Business Law MCQ Online Assignment
Business Law MCQ Online Assignment for your amity mba bba courses, ignou mba, imt cdl, smu and upes management program. This is important online mcq question answer for various distance learning program.
Q1: Ownership may pass immediately to buyer if goods are
Answer: specificAnswer
Q2: (a) P/N is an order to pay money
Answer: P/N is a promise to pay money.Answer
Q3: The pecuniary jurisdiction of the District forum is
Answer: Rs. 20 lakhAnswer
Q4: The pecuniary jurisdiction of National Commission is
Answer: above Rs. 1 croreAnswer
Q5: Appeal from District Forum will lie to
Answer: State CommissionAnswer
Q6: Appeal from National Commission will lie to
Answer: Supreme CourtAnswer
Q7: Limitation period for filing complaint to Consumer Forum is
Answer: 2 yearsAnswer
Q8: Who is not a consumer
Answer: Person purchasing goods for commercial purposeAnswer
Q9: Who is a consumer
Answer: Person hiring servicesAnswer
Q10: Arbitration agreement
Answer: must be in writingAnswer
Q11: Arbitration and Conciliation Act 1996 deals with
Answer: only domestic arbitrationAnswer
Q12: Arbitration Award is
Answer: required to be converted into decreeAnswer
Q13: Conciliator
Answer: assists the parties to reach settlementAnswer
Q14: An agent
Answer: can not appoint sub-agent without the permission of PrincipalAnswer
Q15: In Insurance contract, insurable interest
Answer: is mustAnswer
Q16: A promissory note can be payable to bearer on demand
Answer: A cheque can be payable to bearer on demandAnswer
Q17: ‘Acceptor’ is a party
Answer: only in case of bills of exchangeAnswer
Q18: Cheque payable to bearer can be negotiated by
Answer: mere endorsementAnswer
Q19: A negotiable instrument payable to order can be negotiated by
Answer: only by endorsement in fullAnswer
Q20: What can be ‘crossed’
Answer: ChequeAnswer
Q21: A company is a
Answer: Legal personAnswer
Q22: A Company becomes legal person
Answer: when incorporated according to provisions of Companies ActAnswer
Q23: Which of the following contracts, in order to be valid under the Indian Contract Act, 1872, must be in writing, stamped and registered
Answer: Bill of exchangeAnswer
Q24: Under the Indian Contract Act, 1872, “every promise or set of promises forming the consideration for each other” is known as
Answer: AgreementAnswer
Q25: Under the Indian Contract Act, 1872, if all the parties to a contract substitute a new contract for an existing contract, it is known as
Answer: NovationAnswer
Q26: Under the Indian Contract Act, 1872, which of the following agreements is not considered to be opposed to public policy
Answer: Agreement to refer to arbitration any disputes which have arisen or which may arise in futureAnswer
Q27: Under the Indian Contract Act, 1872, the damages which are usually assessed on the basis of the actual loss suffered by the plaintiff are known as
Answer: General damagesAnswer
Q28: Under the Indian Contract Act, 1872, in which of the following circumstances a continuing guarantee may not be revoked
Answer: By death of surety in respect of transactions prior to the date of deathAnswer
Q29: Abhimanyu purchased a Ford Ikon car and obtained a comprehensive insurance policy from Continental Insurance Company. This type of contract is known as
Answer: A contract of indemnityAnswer
Q30: Under the Indian Contract Act, 1872, the bailment of goods as security for payment of a debt is known as
Answer: PledgeAnswer
Q31: Under normal circumstances which of the following statements is false regarding contract of agency
Answer: An agent can delegate his authority to a sub-agent.Answer
Q32: Which of the following agents is considered as a non-mercantile agent under the Indian Contract Act, 1872
Answer: Insurance agent.Answer
Q33: Which of the following is not considered as a payment in due course under the Negotiable Instruments Act, 1881
Answer: Payment made on an instrument before the date of maturityAnswer
Q34: Which of the following statements is false in respect of presumptions of a negotiable instrument under the Negotiable Instruments Act, 1881
Answer: The instruments were not endorsed in the order in which they appear on the instrumentAnswer
Q35: The pecuniary jurisdiction of State forum and National forum are
Answer: Rs 20Lakhs -1 crore and 1 crore and aboveAnswer
Q36: Veedol Ltd. was incorporated on May 3, 2007. However, the company could obtain its certificate to commence business only on September 25, 2007. The company, in the meanwhile had entered into contracts with suppliers for import of machinery. Such contracts entered into after incorporation but before obtaining certificate of commencement of business are considered as
Answer: Provisional contractsAnswer
Q37: Which of the following instances isnottreated as ‘crossing’ under the Negotiable Instruments Act, 1881
