KRISHNA UNIVERSITYDEPARTMENT OF BUSINESS ADMINISTRATION

MBA 208 BUSINESS LAWSQuestion bank for online IV mid semester examinations

1. Law is the body of principles enforced by ----------------. ( c )(a) agreements(b) obligations(c) judiciary(d) contract

2. Indian Contract Act came in to existence in the year ------------. ( a ) (a) 1872(b) 1873(c) 1874(d) 1875

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 )(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 -------------- ( d )(a) fraud(b) misrepresentation(c) mistake(d) all the above

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) capacity(b) consideration(c) competence(d) certainty

8. The term revocation means -------------. ( a )(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 -----------. ( b )(a) specific person only(b) anyone(c) Offerer(d) Promiser

11. A continuous offer is called --------------. ( d )(a) specific offer(b) general offer(c) express offer(d) standing offer

12. -------- is not the competent person to enter in to contract. ( b )

(a) major(b) person of unsound mind(c) person qualified by law(d) person of sound mind

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

14. A stranger to a contract ---------. ( b )(a) can sue(b) cannot sue(c) both (a) & (b)

(d) None of the above

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

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 )(a) factors(b) commission agents(c) house agents(d) law agents

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

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 ----------. ( d ) (a) wholesomeness(b) fitness for particular purpose(c) sale by sample (d) all the above

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 --------. ( c )(a) agreement(b) business(c) mutual agency(d) sharing of profits

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 --------------. ( b )(a) 1st April, 1955 (b) 1st April, 1956(c) 1st May, 1956(d) 1st May, 1955.

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---------. ( b )(a) 6(b) 7(c) 8(d) 9

44. The maximum number of members in private company is -------. ( d )(a) 20(b) 30(c) 40(d) 50

45. In --------- company, the shares are freely transferable. ( b )(a) Private company(b) Public company(c) Statutory company(d) Chartered company

46. ----------- company has to issue a prospectus. ( c )(a) Private company(b) Statutory company(c) Public company(d) Chartered company

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 )(a) promotion (b) organization(c) investigation(d) dissolution

51. The usual way of receiving of receiving remuneration is ( d )(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

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 ----------- ( c )(a) authorized capital(b) nominal capital(c) subscribed capital(d) registered capital

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 --------. ( d )(a) Injunction(b) Personal liability of directors(c) Ultra vires torts(d) All the above

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 ----------. ( c )(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 )(a) Constructive notice(b) Indoor management(c) Both (a) & (b)(d) None of the above

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. ( d )(a) Application(b) Transfer(c) Subscribing the memo(d) All the above

65. ------------ can be a member in a company. ( c )(a) minor(b) insolvent(c) company(d) partnership firm

66. -------------- mode of termination of membership ( d )(a) shares are sold(b) rescinds the contract(c) valid surrender of shares(d) all the above

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) Reserve capital(b) Paid-up capital(c) Equity capital(d) 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 ---------. ( b ) (a) transfer shares

(b) transmission of shares(c) Both (a) & (b) (d) None of the above

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) Extraordinary (b) Class meetings(c) Creditors meeting(d) 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. ( d )

(a) capitalization(b) bonus(c) interest(d) interim

83. Unjust or unfair conduct is called ----------. ( c )(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) Winding up (b) Dissolution(c) Liquidation(d) contribution

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

86. ------------ is empowered to remove managerial personnel from office in a company. ( b )

(a) State government (b) Central Government(c) Company Law Board(d) 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 --------. ( d )(a) 1971(b) 1972(c) 1973(d) 1974

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

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 ------- . ( c )(a) 1984(b) 1985(c) 1886(d) 1987

93. Contract Labor Act was introduced in the year --------. ( b )(a) 1969(b) 1970 (c) 1971(d) 1972

94. Nepal’s forests are now being restored through ---------control. ( c )(a) State Government(b) Central Government(c) Community(d) None of the above

95. The Air Act was introduced in the year ------------. ( a )(a) 1981(b) 1982(c) 1983(d) 1984

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 ----------------. ( c )(a) Formation(b) Communication(c) Withdrawal(d) Rejection

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 )(a) Standing offer(b) Invitation(c) Conditional Offer(d) Tender

100. If consideration is unlawful, the contract is ------. ( c )(a) Unenforceable(b) Void(c) Unenforceable & Void(d) None of the above