the is crossed with Two parallel lines or with word ‘& Co.’ etc. this crossing is known as
	A.	general crossing	B.	special crossing
	C.	restrictive crossing	D.	none of the above
	Answer :- A
31	when the is crossed with Two parallel lines or with ‘A/c payee only.’ etc. this crossing is known as
	A.	general crossing	B.	special crossing
	C.	restrictive crossing	D.	none of the above
	Answer :-C
32	When bank has reason to believe that the title of the presenter is defective , then the cheque will be
	A.	dishonored	B.	cancelled
	C.	stalled	D.	countermanded
	Answer :- A
33	A holder in due course will get protected from earlier defect of
	A.	no consideration	B.	conditional delivery
	C.	unlawful means	D.	all of the above
	Answer :-D
34	____of an instrument means a person legally entitled to possess and receive in his own name
	A.	owner	B.	maker
	C.	holder	D.	receiver
	Answer :- C
35	‘Something legally transferable from one person to another for a consideration’ is known as
	A.	Endorsement	B.	bill of exchange
	C.	promissory note	D.	negotiation
	Answer :-D
36	‘ A written document by which some legal rights are created in favour of some person’
	A.	Endorsement	B.	Instrument
	C.	promissory note	D.	negotiation
	Answer :- B
37	A negotiable instrument means a _______________ payable either to order or to bearer.
	A.	Promissory note	B.	Bill of exchange
	C.	Cheque	D.	All of the above
	Answer :-D
38	A Bill of Exchange is:
	A.	A conditional promise to pay	B.	An unconditional order to pay
	C.	An unconditional promise to pay	D.	A conditional order to pay
	Answer :- B
39	The essential conditions for the payment for honour include
	A.	A. Bill must have been dishonoured for non- payment	B.	B. Bill must have been noted or protested for non-payment
	C.	C. Person paying or his agent must declare before the notary public, the party for whose honour he accepts	D.	D. All of the above
	Answer :-D
40	Dishonor of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882…
	A.	Section 90	B.	Section 92
	C.	Section 93	D.	Section 94
	Answer :- B
41	Section 6 of Negotiable Instruments Act defines ___
	A.	Cheque	B.	Bill of Exchange
	C.	Promissory Notes	D.	Dishonour by non-payment
	Answer :-A
42	A assures to B for C, for C to pay a sum of Rs. 5,00,000 to B. In case of default, A shall discharge the entire liability to B. In the following case C is :
	A.	Credito	B.	Principal Debtor
	C.	Surety	D.	General Debtor
	Answer :- A
43	Cheque doesn’t require any stamping.
	A.	True	B.	False
	C.	Partly true	D.	Partly false
	Answer :-A
44	Bill of exchange and Promissory Note is required to be made on a stamp paper.
	A.	True	B.	False
	C.	Partly true	D.	Partly false
	Answer :- A
45	The dishonour of cheque is punishable if it is dishonoured due to__________.
	A.	Insufficient Balance in drawers account	B.	Account closed by drawer
	C.	Stop payment by drawer	D.	All of these
	Answer :-D
46	The Negotiation of instrument to any person receiving it by paying consideration, before maturity & in good faith is termed as_______.
