71 + Mcqs in Laws and Ethics Page 1 McqOptions

1.	The term 'sub-agent' in the business of agency is defined as a person employed by, and acting under the control of the
A.	Principal
B.	Original agent
C.	Lawyer
D.	Third person
Answer» C. Lawyer

Discussion

2.	Which of the following is not the mode of dissolution of a firm under voluntary dissolution?
A.	Dissolution by agreement
B.	Dissolution on the happenings of certain contingencies
C.	Dissolution on becoming a partner of unsound mind
D.	Compulsory dissolution
Answer» D. Compulsory dissolution

Discussion

3.	The Regional Director shall communicate the confirmation of shifting of registered office within __________ days of receipt of the application.
A.	15
B.	30
C.	45
D.	90
Answer» C. 45

Discussion

4.	The private placement shall be made, not more than ___________ persons in aggregate in a financial year.
A.	50
B.	100
C.	200
D.	400
Answer» D. 400

Discussion

5.	The company shall not issue sweat equity shares for more than _______________ of the existing paid up share capital in a year.
A.	10%
B.	15%
C.	25%
D.	None of the above
Answer» C. 25%

Discussion

6.	In case of unlisted company the duplicate share certificate shall be issued within a period of-
A.	45 days
B.	3 months
C.	6 months
D.	None of the above
Answer» C. 6 months

Discussion

7.	Intimation of the reconstitution of change in a registered partnership is to be given to the Registrar of firms-
A.	No time limit
B.	Within 30 days
C.	Within 60 days
D.	Within 90 days.
Answer» B. Within 30 days

Discussion

8.	When a professional promotes a position or opinion to such extent that some objectivity may have to be compromised, this threat is known as
A.	Familiarity threat
B.	Objectivity threat
C.	Advocacy threat
D.	Intimidation threat
Answer» D. Intimidation threat

Discussion

9.	Every inspector appointed under the Factories Act or Payment of Wages Act is deemed to be a
A.	Controlling Officer
B.	Labour Welfare Officer
C.	Honorary Magistrate
D.	A Public Servant
Answer» E.

Discussion

10.	In a partnership firm, the decision can be made by rule of majority when decisions relate to
A.	policy matters
B.	ordinary routine matters
C.	financial matters
D.	buying and selling of property
Answer» C. financial matters

Discussion

11.	Application for Director Identification Number (DIN) is to be made to Central Govt. in Form
A.	DIN-1
B.	DIN-2
C.	DIN-3
D.	None of the above
Answer» B. DIN-2

Discussion

12.	The board of directors may appoint additional directors from time to time if so authorized by
A.	Articles of Association
B.	Memorandum of Association
C.	A resolution passed at general meeting
D.	A resolution passed at board meeting
Answer» B. Memorandum of Association

Discussion

13.	In case of banker's refusal to honour the cheque inspite of sufficient funds in customer's account, the banker is
A.	liable to compensate the drawer.
B.	not liable to compensate the drawer .
C.	criminally liable under section 138.
D.	liable to be delisted.
Answer» B. not liable to compensate the drawer .

Discussion

14.	Board of Directors of every listed Company shall constitute an Audit Committee which shall consists of a minimum of
A.	2 Directors
B.	3 Directors
C.	4 Directors
D.	5 Directors
Answer» C. 4 Directors

Discussion

15.	An agreement which is enforceable at the option of one or more parties thereto but not at the option of other or others is called
A.	Void contract.
B.	Voidable contract.
C.	Void agreement.
D.	Unenforceable contract.
Answer» C. Void agreement.

Discussion

16.	Which Committee is constituted by the occupier to promote cooperation between the workers and management in maintaining proper safety and health at workplace?
A.	Safety Committee
B.	Health Committee
C.	Management Workers Consultative Committee
D.	Maintenance Committee
Answer» B. Health Committee

Discussion

17.	The study of ethics can be divided into four operational areas namely meta ethics, normative ethics, descriptive ethics and
A.	Positive ethics
B.	Physical ethics
C.	Applied ethics
D.	Natural ethics
Answer» D. Natural ethics

Discussion

18.	Businessmen or industrialists take initiative to form new companies. Their main function is to manage the company after its promotion, they are known as
A.	Particular Promoters
B.	Occasional Promoters
C.	Professional Promoters
D.	General Promoters
Answer» E.