Answer: A cheque bearing across its face the words ‘account payee’ without two transverse parallel linesAnswer
Q38: The term ‘goods’ under the Sale of Goods Act, 1930, does not include
Answer: Actionable claimsAnswer
Q39: Under the Sale of Goods Act, 1930, in case of breach of a warranty in a contract of sale, the buyer can
Answer: Claim damages onlyAnswer
Q40: The right of lien available to an unpaid seller by implication of law under the Sale of Goods Act, 1930 is to
Answer: Retain the possession of goods for the priceAnswer
Q41: With reference to the Sale of Goods Act, 1930 which of the following statements is False is Correct Answer
Answer: A breach of warranty can be treated as a breach of conditionAnswer
Q42: In which of the following cases corporate veil need not be lifted by a Court of law under the Companies Act, 1956
Answer: Where a company is used for the furtherance of welfare legislationAnswer
Q43: As per section 591 of the Companies Act, 1956, a foreign company means
Answer: A company incorporated outside India and having place of business in IndiaAnswer
Q44: Under the Companies Act, 1956, a public company which never commenced business is known as a/an
Answer: Defunct company.Answer
Q45: The Doctrine of Constructive Notice’ is used to protect
Answer: Company against outsidersAnswer
Q46: The directors of a newly floated company want to name it as Zeneca Finance Corporation. Under the Companies Act, 1956, in order to use the keyword ‘Corporation’ in its name the company must have a minimum authorized capital of
Answer: Rs. 5 croreAnswer
Q47: The lock in period of minimum promoter’s contribution in case of a public issue is
Answer: 3 yearsAnswer
Q48: Under the Companies Act, 1956, if a public company does not register its own set of articles, then
Answer: The regulations contained in Table A of Schedule I to the Act automatically applyAnswer
Q49: The maximum number of public companies to which an individual can be appointed as a director at a time under section 276 of the Companies Act, 1956, is
Answer: 15 companiesAnswer
Q50: Which of the following statements is false under the Companies Act, 1956
Answer: A director must be a member of the companyAnswer
Q51: Section 292A of Companies Act, 1956 lays down compulsory constitution of ‘Audit Committee’ by certain public companies. Which of the following companies are required to constitute such committees
Answer: A public company having a paid-up capital of not less than Rs.5 crore.Answer
Q52: Under the Companies Act, 1956, a public financial institution whose main object is financing shall file which of the following with the Registrar of Companies for issue of its securities
Answer: Shelf prospectus.Answer
Q53: Which of the following statements is false in respect of a proxy under the Companies Act, 1956
Answer: The period fixed for depositing proxies cannot be extended beyond 72 hours before the meeting.Answer
Q54: The maximum maturity period for deposits accepted by a public company under the Companies (Acceptance of Deposits) Rules, 1975, cannot exceed
Answer: 60 months.Answer
Q55: Where more than one companies are merged together, it is known as
Answer: Amalgamation.Answer
Q56: The debentures, which are similar to share warrants are known as
Answer: Bearer debenturesAnswer
Q57: Which of the following is not a ground for winding up of a company by National Company Law Tribunal under section 433 of the Companies Act, 1956
Answer: Default in holding annual general meetingAnswer
Q58: As per the provisions the Companies Act, 1956, an alternate director can be appointed, in place of the original director during his absence for a period not less than 3 months, by
Answer: Board of directorsAnswer
Q59: Under the Companies Act, 1956, the amount held under unpaid dividend account of a company which remains unpaid or unclaimed for a period of 7 years from the date of such transfer must be transferred by the company to
Answer: Investor education and protection fundAnswer
Q60: Which of the following statements is true with respect to the requirement of quorum for a general meeting of a company under the Companies Act, 1956
Answer: Quorum is required only at the beginning of the meeting of the companyAnswer
Q61: Which of the following category of directors cannot be removed by the members of the company in general meeting under section 284 of the Companies Act, 1956
Answer: The director appointed by the Central GovernmentAnswer
Q62: Any person is a holder in due course if he has obtained the negotiable instrument
Answer: For considerationAnswer
Q63: Michael Porte’s Five Forces Model includes
Answer: All these—Threat of SubstitutesAnswer
Bargain Power of supplier
