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34. State who is competent to contracts:

A minor A person of sound mind A lunatic A purdanasheen woman

35. When are the essential elements of a valid contract:

Offer and acceptance Lawful consideration Capacity of parties All of the above

36. When one person signifies to another his willingness to do or to abstain from doing anything it is known as:

Proposal Offer Agreement Contract

37. What is the effect of wagering agreements:

Agreement is void No suit shall be filed Void and not illegal All of the above

38. A contract is:

A legal obligation An agreement plus a legal obligation Consensus ad idem An agreement plus a legal object

39. Which of the following result/results in an offer?

A declaration of intention An invitation to offer An advertisement offering reward to anyone who finds the lost dog of the advertiser An offer made in a joke

40. A special offer can be accepted by:

Any person Any friend of offerer The person to whom it is made Any friend of offeree

41. An acceptance is not according to the mode prescribed but the offerer decides to keep quiet. In such case there is:

A contract No contract A voidable contract An enforceable contract

42. There is a counter offer when:

The offeree gives conditions for acceptance or introduces a fresh term in acceptance The offerer makes a fresh offer The offeree makes some query The offeree accepts it

43. Acceptance may be revoked by the acceptor:

At any time Before the letter of acceptance reaches the offerer After the letter of acceptance reaches the offerer Before the death of the acceptor

44. An advertisement to sell a thing by auction is:

An offer An invitation to offer No offer at all A contract

45. A makes an offer to B on 10th by a letter which reaches B on 12th. B posts a letter of acceptance on 14th which reaches A on 16th. The communication of acceptance is complete as against A on:

12th 14th 16th 17th

46. An agreement made without consideration is:

< input type="radio" name="q46" value="A"> Valid Illegal Voidable Void

47. A promises to subscribe to a charity. The promise is a:

Valid contract Voidable contract Void contract Void agreement

48. Consideration in a contract:

May be past, present or future May be present or future only Must be present only Must be future only

49. A promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor is enforceable:

Enforceable Not enforceable because it is without consideration Void Voidable

50. Where consent is caused by fraud or misrepresentation, the contract is:

Voidable at the option of the aggrieved party Void Enforceable Not affected in any manner

51. Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement, the agreement is:

Void Voidable Illegal Not affected at all

52. What are the requisites of fraud?

A representation or assertion and it must be false The representation or assertion must be of a fact The representation or assertion must have been made with a knowledge of its falsity or without belief in its truth or recklessly Any of the above

53. A valuable consideration in the eyes of law may consist of:

Right, Interest, Profit or Benefit to one party Forbearance, detriment, loss or responsibility by other person Either of (a) or (b) Both (a) or (b)

54. An agreement with or by a minor is:

Void Voidable at the option of the minor Voidable at the option of the other party Valid

55. On attaining the age of maturity a minor's agreement:

Can be ratified by him Cannot be ratified by him Becomes void Becomes valid

56. A minor enters into a contract for the purchase of certain necessaries. In such a case:

He can be sued for fraud He cannot be sued for fraud He is liable to return the money None of the above

57. Contracts made before war with an alien enemy which are against public policy are:

Suspended and are revived after the war is over Dissolved Not affected at all Void ab initio

58. When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true, there is:

Misrepresentation Fraud Undue influence Coercion

59. A promise made without the intention of performing it amounts to:

Innocent misrepresentation Fraud Negligent misrepresentation Wrongful misrepresentation

60. A bailee has a right of particular lien over the goods bailed:

A right of particular lien over the goods bailed A right of general lien A right of both particulars and general lien No lien at all over the goods bailed

61. The position of a finder of lost goods is that of a:

Bailor Bailee Surety Principal debtor

62. A bailee fails to return the goods according to the bailor's direction. He takes reasonable care of the goods but still the goods are lost. The loss will fall on:

The bailee The bailor On both of them Neither of them

63. A who purchases certain goods from B by a misrepresentation pledges them with C. The pledge is:

Valid Void Voidable Invalid

64. A contract of indemnity is:

A contingent contract A wagering contract A quasi contract A void agreement

65. The definition of a contract of indemnity as given in the Indian Contract Act, 1872 includes:

Express promises to indemnity Implied promises to indemnity Cases where loss arises from accidents and events not depending on the conduct of the promisor or any other person Cases where the loss is caused by the conduct of the promisor himself or by the conduct of any other person