Discussion

19.	A bill of exchange, that is drawn accepted or endorsed without consideration is called
A.	Accommodation bill
B.	Promissory note
C.	Trade bill
D.	Bearer instrument
Answer» B. Promissory note

Discussion

20.	A prospectus which does not have complete particulars on the price of securities offered and the quantum of securities offered by the company is known as
A.	Statement in lieu of prospectus
B.	Red-herring prospectus
C.	Deemed prospectus
D.	Shelf prospectus
Answer» C. Deemed prospectus

Discussion

21.	Writing of a person's name on the face or back of an instrument or on a slip of paper attached to it is known as
A.	Endorsement
B.	Transfer
C.	Negotiation
D.	Transmission
Answer» B. Transfer

Discussion

22.	In the case of an adjourned meeting the company shall give not less than _____ notice to the members.
A.	1 day
B.	3 days
C.	7 days
D.	None of the above.
Answer» C. 7 days

Discussion

23.	Ethics is a set of _________ of human conduct that govern the behavior of individuals or organizations.
A.	Principles
B.	Standards
C.	Principles or standards
D.	None of the above
Answer» D. None of the above

Discussion

24.	Ankit agrees to pay Bina 1500 if it rains today, otherwise Bina pays Ankit ` 2000. This is a
A.	Gambling
B.	Wagering agreement
C.	Valid agreement
D.	Speculation
Answer» C. Valid agreement

Discussion

25.	"If you contract to sell peas, you cannot oblige a party to have beans" - This statement applies to:
A.	an implied condition as to be description of goods
B.	the implied condition as to fitness of goods for a particular purpose
C.	implied condition as to sample
D.	implied condition as to title
Answer» B. the implied condition as to fitness of goods for a particular purpose

Discussion

26.	Which of these is not a negotiable instrument as per the Negotiable Instrument Act, 1881?
A.	Bill of exchange
B.	Delivery note
C.	Bearer Cheque
D.	Share Certificate
Answer» E.

Discussion

27.	Section 122 of Companies Act, 2013 provides that which of the following provisions are not applicable to an OPC
A.	Section 100: Calling of EGM
B.	Section 101: Notice of Meeting
C.	Section 105: Proxies
D.	All of the above
Answer» E.

Discussion

28.	A company in which either of the Government has no paid-up share capital is called as a _________________ company
A.	Non-Government
B.	Government
C.	Listed
D.	Non-listed
Answer» B. Government

Discussion

29.	A factory employs 250 workers. All the workers including workers above 60 years of age and below 15 years of age went on strike. The employer
A.	can deduct fine from all the workers
B.	cannot deduct fine from workers who are under the age of 15
C.	no fine can be imposed from workers who are 60 years and above
D.	cannot deduct any fine from any worker.
Answer» C. no fine can be imposed from workers who are 60 years and above

Discussion

30.	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 the
A.	Preceding day
B.	Next preceding business day
C.	Same day of next week
D.	3rd day following the day holiday
Answer» C. Same day of next week

Discussion

31.	As per the RBI Act, which of the following negotiable Instruments can be payable to the bearer on demand?
A.	Cheque
B.	Hundi
C.	Bank Draft
D.	Promissory Note
Answer» B. Hundi

Discussion

32.	Workers will be entitled to overtime wages if they have worked for more than ____________.
A.	Forty-eight hours in any four week
B.	Forty-eight hours in any three week
C.	Forty-eight hours in any two week
D.	Forty-eight hours in any week
Answer» E.

Discussion

33.	Where goods are delivered to the buyer and he refuses to accept them, the buyer is not bound to
A.	retain them with him.
B.	look-after the goods.
C.	return them to the seller.
D.	store them in his godown.
Answer» D. store them in his godown.

Discussion

34.	Which of the following agreement is wagering agreement under the Indian Contract Act, 1872?
A.	Crossword competition involving application of skill and knowledge.
B.	Contract of Insurance.
C.	A promise to pay B ` 1,000 if it rains on Monday.
D.	A agrees to pay B `1,000 if he marries C.
Answer» D. A agrees to pay B `1,000 if he marries C.