	A.	Holder	B.	Holder In due course
	C.	(a) & (b)	D.	None of Non of above
	Answer :- B
47	The notice of dishonour of cheque is to be given with in ______ of its knowledge to receiver.
	A.	10 days	B.	30 days
	C.	(a) & (b)	D.	15 days
	Answer :-B
48	The criminal complaint for dishonor of cheque is to be filled in court within______ofthe Drawer failing to pay
	A.	30 days	B.	1 month
	C.	(a) & (b)	D.	None of them
	Answer :- B
49	By the notice for dishonour of cheque the Drawer is to be granted _____ time for payment
	A.	10 days	B.	30 days
	C.	7 days	D.	15 days
	Answer :-D
50	The undertaking contained in a promissory note, to pay a certain sum of money is
	A.	Conditional	B.	Unconditional
	C.	May be conditional or unconditional depending upon the circumstances	D.	None of the above
	Answer :- B
51	A bill of exchange contains a/an
	A.	Unconditional undertaking	B.	Unconditional order
	C.	Conditional undertaking	D.	Conditional order.
	Answer :-B
52	If an instrument may be construed either as a promissory note or bill of exchange, it is
	A.	A valid instrument	B.	An ambiguous instrument
	C.	A returnable instrument	D.	none of the above
	Answer :- B
53	At sight' under section 21 of the Negotiable Instrument Act, 1881, means
	A.	On presentation	B.	On demand
	C.	On coming into vision	D.	none of the above
	Answer :-B
54	In a promissory note, the amount of money payable
	A.	Must be certain	B.	May be certain or uncertain
	C.	Is usually uncertain	D.	none of the above.
	Answer :- A
55	An authority to draw bills of exchange
	A.	Itself implies an authority to indorse	B.	Does not itself imply an authority to indorse
	C.	Sometimes imply an authority to indorse	D.	none of the above
	Answer :-B
56	The term 'legal representative' in section 29 of the Negotiable Instruments Act, 1881
	A.	Includes legal heirs	B.	Includes Authorised agents
	C.	Includes executors	D.	All of them
	Answer :- D
57	Can a drawer escape from his liability?
	A.	No, a drawer can never escape from his liability	B.	Yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to that effect
	C.	In certain cases although he can escape from his liability but always he cannot so escape	D.	None of the above.
	Answer :-B
58	The Drawer shall be held ______ under section 138 if he has stopped payment after issuing the cheque.
	A.	Not liable	B.	liable
	C.	not sure	D.	Both (a) & (b)
	Answer :- B
59	A bill is drawn payable to 'A' or order. 'A' indorses it to 'B', the endorsement not containing the words '"or order" or any equivalent words. Can 'B' negotiate the instrument?
	A.	Yes	B.	no
	C.	not always	D.	none of the above
	Answer :-A
60	Where an endorser of an instrument excludes his liability and afterwards becomes the holder of the instrument, who are liable to him?
	A.	No one is liable to him	B.	All intermediate indorsers are liable to him
	C.	Only the immediate prior indorser is liable to him	D.	None of the above.
	Answer :- B
61	Can the legal representative of a deceased person negotiate a promissory note, bill of exchange or cheque payable to order by delivery only which was indorsed by the deceased but not delivered by him?
	A.	Yes, the legal representative can negotiate the instrument by delivery only	B.	No, the legal representative cannot negotiable an instrument by delivery only. He must re-indorse and deliver the instrument for negotiating it
	C.	No, as indorsement was not completed by delivery.	D.	None of the above
	Answer :-C
62	Can the holder of a negotiable instrument indorsed in blank convert the endorsement into an endorsement in full?
	A.	No	B.	yes
	C.	Both (a) & (b)	D.	none of the above.
	Answer :- B
63	The endorsement of a negotiable instrument is followed by delivery
	A.	Yes	B.	no
	C.	Both (a) & (b)	D.	none of the above.
	Answer :-A
64	When presentment for payment is to be made under section 65 of the Act?
	A.	Presentment for payment can be made at any reasonable time.	B.	Presentment for payment must be made during the usual hours of business and, if at a banker's, within banking hours
	C.	There is no such stipulation on the time for presentment.	D.	None of the above.
	Answer :- B
65	Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made
	A.	After its maturity	B.	before its maturity
	C.	At its maturity	D.	none of the above
	Answer :-B
66	Which of the following is not a justified ground of dishonouring of cheque by banker?
	A.	The cheque is post-dated and presented before the ostensible date	B.	The banker had sufficient funds, but the funds are not properly applicable towards the payment of the cheque
	C.	If the cheque is altered in parts	D.	If the cheque is duly presented.
	Answer :-
67	When the acceptor of an instrument is also a drawer, notice of dishonour is
	A.	Necessary	B.	Not necessary
	C.	Not always necessary but under certain circumstances mentioned in section 98A of the Act, it is a must	D.	None of the above
	Answer :-B
68	Under section 97, of the Negotiable Instruments Act when the party to whom notice of dishonour is dispatched is dead, but the party despatching the notice is ignorant of his death, the notice is
	A.	Sufficient	B.	Not sufficient
	C.	Null and void and has no effect	D.	None of the above
	Answer :-
69	Dishonour by non-acceptance takes place
	A.	drawee is not found	B.	drawee is incompetent
	C.	Drawee is insolvent	D.	All of the above.
	Answer :-D
70	When a cheque has become invalid because of the expiry of the stipulated period, can itbe re-validated by the drawer by alteration of dates?
	A.	Yes, the drawer can re-validate the cheque by alteration of dates	B.	No, the drawer cannot re-validate it by so alteration of dates
	C.	Although the drawer cannot revalidate the cheque, but the drawee can at his discretion revaliate it	D.	None of the above.
	Answer :- B
71	A draws a bill on B for ₹500 payable to the order of A. B accepts the bill, but subsequently dishonours it by non-payment. A sues B on the bill. B proves that it was accepted for value as to ₹400, and as an accommodation to the plaintiff as to the residue. Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the following amount:
	A.	900	B.	500
	C.	400	D.	100
	Answer :-C
72	M drew a cheque amounting to Rs. 2 lakh payable to N and subsequently delivered to him. After receipt of cheque N endorsed the same to C but kept it in his safe locker. After sometime, N died, and P found the cheque in N’s safe locker. State the nature of the Instrument as amounting to indorsement under the NI Act,1881.
	A.	Yes its an endorsement, as P becomes the holder of the cheque that he found in the N’s safe locker.	B.	No, its not an endorsement, as P does not become the holder of the cheque
	C.	Yes , its an endorsement, as P was a ultimate custodian of the cheque	D.	No, its not an endorsement, as N endorsed it to C and not to the P.
	Answer :- B
73	While drawing a bill of exchange, a person whose name is given in addition to the drawee who can be resorted in case of need, is called
	A.	Acceptor	B.	Acceptor for honour
	C.	Drawee in case of need	D.	Drawer
	Answer :-C
74	A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without consideration. C transferred it to D for value. Decide as per the provisions of the Negotiable Instruments Act, 1881-
	A.	D can sue only A	B.	D can sue A or B only
	C.	D can sue any of the parties A, B or C	D.	D cannot sue any of the parties A, B or C
	Answer :- C
75	As per the Negotiable Instruments Act, 1881, 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 theK
	A.	said public holiday	B.	5 days succeeding public holiday
	C.	next succeeding business day	D.	next preceding business day
	Answer :-D
76	A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:
	A.	M is liable to X	B.	X can proceed against A
	C.	No one is liable in this case	D.	M can proceed against A
	Answer :- B
77	Section 12 of Companies Act 1956, deals with
	A.	Incorporation	B.	Share capital
	C.	Number of Directors	D.	Share holders
	Answer :-A
78	Minimum number of members required to apply for incorporation certificate in a public ltd company is
	A.	3	B.	2
	C.	7	D.	50
	Answer :- C
79	The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
	A.	Controller	B.	registrar
	C.	Governor	D.	registration officer
	Answer :-B
80	The address of the registered office of the company must be notified to the registrar within _________ days of registration, if it is not done at the time of incorporation
	A.	15	B.	30
	C.	60	D.	45
	Answer :- B
81	Number of clauses in Memorandum of Association is
	A.	5	B.	6
	C.	7	D.	8
	Answer :-B
82	Which of the following is not a clause of memorandum of association
	A.	capital	B.	subscription
	C.	directors	D.	Name
	Answer :- C
83	If a company is instructed to change its name which resembles the name of an existing company then the company can change the name by
	A.	Passing a special resolution	B.	obtaining permission from central government
	C.	Passing an ordinary resolution	D.	Both a & b
	Answer :-C
84	“Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956
	A.	Separate legal entity	B.	Perpetual Succession
	C.	Capacity to sue	D.	None of the above
	Answer :- B
85	The liability of the members of the company can be limited by
	A.	Share	B.	Guarantee
	C.	Both a & b	D.	Neither a nor b
	Answer :-C
86	The shares of a _______________ company can be freely transferable
	A.	Private ltd	B.	Public ltd
	C.	Partnership	D.	all of the above
	Answer :- B
87	Number of documents to be submitted, by a public ltd company, to the registrar while applying for incorporation of the company is
	A.	3	B.	2
	C.	7	D.	50
	Answer :-B
88	The address of the registered office of the company must be notified to the registrar within _________ days of registration, if it is not done at the time of incorporation
	A.	15	B.	30
	C.	60	D.	45
	Answer :- B
89	Among the following which documents are not mandatory to be submitted to the registrar along with incorporation application by a private company.
	A.	Address of Registered office & undertaking	B.	Undertaking and statement of capital
	C.	statement of capital & list of directors	D.	list of directors and statement of capital
	Answer :-A
90	A statement of nominal capital must be given at the time of incorporation by the company when the share capital is less than
	A.	50 Lakh	B.	1 crore
	C.	10 Lakh	D.	25 Lakh
	Answer :- D
91	The articles of association needs to be signed by
	A.	all proposed directors	B.	registrar
	C.	subscribers of memorandum	D.	none of the above
	Answer :-C
92	The company will be considered as separate person and different from its members from the date (when the) _____________
	A.	start of business	B.	Apply for registration
	C.	receive incorporation certificate	D.	mentioned in certificate
	Answer :- D
93	___________ cannot give invitation to the public to subscribe for any shares in or debentures of the company
	A.	Subsidiary company	B.	Statutory Company
	C.	Private company	D.	Registered company
	Answer :-D
94	A Government Company means any company in which not less than 51% of the paid-up share capital is held by
	A.	Central Government	B.	State government
	C.	Both a & b	D.	Neither a nor b
	Answer :- C
95	A copy of the ________________ must accompany each from of application for shares offered to the public.
	A.	Memorandum of association	B.	Prospectus
	C.	Articles of association	D.	None of the above
	Answer :-B
96	The Prospectus must be issued to the public within ______________ days of its date
	A.	30	B.	60
	C.	90	D.	100
	Answer :- C
97	If the company can make arrangements for raising the capital privately so that pubic appeal is unnecessary, the company is required to prepare a _________________
	A.	Prospectus	B.	statement in lieu of Prospectus
	C.	certificate of Prospectus	D.	none of the above
	Answer :-B
98	The Prospectus must be issued to the public within ______________ days of its date
	A.	30	B.	60
	C.	90	D.	100
	Answer :- C
99	Par value of shares means the __________ value of the shares
	A.	Actual	B.	face
	C.	Market	D.	dividend
	Answer :-B
100	The dividend payable to ___________ share holders is payable on fixed figure or percent
	A.	Equity	B.	non preference
	C.	Preference	D.	all of the above
	Answer :- C
101	_____________ share capital has priority both in repayment of dividend as well as capital.
	A.	Equity	B.	non preference
	C.	Preference	D.	all of the above
	Answer :-C
102	For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________ amount
	A.	Profit	B.	Market value
	C.	dividend	D.	premium
	Answer :- D
103	Private company prohibits any invitation or acceptance of deposits from persons other than its ___________
	A.	Members	B.	directors
	C.	Partners	D.	banks
	Answer :-A
104	The company needs to obtain prior permision from central government when it changes the address of its registered office from
	A.	one city to another city	B.	with in the same city
	C.	one state to another	D.	one country to another country
	Answer :- C
105	which of the following company/companies are registered by the Companies Act, 2013?
	A.	Government Company	B.	Private Company
	C.	Public Company	D.	All of the above
	Answer :-D
106	A public company must have at least————- directors whereas a private company must have at least ——————-directors.
	A.	3;2	B.	2;3
	C.	2;5	D.	8;10
	Answer :- A
107	A subsidiary of a government company is also treated as a
	A.	Government Company	B.	Public Company
	C.	Private Company	D.	All of the above
	Answer :-A
108	The_____________ of a government company is appointed or reappointed by the Comptroller and Auditor General of India.
