Legal Aspects of Business MCQ Questions and Answers Part – 1
Legal Aspects of Business MCQ Questions and Answers Part – 2
Legal Aspects of Business MCQ Questions and Answers Part – 3
101. The agreement made with an alien enemy is
A. valid
B. voidable
C. unlawful
D. difficult
ANSWER: C
102. consideration is —-
A. need not be adequate
B. reasonable
C. both
D. none of these
ANSWER: A
103. Consent given under coercion makes the contract—–
A. void
B. valid
C. voidable
D. invalid
ANSWER: C
104. What is known as a charter of a Company?
A. Memorandum of Association
B. Bye-laws
C. Articles of Association
D. Prospectus.
ANSWER: A
105. The name of a company can be changed by________________.
A. an ordinary resolution
B. a special resolution
C. the approval of the union government
D. a special resolution and with the approval of the central government
ANSWER: A
106. The __________defines a companys relations with the outside world.
A. prospectus .
B. memorandum of association.
C. articles of association .
D. statement in lieu of prospectus
ANSWER: B
107. Mark out the type of alteration that is permitted in the articles of association____
A. that may not be in the company’s interest.
B. that is contrary to the provisions of the companies act.
C. that increases a members liability without his written consent.
D. that is consistent with the memorandum of association
ANSWER: D
108. Which of the following companies must file a statement in lieu of prospectus?
A. A private limited company.
B. A cooperative society.
C. A company that has issued a prospectus.
D. A public company that has not issued a prospectus
ANSWER: D
109. The most important document of a company is its__________.
A. prospectus.
B. annual report.
C. memorandum of association.
D. articles of association
ANSWER: C
110. In an agreement to sell, the seller gets for price if________
A. The goods have been delivered to the buyer.
B. The goods have not been delivered to the buyer.
C. There is a specific agreement.
D. It is not a specific agreement.
ANSWER: C
111. In a contract of sale, unless goods are ascertained, there is______________
A. A sale.
B. An agreement to sell.
C. A void agreement.
D. An unenforceable agreement.
ANSWER: B
112. The rules and regulations for the internal management of a company are contained in its___.
A. prospectus .
B. annual report .
C. memorandum of association .
D. articles of association
ANSWER: D
113. A/an _______may become a director of a company.
A. partnership firm .
B. person of unsound mind .
C. individual .
D. body corporate
ANSWER: C
114. How many directors of a public company, unless the articles provide otherwise, must be appointed by the company in general meeting