Discussion

35.	Under Sale of Goods Act, which of the delivery of goods is called as delivery by attornment?
A.	Actual
B.	Symbolic
C.	Constructive
D.	Physical
Answer» D. Physical

Discussion

36.	"Individual pension account" means an account of subscriber, executed by a contract setting out the terms and conditions under the
A.	Provident fund scheme
B.	National pension system
C.	Citizen welfare system
D.	Minimum wage payment scheme
Answer» C. Citizen welfare system

Discussion

37.	Under Factories Act, 1948, where work of the same kind is carried out by two or more sets of workers during different period of the day, each of such period is called a
A.	Relay
B.	Shift
C.	Recess
D.	Overtime
Answer» C. Recess

Discussion

38.	Under Payment of Wages Act, 1936, deduction on account of payment to cooperative societies shall not be more than
A.	50% of wages
B.	75% of wages
C.	90% of wages
D.	60% of wages
Answer» C. 90% of wages

Discussion

39.	Under Employee s State Insurance Act, in order to qualify for sickness benefit, the insured worker is required to contribute for
A.	70 days in a contribution period of 6 months.
B.	78 days in a contribution period of 3 months.
C.	91 days in a contribution period of 3 months.
D.	78 days in a contribution period of 6 months.
Answer» E.

Discussion

40.	Where seller delivers to the buyer a quantity of goods less than the contracted to sell, the buyer
A.	may reject them
B.	should not reject them as more quantity might be supplied.
C.	may resell them
D.	give less price for them.
Answer» B. should not reject them as more quantity might be supplied.

Discussion

41.	A person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it, he is capable of
A.	listening it
B.	hearing it
C.	understanding it
D.	interpreting it
Answer» D. interpreting it

Discussion

42.	A person who is not a partner of a Partnership Firm, but he may liable for firm s debt as if he was a Partner. Such a person is called
A.	Nominal Partner
B.	Sleeping Partner
C.	Partner by estoppels
D.	Partner for profit only
Answer» D. Partner for profit only

Discussion

43.	Where a company issues shares with differential right, the _____ should be maintained under Section 88 of Companies Act, 2013.
A.	List of share-holders
B.	Register of shares
C.	Register of Members
D.	List of shares
Answer» D. List of shares

Discussion

44.	Where the endorser does not want that the endorsee or any other holder to incur any expense on his account is called
A.	Restrictive endorsement
B.	Sans frais endorsement
C.	Conditional endorsement
D.	Unwanted endorsement
Answer» C. Conditional endorsement

Discussion

45.	A proper foundation of ethics requires a standard of _______ to which all goals and actions can be compared to.
A.	value
B.	living
C.	life
D.	speech
Answer» B. living

Discussion

46.	A person who is employed by the seller to raise the price by fictitious bids. Such person is known as
A.	Puffer
B.	By bidder
C.	Decoy Ducks
D.	All of the above
Answer» E.

Discussion

47.	Section 92 of the Companies Act, 2013 requires a company to prepare and file annual return in form no.
A.	MGT-12
B.	INC-23
C.	MGT-7
D.	SH-10
Answer» D. SH-10

Discussion

48.	K owns a residential flat in Chennai. He is entitled to quiet possession and enjoyment of his property. This is called
A.	Rights in Personam
B.	Rights in Rem
C.	Constitutional Right
D.	There is no right at all
Answer» C. Constitutional Right

Discussion

49.	If any default is made in filing refund of money, the company and every officer, who is in default shall be liable to a penalty maximum up to
A.	` 50,000
B.	` 75,000
C.	` 1,00,000
D.	` 1,25,000
Answer» D. ` 1,25,000

Discussion

50.	X sells the goodwill of his retail store to Y for `5 lacs and promises not to carry on the same business for ever and anywhere in India. This agreement is:
A.	Valid
B.	Void
C.	Voidable
D.	Illegal
Answer» C. Voidable

Discussion

Explore topic-wise MCQs in Cost Accounting.

The term 'sub-agent' in the business of agency is defined as a person employed by, and acting under the control of the

Which of the following is not the mode of dissolution of a firm under voluntary dissolution?