	A.	Auditor	B.	Company Secretary
	C.	Both (a) and (b)	D.	None of the above
	Answer :- A
109	Which of the following statement is false?
	A.	No legal formality is required to form a company.	B.	The shareholders of a company have limited liability.
	C.	A company can own property in its own name.	D.	A company is managed by the elected representatives of shareholders.
	Answer :-A
110	A is one who performs the preliminary duties necessary to bring a company into being and float it.
	A.	Auditor	B.	Promoter
	C.	Director	D.	Financer
	Answer :- B
111	The registered office clause of memorandum of association contains
	A.	The name of the state in which the registered office of the company is to be situated.	B.	The name of the city/town only and not that of the state.
	C.	The name of registrar of companies	D.	The complete postal address.
	Answer :-A
112	“One who undertakes to form a company with reference to a given object and set it going and who takes the necessary steps to accomplish that purpose
	A.	Promoter	B.	Directors
	C.	C.E.O.	D.	Board of Directors
	Answer :- A
113	Which of the following are the functions of a promoter?
	A.	Decides name of a company	B.	Nomination of directors
	C.	Settles the details of memorandum and articles	D.	All of these
	Answer :-
114	Which documents contains the constitution of a company?
	A.	Memorandum of Association	B.	Articles of Association
	C.	Both (a) and (b)	D.	None of these
	Answer :- A
115	Which documents contains the regulations relating to the internal management of a company?
	A.	Memorandum of Association	B.	Articles of Association
	C.	Both (a) and (b)	D.	None
	Answer :-C
116	The companies are regulated under .
	A.	Companies Act, 1596	B.	Companies Act, 1957
	C.	Indian Partnership Act,1932	D.	Companies Act, 2013
	Answer :- D
117	Company is managed by
	A.	Shareholders	B.	Board of Directors
	C.	Karta	D.	Both(a)&(b)
	Answer :-B
118	Partnership is governed by Partnership Act
	A.	1956	B.	1948
	C.	1932	D.	1982
	Answer :- C
119	Which is not a registered company
	A.	Company limited by share	B.	Company limited by guarantee
	C.	Both (a) & (b)	D.	None of the above
	Answer :-D
120	Public company shares are dealt in
	A.	Stock exchange	B.	Public
	C.	Market	D.	All of the above
	Answer :- A
121	Unlimited company may be subsequently converted into limited company
	A.	TRUE	B.	Partly true
	C.	FALSE	D.	None of the above
	Answer :-C
122	Government company comes under section
	A.	2(46)	B.	2(44)
	C.	2(43)	D.	2(45)
	Answer :- D
123	Foreign company must issue prospectus
	A.	True	B.	Partly true
	C.	FALSE	D.	None of these
	Answer :-A
124	Company’s memorandum & articles are public documents
	A.	TRUE	B.	FALSE
	C.	Partly True	D.	Partly False
	Answer :- A
125	Tables I includes articles of
	A.	Unlimited company having share capital	B.	Company limited by guarantee
	C.	Company limited by shares	D.	Public company
	Answer :-A
126	which one of the following is NOT an essential feature of a company?
	A.	Perpetual Succession	B.	Unlimited Liability
	C.	Separate Property	D.	Transferability of shares
	Answer :- B
127	Which of the following statement is NOT true regarding a private company?
	A.	It cannot invite public to subscribe to shares or debentures	B.	Restricts the right to transfer its share
	C.	At least five members are required to form a company	D.	It should have at least two directors
	Answer :-C
128	The auditor of a Government company is appointed by
	A.	Central Government	B.	Comptroller and Auditor General of India
	C.	Directors of the Company	D.	Shareholders of the Company
	Answer :- B
129	In case of a company limited by shares, the members are liable to the extent of
	A.	Nominal value of share	B.	Called up value of shares
	C.	They are personally liable	D.	None of the above
	Answer :-A
130	Government company is defined under which section of the Companies Act, 2013?
	A.	Sec. 2(45)	B.	Sec. 2(44)
	C.	Sec. 2(43)	D.	None of the above
	Answer :- A
131	Can issue of Prospectus compulsory for a company?
	A.	Yes	B.	No
	C.	Partly Yes	D.	Partly No
	Answer :-B
132	M/s XYZ Pvt. Ltd., is a Private Limited company desires to issue prospectus for public offer. Whether Company can do so?
	A.	Yes	B.	No
	C.	Partly Yes	D.	Partly No
	Answer :- B
133	……………..is a public offer made by a company to subscribe for its securities by the public through prospectus.
	A.	Initial Public offer/ Further Public Offer	B.	Offer for sale
	C.	Private Placement	D.	Right issue
	Answer :-A
134	Which of the following legislations regulate the public issue in India?
	A.	Companies Act 2013	B.	Securities (Contract) Regulation Act,1952
	C.	Securities and Exchange Board of India,1992	D.	All of the above
	Answer :- D
135	Variation of the terms of contract or objects in prospectus is mentioned in which of the following sections of Companies Act,2013?
	A.	Section 27	B.	Section 25
	C.	Section 29	D.	Section 32
	Answer :-A
136	Which of the following Section of the Companies Act,2013 mentions about the voting rights of the members?
	A.	Section 47	B.	Section 45
	C.	Section 46	D.	Section 49
	Answer :- A
137	Preference shareholders have the right to vote in which of the following cases?
	A.	On every resolution of the company.	B.	Resolutions which affect their rights.
	C.	Resolution for winding up of the company	D.	B and C
	Answer :-D
138	According to Section 48 of Companies Act,2013, the rights attached to the shares of any class can be varied with the consent of ___ of the shareholders of that class?
	A.	1/3rd	B.	2-Jan
	C.	1/4th	D.	3/4th
	Answer :- D
139	Company can issue shares at premium under which of the following sections of Companies Act,2013?
	A.	Section 50	B.	Section 49
	C.	Section 51	D.	Section 52
	Answer :-D
140	Sweat Equity Shares can be issued to which of the following employees?
	A.	A permanent employee of the company who is working in India.	B.	A permanent employee of the company who is working outside India
	C.	A director of the company working in the subsidiary of the holding company.	D.	All of the above
	Answer :- D
141	Which among the following is type of share issued to existing shareholders to increase its subscribed share capital?
	A.	Bonus Shares	B.	Right Issue
	C.	Preference Shares	D.	None of the above
	Answer :-B
142	Which of the following section of Companies Act,2013 deals with bonus shares ?
	A.	Section 45	B.	Section 52
	C.	Section 59	D.	Section 63
	Answer :- D
143	As per the Companies Act, which of the following are the sources of the dividend?
	A.	Current years Profit of the Company	B.	Undistributed or Accumulated Profits of the previous years
	C.	Free Reserves	D.	All of the above
	Answer :-D
144	Appointment of 1st Auditor in case of government company is made within______ days from the date of registration ?
	A.	15 days	B.	30 days
	C.	45 days	D.	60 days
	Answer :- D
145	What is the procedure for removal of an auditor before the expiry of the term?
	A.	An ordinary resolution by the board of Directors of the Company	B.	An ordinary resolution by the Shareholders of the Company
	C.	Special resolution with the approval by the Central Government	D.	An ordinary resolution by SEBI
	Answer :-C
146	Which of the following situations is considered as the casual vacancy in case of the post of an auditor?
	A.	Vacancy caused by Death	B.	Vacancy caused by Disqualification
	C.	Vacancy caused by expiry of term	D.	A and B
	Answer :- D
147	________________means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
	A.	Company limited by guarantee	B.	Company limited by shares
	C.	Both (a) and (b)	D.	None of these
	Answer :-B
148	The minimum number of members that required while you are registering a public company is___
	A.	2	B.	6
	C.	8	D.	7
	Answer :- D
149	The minimum number of members that required while you are registering a private company is___
	A.	2	B.	6
	C.	8	D.	7
	Answer :-A
150	When did The Companies act 2013, come into force?
	A.	1-Apr-13	B.	1-May-13
	C.	1-Mar-14	D.	30th August 2013
	Answer :- D
151	Which section of The Companies act 2013 deals with Rectification of the name of the company_ ?
	A.	Section 16 of The Companies act 2013	B.	Section 14 of The Companies act 2013
	C.	Section 13 of The Companies act 2013	D.	Section 18 of The Companies act 2013
	Answer :- A
152	Section 12 of The Companies act 2013 deals with_______?
	A.	Registered office of the company	B.	Formation of company
	C.	Service of documents	D.	Articles
	Answer :-A
153	Section 10 of The Companies act 2013 deals with_______?
	A.	Incorporation of company	B.	Execution of bills of exchange
	C.	Effect of memorandum and articles	D.	Shelf prospectus
	Answer :- C
154	A prospectus issued in the form of advertisement must state
	A.	The objects for which the company has been formed.	B.	The liability of members
	C.	The amount of share capital of company.	D.	All the above
	Answer :-D
155	Who among the following cannot be the subscriber?
	A.	Company	B.	LLP
	C.	Minor	D.	Body Corporate
	Answer :- C
156	The registered office of the company can be shifted form one city to another by passing
	A.	BR(Board Resolution)	B.	OR(Ordinary Resolution)
	C.	SR(Special Resolution)	D.	UR(Unanimous Resolution)
	Answer :-C
157	The prospectus is defined under _________
	A.	2(69)	B.	2(70)
	C.	2(71)	D.	2(72)
	Answer :- B
158	Self-Prospectus is valid for the period_______
	A.	1 Months	B.	3 Months
	C.	6 Months	D.	1 Year
	Answer :-D
159	The rate of underwriting commission is_____% in shares, and____% in case debentures of issue price
	A.	7.5%, 2.5%	B.	2.5%, 2.5%
	C.	5%, 10%	D.	5%, 2.5%
	Answer :- A
160	Underwriting commission is paid out of _________
	A.	Proceed of issue	B.	Profit of company
	C.	Out of reserve	D.	Either (a) or (b)
	Answer :-D
161	In which year did factories act come into force?
	A.	23rd September, 1948	B.	1st April, 1949
	C.	4th April, 1949	D.	12th September, 1948
	Answer :- B
162	As per the factories act, after how many years should the factory premises be painted and refurbished?
	A.	5 years	B.	2 years
	C.	2 years	D.	10 years
	Answer :-A
163	As per section 2 in factories act, who will be called as an adult?
	A.	A person who has completed 21 years of age	B.	A person who is less than 19 years of age
	C.	A person who has completed 24 years of age	D.	A person who has completed 18 years of age
	Answer :- D
164	Section 2(g) under the act defines _______
	A.	Factory	B.	Manufacturing process
	C.	Worker	D.	Occupants
	Answer :-B
165	If there are ____ numbers of employees, then the employer has to provide a canteen.
	A.	250	B.	510
	C.	320	D.	100
	Answer :- A
166	Which of the following is not a statutory welfare facility under the Factories Act, 1948?
	A.	Crèche	B.	Canteen
	C.	Transport	D.	First-Aid Boxes
	Answer :-C
167	To avoid overcrowding the space provided for each worker under the Factories Act, 1948 is
	A.	12 cubic metres for factories built before 1948 and 14.2cubic meters for those built after 1948	B.	10 cubic metres for factories built before 1948 and 14.2 cubic meters for those built after 1948
	C.	9.9 cubic metres for factories built before 1948 and 14.2 cubic meters for those built after 1948	D.	9.9 cubic meters for factories built before 1948 and 14.4 cubic meters for those built after 1948.
	Answer :- C
168	Under the Factories Act, 1948 the working hours of 8 per day and 48 per week
	A.	Include spread over.	B.	Are minimum working hours
	C.	Include rest interval period.	D.	Do not include rest interval period
	Answer :-D
169	Which part of the definition of ‘worker’ under the Factories Act is incomplete?
	A.	A person employed directly or by or through any agency.	B.	With or without the knowledge of the principal employer.
	C.	For remuneration	D.	In the manufacturing process
	Answer :- C
170	Ambulance room shall be provided if
	A.	30 womens workers are employed under Maternity Benefit Act, 1965.	B.	Creche is provided under the Factories Act, 1948.
	C.	500 workers are employed in the factory under the Factories Act, 1948.	D.	The Workmens’ Compensation Act, 1923 is applicable to the factory.
	Answer :-C
171	The maximum daily hours of work in a day with normal wage allowed in factories is
	A.	11 hours	B.	10 hours
	C.	9 hours	D.	8 hours
	Answer :- C
172	The provision for cooling water during hot weather should be made by the organization if it employees ................... or more employees.
	A.	200	B.	250
	C.	300	D.	150
	Answer :-B
173	If the factory employs more than 1000 Workers, they should appoint qualified —— to carry out the prescribed duties
	A.	Safety Officer	B.	Welfare officer
	C.	Security officer	D.	None of these
	Answer :- A
174	Which section of the Factories Act deals with appointment of Welfare Officers?
	A.	Section 45	B.	Section 49
	C.	Section 51	D.	Section 55
	Answer :-B
175	Canteen is to be provided if engaging Employees more than ............. persons.
	A.	230	B.	300
	C.	250	D.	275
	Answer :- C
176	No woman shall be required or allowed to work in any factory except between the hours
	A.	6 A.M. and 7 P.M.	B.	5 A.M. and 6 P.M.
	C.	7 A.M. and 10 P.M.	D.	6 A.M. and 10 P.M.
	Answer :-A
177	The objective of the which of the following act is to ensure adequate safety measures and to promote the health and welfare of the workers employed in factories
	A.	Factories Act 1948	B.	Employees' State Insurance Scheme 1948
	C.	Workmen's Compensation Act 1923	D.	Industrial Dispute Act 1947
	Answer :- A
178	encing of machinery in use or in motion is not obligatory under Section 21 of the Factories Act, 1948. This statement is
	A.	TRUE	B.	FALSE
	C.	False in respect of factories having more than 1000 workers	D.	True in respect of factories having more than 1000 workers
	Answer :-B
179	What is the maximum number of hours in a week that an adult worker is allowed to work for
	A.	35 hours	B.	40 hours
	C.	45 hours	D.	48 hours
	Answer :- D
180	Under which of the following legislations there is a provision called ‘protected workmen’?
	A.	Trade Unions Act, 1926	B.	Industrial Employment
	C.	Factories Act, 1948	D.	Industrial Disputes Act, 1947
	Answer :-D
181	Which one of the following is not a machinery for settlement of Industrial Disputes under the Industrial Disputes Act, 1947?
	A.	Conciliation Officer	B.	Board of Conciliation
	C.	Collective Bargaining	D.	Labour Court
	Answer :- C
182	Under which Schedule of the Industrial Disputes Act, 1947 Public Utility Services have been listed out?
	A.	1st Schedule	B.	2nd Schedule
	C.	3rd Schedule	D.	4th Schedule
	Answer :-A
183	First come last go and last come first go’ is the principle of
	A.	Lay-off	B.	Closure
	C.	Retrenchment	D.	Dismissal
	Answer :- C
184	Which of the following is machinery for settlement of industrial disputes?
	A.	Indian Labour Conference	B.	Joint Management Council
	C.	Industrial Tribunal	D.	Standing Labour Committees
	Answer :-C
185	Grievance Handing Machinery is given in
	A.	Industrial Disputes Act	B.	Factories Act
	C.	Both (A) and (B)	D.	None of the above
	Answer :- A
186	List of unfair labour practices on the part of the trade unions and employers was included in
	A.	Factories Act	B.	Industrial Dispute Act
	C.	Trade union Act	D.	None of the above
	Answer :-B
187	Which of the following statements about the Grievance Redressal Machinery given under the Industrial not true?
	A.	Every industrial establishment employing 20 or more workmen shall have one or more Grievance Redressal Committee.	B.	Grievance Redressal Committee can resolve any dispute arising in the industrial establishment.
	C.	It is a bipartite committee with equal number of members representing the employer and workmen.	D.	There is a 45 days time limit from the date of written application to complete the proceedings.
	Answer :- B
188	Unfair Labour Practices are listed in
	A.	The Factories Act, 1948	B.	. The Industrial Employment (Standing Orders) Act, 1946.
	C.	The Industrial Disputes Act, 1947	D.	The Trade Unions Act, 1926.
	Answer :-C