Q64: I had applied for subscription in Rajlakshmi scheme of UTI. The essence of the scheme was that the sum of money deposited with the UTI would grow 21 times in 28 years. However subsequently, the UTI extended the maturity date by two years. Can I approach a Consumer Court
Answer: Yes you can seek relief in a consumer courtAnswer
Q65: Can Consumer Forums adjudicate disputes involving scale of pay
Answer: No, Consumer Forums do adjudicate dispute-involving scale of payAnswer
Q66: In which of the following instances, the collecting banker shall not be liable for conversion to the true owner under the Negotiable Instruments Act, 1881
Answer: The collecting bank is acting as an agent for receiving the payment.Answer
Q67: Which of the following amounts to reduction of share capital under section 100 of the Companies Act, 1956
Answer: Forfeiture of shares for non-payment of callsAnswer
Q68: Which of the following statements is false in respect of offer and it’s acceptance under the Indian Contract Act, 1872
Answer: A person who acts according to the terms of an offer which has not been communicated to him will not be deemed to have accepted the offerAnswer
Q69: Mr. Dheeraj is a director of Laxmi Ltd., which failed to file its annual returns from the year 2003-04. The maximum period for which Mr. Dheeraj will be disqualified from becoming a director in any public limited company is
Answer: 5 yearsAnswer
Q70: Which of the following statements is false in respect of a contract of guarantee under the Indian Contract Act, 1872
Answer: A contract of guarantee presupposes the existence of a debt, therefore, if there is no existing liability, there cannot be a guaranteeAnswer
Q71: Which of the following statements is false in respect of a contract of sale under the Sale of Goods Act, 1930
Answer: In a sale, a breach of condition can only be treated as a breach of warrantyAnswer
Q72: The articles of association of Rathi Informatics Ltd. provided for a maximum of 18 directors on the Board. Presently there are 12 directors on the Board of the company. The company wishes to increase the strength of its Board to 15. Which of the following statements is correct in respect of these circumstances under the Companies Act, 1956
Answer: As the proposed increase is beyond 12, a special resolution as well as approval of the Central Government is requiredAnswer
Q73: Which of the following statements is false in respect of dividend on preference shares
Answer: Where cumulative preference shares have been issued at different times, the arrears of dividend will have to be paid to all the preference shareholders equallyAnswer
Q74: Which of the following statements is false in respect of consideration under the Indian Contract Act, 1872
Answer: Consideration given at the behest of third parties will not be valid considerationAnswer
Q75: Which of the following statements in respect of bailment is false under the Indian Contract Act, 1872
Answer: It is the duty of the bailor to receive back the goods after the purpose is achieved.Answer
Q76: Which of the following statements is false in respect of dividend under the Companies Act, 1956
Answer: A dividend once declared cannot be revoked even with the consent of all the shareholders.Answer
Q77: Which of the following powers may be exercised by the board of directors without obtaining consent of the company at a general meeting
Answer: Power to invest compensation amounts received on compulsory acquisition of any of the company’s propertiesAnswer
Q78: Which of the following agreements is not valid under the Contract Act, 1872
Answer: An agreement by a minor to repay a loan taken for supply of necessaries to him during his minority.Answer
Q79: As per section 166 of the Companies Act, 1956, the first annual general meeting of a company should be held within
Answer: 18 months of its incorporationAnswer
Q80: Which of the following is not excluded for the purpose of counting maximum number of directorships under section 275 of the Companies Act, 1956
Answer: Directorship in a private companyAnswer
Q81: Which of the following is not a foreign bill under the Negotiable Instruments Act, 1881
Answer: A bill drawn in India upon a resident of India, payable in Kuala LumpurAnswer
Q82: A prospectus once registered with the Registrar Of Companies (ROC) should be issued within
Answer: 90 days from the date of registration with ROC.Answer
Q83: Which of the following statements is false in respect of a pawnee under the Indian Contract Act, 1872
Answer: When the pawnor defaults in payment of the principal debt the pawnee cannot recover from the pawnor any deficit between the debt due and sale priceAnswer
Q84: Mr. Pankaj who was appointed as an additional director at the Board meeting held on December 31, 2005 continues to be in his office on the ground that the annual general meeting of the company for the year 2006 was not held as required under the Act. Mr. Pankaj was also appointed as a managing director for a period of five years with effect from January 01, 2006 at the same Board meeting. Which of the following statements is true in respect of an additional director under the Companies Act, 1956
Answer: Mr. Pankaj shall hold the office of the managing director till the completion of five years.Answer
Q85: Which of the following statements is false in respect of rights of a bailee under the Indian Contract Act, 1872
Answer: The bailee may retain not only those goods of the bailor in respect of which some particular service has been rendered, but also other goods in the possession of the bailee belonging to the bailor.Answer
Q86: Section 165 of the Companies Act, 1956, in respect of conduct of statutory meeting is applicable to
Answer: An independent private companyAnswer
Q87: Hiten Desai picked up a diamond ring from the floor of Divya Jewellers, Surat and handed it over to Premchand Bhatia, the manager of Divya Jewellers, with a request to hand it over to the true owner. The true owner could not be traced in spite of best efforts of Premchand. Hiten Desai paid the expenses incurred by Premchand and asked him to return the diamond ring to him. Which of the following statements is true under the Indian Contract Act, 1872
Answer: Premchand is under no obligation to return the ring to Hiten Desai as the ring was found on the floor of his shopAnswer
Q88: Under the Companies Act, 1956, up to what date a director appointed to fill casual vacancy shall hold office
Answer: Until the original director, in whose place he is appointed, returns backAnswer
Q89: At a public auction a car was put up for sale and as Mr. Ramlal was the highest bidder, he got the car. Later, it was discovered that the car was a stolen one. This fact was also not known to the auctioneer. The true owner wishes to obtain possession of the car. Under these circumstances which of the following statements is true under the Sale of Goods Act, 1930
Answer: The auctioneer is personally liable to the true owner for damages only and the true owner has no right to obtain possession of the car.Answer
Q90: Which of the following instances is not treated as ‘crossing’ under the Negotiable Instruments Act, 1881
Answer: A cheque bearing across its face the words ‘not exceeding rupees two hundred’ within two transverse parallel linesAnswer
Q91: Which of the following persons is incompetent to enter into a valid contract under the Indian Contract Act, 1872
Answer: A person of the age of twenty years for whose estate a guardian has been appointed by the CourtAnswer
Q92: Which of the following statements is false in respect of qualification shares to be held by a director of a company under the Companies Act, 1956
Answer: Share warrants will not count for the purpose of share qualificationAnswer
Q93: Mr. Ankit, a creditor of Silktech Ltd. issued a demand notice by registered post at the company’s registered office to payback his loan amount worth Rs. 1,50,000 (along with interest). But the company neglected to reply/ respond for a period of two months. Which of the following statements is true in respect of consequences of failure of Silktech Ltd. to reply under the provisions of the Companies Act, 1956
Answer: Mr. Ankit can sell the assets of the company and take his moneyAnswer
Q94: Which of the following casual vacancies of directors cannot be filled by Board of directors under the Companies Act, 1956
Answer: All these—A vacancy caused by the resignation of nominee director of a financial institutionAnswer
A vacancy caused due to failure of an elected director to assume office.
Q95: Which of the following agreements is voidable under the Indian Contract Act, 1872
Answer: Agreements made under a mutual mistake of factAnswer
Q96: Which of the following statements is true under the Negotiable Instruments Act, 1881
Answer: Every holder is a holder in due courseAnswer
Q97: Which of the following is an illegal agreement under the Indian Contract Act, 1872
Answer: Hire of a truck knowingly for bringing goods which are prohibitedAnswer
Q98: Under the Negotiable Instruments Act, 1881, when a negotiable instrument is delivered conditionally or for a special purpose as a collateral security or for safe custody only, and not for the purpose of transferring absolutely property therein, it is called an
Answer: EscrowAnswer
Q99: Which of the following matters requires passing of special resolution and also the approval of the Central Government under the Companies Act, 1956
Answer: Rectification of name of the company under section 22 of the Companies Act, 1956Answer
Q100: After exercising the right of lien, the seller can resell the goods of perishable nature
Answer: Without giving any noticeAnswer