The Regional Director shall communicate the confirmation of shifting of registered office within __________ days of receipt of the application.

The private placement shall be made, not more than ___________ persons in aggregate in a financial year.

The company shall not issue sweat equity shares for more than _______________ of the existing paid up share capital in a year.

In case of unlisted company the duplicate share certificate shall be issued within a period of-

Intimation of the reconstitution of change in a registered partnership is to be given to the Registrar of firms-

When a professional promotes a position or opinion to such extent that some objectivity may have to be compromised, this threat is known as

Every inspector appointed under the Factories Act or Payment of Wages Act is deemed to be a

In a partnership firm, the decision can be made by rule of majority when decisions relate to

Application for Director Identification Number (DIN) is to be made to Central Govt. in Form

The board of directors may appoint additional directors from time to time if so authorized by

In case of banker's refusal to honour the cheque inspite of sufficient funds in customer's account, the banker is

Board of Directors of every listed Company shall constitute an Audit Committee which shall consists of a minimum of

An agreement which is enforceable at the option of one or more parties thereto but not at the option of other or others is called

Which Committee is constituted by the occupier to promote cooperation between the workers and management in maintaining proper safety and health at workplace?

The study of ethics can be divided into four operational areas namely meta ethics, normative ethics, descriptive ethics and

Businessmen or industrialists take initiative to form new companies. Their main function is to manage the company after its promotion, they are known as

A bill of exchange, that is drawn accepted or endorsed without consideration is called

A prospectus which does not have complete particulars on the price of securities offered and the quantum of securities offered by the company is known as

Writing of a person's name on the face or back of an instrument or on a slip of paper attached to it is known as

In the case of an adjourned meeting the company shall give not less than _____ notice to the members.

Ethics is a set of _________ of human conduct that govern the behavior of individuals or organizations.

Ankit agrees to pay Bina 1500 if it rains today, otherwise Bina pays Ankit ` 2000. This is a

"If you contract to sell peas, you cannot oblige a party to have beans" - This statement applies to:

Which of these is not a negotiable instrument as per the Negotiable Instrument Act, 1881?

Section 122 of Companies Act, 2013 provides that which of the following provisions are not applicable to an OPC

A company in which either of the Government has no paid-up share capital is called as a _________________ company

A factory employs 250 workers. All the workers including workers above 60 years of age and below 15 years of age went on strike. The employer

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 the

As per the RBI Act, which of the following negotiable Instruments can be payable to the bearer on demand?

Workers will be entitled to overtime wages if they have worked for more than ____________.

Where goods are delivered to the buyer and he refuses to accept them, the buyer is not bound to

Which of the following agreement is wagering agreement under the Indian Contract Act, 1872?

Under Sale of Goods Act, which of the delivery of goods is called as delivery by attornment?

"Individual pension account" means an account of subscriber, executed by a contract setting out the terms and conditions under the

Under Factories Act, 1948, where work of the same kind is carried out by two or more sets of workers during different period of the day, each of such period is called a

Under Payment of Wages Act, 1936, deduction on account of payment to cooperative societies shall not be more than

Under Employee s State Insurance Act, in order to qualify for sickness benefit, the insured worker is required to contribute for

Where seller delivers to the buyer a quantity of goods less than the contracted to sell, the buyer

A person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it, he is capable of

A person who is not a partner of a Partnership Firm, but he may liable for firm s debt as if he was a Partner. Such a person is called

Where a company issues shares with differential right, the _____ should be maintained under Section 88 of Companies Act, 2013.

Where the endorser does not want that the endorsee or any other holder to incur any expense on his account is called

A proper foundation of ethics requires a standard of _______ to which all goals and actions can be compared to.

A person who is employed by the seller to raise the price by fictitious bids. Such person is known as

Section 92 of the Companies Act, 2013 requires a company to prepare and file annual return in form no.

K owns a residential flat in Chennai. He is entitled to quiet possession and enjoyment of his property. This is called

If any default is made in filing refund of money, the company and every officer, who is in default shall be liable to a penalty maximum up to

X sells the goodwill of his retail store to Y for `5 lacs and promises not to carry on the same business for ever and anywhere in India. This agreement is: