KRISHNA UNIVERSITY

DEPARTMENT OF BUSINESS ADMINISTRATION MBA 208 BUSINESS LAWS Question bank for online IV mid semester examinations
1. Law is the body of principles enforced by ----------------. (a) agreements (b) obligations (c) judiciary (d) contract 2. Indian Contract Act came in to existence in the year ------------. (a) 1872 (b) 1873 (c) 1874 (d) 1875 ( c )

( a

3. A contract where both parties to the contract have fulfilled their respective obligations is called --------------. ( b ) (a) Executory contract (b) Executed contract (c) Void contract (d) Voidable contract 4. An agreement not enforceable by law is said to be ------------. (a) Void agreement (b) Void contract (c) Voidable contract (d) Illegal contract 5. Consent is said to be free when it is not caused by -------------(a) fraud (b) misrepresentation (c) mistake (d) all the above ( a )

( d

6. Capacity of parties means the parties to an agreement must be --------------- to contract. ( c ) (a) lawful (b) enforced (c) competent (d) binding 7. Some thing in return is called -------------. ( b )

(a) (b) (c) (d)

capacity consideration competence certainty ( a )

8. The term revocation means -------------. (a) taking back (b) expressed (c) authorized (d) communicated

9. An acceptance of an invitation for dinner does not create any -------.( c (a) offer (b) tender (c) legal obligations (d) proposal 10. A general offer can be accepted by -----------. (a) specific person only (b) anyone (c) Offerer (d) Promiser 11. A continuous offer is called --------------. (a) specific offer (b) general offer (c) express offer (d) standing offer 12. -------- is not the competent person to enter in to contract. (a) (b) (c) (d) major person of unsound mind person qualified by law person of sound mind ( a ( b )

( d

( b

13. A stranger to consideration -------(a) can sue (b) cannot sue (c) both (a) & (b) (d) None of the above 14. A stranger to a contract ---------. (a) can sue (b) cannot sue (c) both (a) & (b)

( b

(d) None of the above 15. Completed gift need --------- consideration. (a) less (b) more (c) no (d) none of above ( c )

16. Coercion means ----------. ( d (a) Committing any act which is forbidden by the Indian Penal Code (b) Unlawful detaining of any property (c) Threatening to detain any property (d) All the above.

17. Circumstance where a person holds a real or apparent authority over the other will come under ----------. ( b ) (a) fraud (b) undue Influence (c) Misrepresentation (d) mistake 18. Agreements in restraint of marriage-----------. ( a ) (a) void agreement (b) void contract (c) contingent contract (d) voidable contract 19. Transfer of contractual rights and liabilities to a third party is called ------( b ) (a) Nomination (b) Assignment (c) Tender (d) Devolution 20. In case of several joint promiser, the promise can demand the performance from ------------ . ( c ) (a) Any one of joint promiser (b) More of joint promiser (c) Both (a) & (b) (d) None of the above

21. Substitution of a new contract for the original contract is called ----------------. ( a ) (a) Novation (b) Recession (c) Alteration (d) remission 22. The breach occurs when actually performing the contract is called ---. ( a (a) Actual breach (b) Anticipatory breach (c) Constructive breach (d) None of the above )

23. ---------- damages are awarded in the case of breach of contract when there is only a technical violation of legal right, but no substantial loss is incurred. ( c ) (a) Ordinary damages (b) Special damages (c) Nominal damages (d) Exemplary damages 24. --------------is one where the bailee keeps the goods of the bailor without reward. ( a ) (a) Gratuitous bailment (b) Non- Gratuitous bailment (c) Both (a) & (b) (d) None of the above 25. An agency is created when a principal appoints an agent either by word or by an agreement in writing is called -------------. ( b ) (a) Agency by implication (b) Agency by express agreement (c) Agency by ratification (d) Agency by necessity 26. The mercantile agent may be ------------. (a) factors (b) commission agents (c) house agents (d) law agents ( a )

27. The Non-mercantile agent may be ---------. (a) brokers (b) auctioneers (c) bankers (d) election agent

d )

28. When the goods are transferred from seller to the buyer, the contract is called ----( a ) (a) sale (b) agreement to sell (c) hire-purchase (d) barter 29. Goods which are to be manufactured or produced by the seller after the contract of sale is made is called ------------. ( c ) (a) future goods (b) contingent goods (c) existing goods (d) specific goods 30. Implied condition in the contract of sale is ----------. (a) wholesomeness (b) fitness for particular purpose (c) sale by sample (d) all the above ( d )

31. A sale in which goods are offered to the highest bidder is called ----- ( b (a) tender (b) auction (c) lien (d) ex-ship

32. Transfer from one person to another in return for consideration is called ------. ( b ) (a) delivery (b) negotiation (c) assignment (d) nomination 33. An instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only, or to the order of a certain person------. ( a ) (a) promissory note (b) bill of exchange (c) cheque (d) demand draft