A. All the directors .
B. One half of the directors .
C. Two-thirds of the directors .
D. Three-fourths of the directors
ANSWER: C
115. Which of the following is beyond the powers of the board of directors?
A. To issue debentures .
B. To make loans .
C. To remit the payment of any debt due by a director .
D. To issue prospectus
ANSWER: C
116. Holding company means a company ______________.
A. which holds other company.
B. a government company.
C. a chartered company.
D. a subsidiary company
ANSWER: A
117. The partnership entity may be regarded as ____________.
A. a legal entity .
B. an accountable entity .
C. both a legal and accountable entity .
D. neither a legal nor an accountable entity
ANSWER: D
118. A promoter is a person who ______________.
A. is a director .
B. is a relative of the company .
C. is a wellwisher of the company .
D. takes part in the companys incorporation
ANSWER: D
119. The amount of minimum subscription may be learnt from the ______________.
A. prospectus.
B. memorandum of association.
C. articles of association .
D. records of general meetings
ANSWER: A
120. When can a private company commence business ?
A. at any time .
B. after applying for registration.
C. after obtaining the certificate of incorporation.
D. after obtaining the certificate of commencement of business
ANSWER: C
121. The doctrine of constructive notice implies that __________.
A. with the registrar of companies
B. every person dealing with the company is deemed to have notice of the documents field
C. regularity of proceedings need be enquired into a notice of a weeks period is to be given for every
exchange of correspondence
D. indoor management
ANSWER: B
122. A letter of provide must be demanded in the transmission of shares when a person______.
A. is declared insolvent .
B. misbehaves .
C. becomes of unsound mind .
D. has died
ANSWER: D
123. The right of lien excises by an unpaid seller is to _________
A. Retain possession.
B. Regain possession.
C. Recover price and other charges.
D. Recover damages.
ANSWER: A
124. ——— is the constitution of the company
A. memorandum
B. articles
C. prospectus
D. ownership
ANSWER: A
125. Which of the following are characteristics of a company ?
A. It has unlimited liability.
B. It exists only in contemplation of law
C. It has not a perpetual succession
D. It comes to an end on the death of all its members
ANSWER: B
126. The liability of a shareholder in a company limited by shares is ____________.
A. unlimited .
B. limited by guarantee.
C. limited to the unpaid value of shares subscribed by him.
D. none of the above
ANSWER: C
127. The altered Memorandum must be filed with the Registrar within ______________.
A. 1 month of the company Law Boards order .
B. 2 months of the company Law Boards order.
C. 3 months of the company Law Boards order.
D. 4 months of the company Law Boards order
ANSWER: C
128. Which of the following companies need not have their own articles of Association ?
A. unlimited companies.
B. companies limited by guarantee.
C. private companies limited by shares.
D. public companies limited by shares
ANSWER: D
129. Contract which is inferred from the act of the parties is called___________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: C
130. Contract is one which is made by words spoken or words is called____________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: B
131. the Articles of a company conflict with the Memorandum _______________.
A. the Articles shall prevail.
B. the Memorandum shall prevail
C. the directors will resolve the conflict.
D. the court will resolve the conflict
ANSWER: A
132. A threat to commit suicide amounts to __________.
A. fraud.
B. undue influence.
C. coercion.
D. mistake.
ANSWER: C
133. Agreement in restraint of marriage is ___________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
134. Quantum meruit means __________.
A. let the buyer beware.
B. as long as.
C. as soon as.
D. as much as earned.
ANSWER: D
135. The memorandum and Articles of a company are open to inspection by ___________.
A. the members of the company
B. the members and creditors of the company.
C. everybody .
D. the Registrar
ANSWER: C
136. A guarantee which is given for the good conduct of a person is called ___________.
A. prospective guarantee.
B. specific guarantee.
C. fidelity guarantee.
D. continuing guarantee.
ANSWER: C
137. A person who acts as an agent as well as guarantor is called ________.
A. factor.
B. brocker.
C. delcredere agent.
D. banker agent.
ANSWER: A
138. A statement in lieu of prospectus is required to be issued ___________.
A. by all companies which issue shares or debentures
B. by public companies when shares are issued among friends and relatives.
C. by private companies as they do not issue shares to the public
D. by all companies
ANSWER: B
139. An agreement made without consideration ____________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
140. A promise made without any intention of performing it is ______________.
A. fraud.
B. undue influence.
C. misrepresentation.
D. mistake.
ANSWER: C
141. Share capital of a company means______________.
A. equity share capital .
B. preference share capital
C. equity and preference share capital .
D. equity and preference share capital and debentures
ANSWER: C
142. A shareholder in a company___________.
A. can be its debenture holder
B. cannot be its debenture holder
C. alone can become its debenture holder
D. must also become its debenture holder within a year of being a shareholder
ANSWER: A
143. An agreement enforceable by law is called as ___________.
A. valid contract.
B. voidable contract.
C. executed contract.
D. void contract.
ANSWER: A
144. The ________defines the scope of a company’s activities.
A. prospectus .
B. statutory declaration .
C. memorandum of association .
D. articles of association .
ANSWER: C
145. _________ companies must have their own Articles.
A. Government companies.
B. Unlimited companies.
C. Companies limited by shares.
D. Registered companies.
ANSWER: B
146. The duties of Company Secretary s regarding company meetings are restricted upto_____.
A. before company meeting.
B. during company meeting
C. after company meeting.
D. ln all the above situations
ANSWER: D
147. A private company ________issue deferred shares with disproportionate voting rights.
A. can only
B. can.
C. cannot.
D. can with the prior approval of the government
ANSWER: A
148. Shares can be issued_________.
A. at par.
B. at discount.
C. at premium.
D. all of the above
ANSWER: D
149. Identify those persons who do not enjoy the right of genera lien
A. Finder of goods
B. Factors
C. Bankers
D. None
ANSWER: A
150. Ascertained goods means____ goods
A. Specific
B. General
C. Goods sent for approval basis
D. None
ANSWER: A