34. The true test for partnership firm is --------. (a) agreement (b) business (c) mutual agency (d) sharing of profits

( c )

35. A partnership formed without fixing the duration of its business is called a -------. ( a ) (a) partnership at will (b) partnership for a fixed period (c) particular partnership (d) general partnership 36. A partner who lends merely his name and reputation to a firm is called --------. ( b ) (a) Sleeping partner (b) Nominal partner (c) Partner by holding out (d) Partner estoppel 37. Dissolution occurs with the consent of all the partners is called ------- ( a (a) Dissolution by agreement (b) Dissolution by notice (c) Compulsory dissolution (d) Dissolution by court 38. The company Act came into force on --------------. (a) 1st April, 1955 (b) 1st April, 1956 (c) 1st May, 1956 (d) 1st May, 1955. )

( b )

39. Which of the following is not the characteristic feature of the company? ( c ) (a) Artificial legal person (b) Separate legal entity (c) Mutual Agency (d) Perpetual succession 40. When the liability of the company limited by amount, such a company is called -------. ( a ) (a) Company limited by Guarantee (b) Company limited By Shares (c) Unlimited Company (d) Foreign company

41. When the liability of the company limited by shares, such a company is called -------. ( b ) (a) Company limited by Guarantee (b) Company limited By Shares (c) Unlimited Company (d) Foreign company 42. The minimum number of members in a Private Company is ----------. ( c ) (a) 4 (b) 3 (c) 2 (d) 1 43. The minimum number of members in a Public Company is---------. ( (a) 6 (b) 7 (c) 8 (d) 9 44. The maximum number of members in private company is -------. (a) 20 (b) 30 (c) 40 (d) 50 45. In --------- company, the shares are freely transferable. (a) Private company (b) Public company (c) Statutory company (d) Chartered company 46. ----------- company has to issue a prospectus. (a) Private company (b) Statutory company (c) Public company (d) Chartered company b )

( d )

( b )

( c )

47. ------------- company commence business only after getting the certificate of commencement of business. ( c ) (a) Private company (b) Statutory company (c) Public company (d) Chartered company

48. ---------- Company need not hold a statutory meeting and need not file a Statutory Report. ( a ) (a) Private company (b) Statutory company (c) Public company (d) Chartered company 49. For General meeting of a public company the quorum required is ----( b (a) 4 (b) 5 (c) 6 (d) 7 50. ---------- is the first stage in the formation of a company. (a) promotion (b) organization (c) investigation (d) dissolution 51. The usual way of receiving of receiving remuneration is (a) selling own property at an overvaluation (b) taking a grant of some shares of the company (c) taking a commission on the shares sold (d) all the above )

( a )

( d )

52. ----------- contract is one which is entered into before the company is incorporated. ( a ) (a) preliminary contract (b) contingent contract (c) wagering contract (d) void contract 53. A company shall have a registered office within ----- days of its incorporation. ( b ) (a) 20 (b) 30 (c) 40 (d) 50 54. The capital subscribed by the share holders is called ----------(a) authorized capital (b) nominal capital (c) subscribed capital (d) registered capital ( c )

55. Section ----- allows the change of the objects within certain defined limits. ( c ) (a) 15 (b) 16 (c) 17 (d) 18 56. Effect of Ultra Vires transaction is --------. (a) Injunction (b) Personal liability of directors (c) Ultra vires torts (d) All the above ( d )

57. ------------------ contain rule, regulations and bye-laws for the general administration of the company. ( b ) (a) Memorandum of Association (b) Articles of Association (c) Prospectus (d) None of the above 58. Cancellation of shares is called ----------. (a) lien on shares (b) transfer of shares (c) forfeiture of shares (d) transfer of shares 59. Articles and memorandum is open to all is called ---------. (a) Constructive notice (b) Indoor management (c) Both (a) & (b) (d) None of the above ( c )

( a )

60. A document inviting deposits from the public for subscription is called ( c ) (a) memo (b) articles (c) prospectus (d) none of the above

61. If the promoters of a public company are confident of obtaining the required capital through private contracts, they issue -------------------. ( b ) (a) statement (b) statement in lieu of prospectus (c) deemed prospectus (d) none of the above 62. Prospectus issued by or on behalf of a company and containing a mis-statement therein may -------- the contract. ( c ) (a) recission (b) damages of Deceit (c) Both (a) & (b) (d) None of the above 63. If a mis-statement in the prospectus a person responsible for is liable for fine up to ( c ) (a) Rs.5000 (b) Two years (c) Both (a) & (b) (d) None of the above 64. -------------- mode of acquiring membership in a company. (a) Application (b) Transfer (c) Subscribing the memo (d) All the above 65. ------------ can be a member in a company. (a) minor (b) insolvent (c) company (d) partnership firm 66. -------------- mode of termination of membership (a) shares are sold (b) rescinds the contract (c) valid surrender of shares (d) all the above ( d )

( c )

( d )

67. ---------- is the actual amount received by the company from the shareholders. ( a ) (a) Paid up capital (b) Reserve capital (c) Called up capital (d) Subscribed capital 68. Share capital which is not the Preference Share capital is called ------.( b (a) (b) (c) (d) Reserve capital Paid-up capital Equity capital Issued capital )

69. ----------------- are those which possess preferential rights in respect of dividend and repayment of capital. ( a ) (a) preference shares (b) equity shares (c) ordinary shares (d) deferred shares 70. Option to convert preference shares in to equity shares called -------. ( a ) (a) convertible preference shares (b) non-convertible preference shares (c) redeemable preference shares (d) irredeemable preference shares 71. A bundle of fully paid shares put together for convenience is called------. ( c ) (a) debenture (b) share (c) stock (d) none of the above 72. ---------- is a right to retain possession of some property until some claim is attaching it.` ( b ) (a) forfeiture of shares (b) lien on shares (c) surrender of shares (d) calls on shares

73. -------- is a demand made by the company on its shareholders to pay the whole or part of the balance remaining unpaid on each share. ( d ) (a) forfeiture of shares (b) lien on shares (c) surrender of shares (d) Calls on shares 74. ----------------- is a document certifying that the allottee is the holder of the specified number of shares. ( a ) (a) Share certificate (b) Share warrant (c) Both (a) & (b) (d) None of the above 75. Transfer of shares by operation of law is called ---------. (a) transfer shares (b) transmission of shares (c) Both (a) & (b) (d) None of the above ( b )

76. ------------- is a certificate issued by a company under its seal evidencing a deed. ( a ) (a) debenture (b) share (c) lien (d) forfeiture 77. --------- is a gathering of a number of persons with certain objects in view. ( c ) (a) assembly (b) committee (c) meeting (d) board 78. Statutory meeting must held within ------- months from the date of commencement of the company. ( d ) (a) 12 (b) 10 (c) 8 (d) 6

79. A general meeting other than statutory meeting and annual general meeting is called as ----- general meeting. ( a ) (a) (b) (c) (d) Extraordinary Class meetings Creditors meeting Board

80. A resolution passed by simple majority of the people is known as -----------. ( b ) (a) Special Resolution (b) Ordinary Resolution (c) Resolution by Notice (d) Resolution by special notice 81---------- is the share of profit that falls to each individual member of the company. ( c ) (a) interest (b) bonus (c) dividend (d) capital 82. ----------- dividend paid between two annual general meetings. (a) (b) (c) (d) capitalization bonus interest interim ( c ) ( d )

83. Unjust or unfair conduct is called ----------. (a) Oppression (b) Mismanagement (c) Both (a) & (b) (d) None of the above 84. ------------ is the process of putting an end to the life of the company.

( a (a) (b) (c) (d) Winding up Dissolution Liquidation contribution

85. Examination of accounts is called ------------. (a) Accounting (b) Auditing (c) Circulation (d) All the above

( b

86. ------------ is empowered to remove managerial personnel from office in a company. ( b ) (a) (b) (c) (d) State government Central Government Company Law Board Both State & Central Government

87. ------------- is a person who is liable to contribute to the assets of the company. ( c ) (a) Debtor (b) Holder (c) Contributory (d) Creditor 88. Water Act was introduced in the year --------. (a) 1971 (b) 1972 (c) 1973 (d) 1974 ( d )

89. Consumer Protection Act came in to force in the year --------. (a) 1986. (b) 1987 (c) 1988 (d) 1989

( a

90. Which of the right of consumer according to consumer protection Act is ( d ) (a) The right to be informed (b) The right to be assured (c) The right to be heard (d) All the above 91. Every year National Consumers Day was is celebrated on -----------.( a (a) 24th , December (b) 26th, December (c) 28th, December )

(d) 30th, December

92. Environmental Protection Act was introduced in the year ------- . ( (a) 1984 (b) 1985 (c) 1886 (d) 1987 93. Contract Labor Act was introduced in the year --------. (a) 1969 (b) 1970 (c) 1971 (d) 1972 94. Nepals forests are now being restored through ---------control. (a) State Government (b) Central Government (c) Community (d) None of the above 95. The Air Act was introduced in the year ------------. (a) 1981 (b) 1982 (c) 1983 (d) 1984

c )

( b

( c

( a

96. The person who has control over the affairs of the factory or the premises is called ( b ) (a) employer (b) occupier (c) employee (d) worker 97. Revocation of contract means ----------------. (a) Formation (b) Communication (c) Withdrawal (d) Rejection ( c )

98. When two parties make identical offers to each other is called as ---------.( b (a) Counter offer (b) Cross offer (c) Conditional offer (d) Standing offer. 99. A continuous offer is called as -----------. (a) Standing offer (b) Invitation (c) Conditional Offer (d) Tender 100. If consideration is unlawful, the contract is ------. (a) Unenforceable (b) Void (c) Unenforceable & Void (d) None of the above ( a

( c