66. Where there are co-sureties, a release by the creditor of one of them:

Discharges the other co-sureties Does not discharge the other co-sureties Makes all the co-sureties immediately liable Makes the contract of guarantee void

67. A guarantee obtained by a creditor by keeping silence as to material circumstances is:

Valid Voidable Enforceable Invalid

68. A quasi contract:

Is a contract Is an agreement Creates only a legal obligation Is none of these

69. When an agreement is discovered to be void, any person who has received any advantage under such agreement:

Is bound to restore it Is not bound to restore it Is not bound to return it May retain it

70. A minor has been supplied necessaries on credit:

He is not liable He is personally liable His estate is liable He is not personally liable

71. A finder of lost goods is a:

Bailor Bailee True owner Thief

72. Quantum meruit means:

A non-gratuitous An implied promise As much as is earned As much as is paid

73. A agreed to sell 100 shares to B at Rs 75 per share, delivery to be given on 1st March. B refused to accept delivery on 1st March as price had gone down to Rs 60 per share. Subsequently, A sold these shares at Rs 92 per share. A cannot recover any damages from B:

A can recover damages to be determined by the President of the stock exchange A will have to restore to B Rs 1700, i.e., the profit he made None of them A can recover damages

74. Anticipatory breach of a contract takes place:

During the performance of the contract At the time when the performance is due Before the performance is due At the time when the contract is entered into

75. Specific performance may be ordered by the court when:

The contract is voidable Damages are an adequate remedy Damages are not an adequate remedy The contract is uncertain

76. A undertakes to paint a picture of B. He dies before he paints the picture. The contract is discharged by:

Death Voidable at the option of B Voidable at the option of the legal representatives of A Will have to be performed by the legal representatives of A

77. A creditor agrees with his debtor and a third to accept that third party as his debtor:

Performance Alteration Waiver Remission

78. A lends Rs 500 to B. He later tells B that he need not repay the amount. The contract is discharged by:

Breach Waiver Novation Performance

79. If a new contract is substituted in place of an existing contract, it is called:

Alteration Rescission Novation Waiver

80. Which of the following are contingent contracts?

Contracts of insurance Contracts of guarantee Wagering agreements (a) and (b)

81. An agreement to do an impossible act is:

Void Voidable Illegal Enforceable under certain circumstances

82. A wagering agreement is:

Forbidden by law Immoral Opposed to public policy None of these

83. The collateral transactions to an illegal agreement are:

Void Illegal Voidable Not affected at all

84. A person enters into an agreement whereby he is bound to do something which is against his public or professional duty. The agreement is:

Void on the ground of public policy Valid Voidable Illegal

85. The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to:

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Cheques Bills of exchange Promissory notes All of the above

86. “Banker” includes:

Any person acting as an employee of any bank and any post office saving bank. Any person acting as a banker and any post office saving bank. Any person acting as an agent of any bank and any post office saving bank. Any person acting as a Managing Director of any bank and any post office saving bank.

87. Which is NOT an example of “Promissory Note”:

I acknowledge myself to be indebted to B in ` 1,000, to be paid on demand, for value received. Mr B, I.O.U ` 1,000. “I promise to pay B or order ` 500” None of the above

88. In a Promissory Note, how many parties are involved:

1 2 3 4

89. Which is NOT correct about the “Promissory Note”:

It contains a conditional undertaking. It contains the amount mentioned on it. It is an instrument in writing. It is signed by the maker.

90. The Negotiable Instruments Act, 1881 extends to:

Only to Capital cities of the States. The whole of India. The whole of India except the State of Jammu and Kashmir. The whole of India except the Union Territories.

91. The Negotiable Instruments Act makes specific mention of three instruments namely cheque, bill of exchange and:

Promissory note Hundi Bank draft Customary note

92. Which one of the following is not the characteristic of a negotiable instrument?

It must be in writing It must be freely transferable It must be registered It must contain definite amount of money

93. A bill of exchange is treated as dishonoured due to non-acceptance, where the drawee:

Does not accept within 48 hours of presentment Is incompetent to contract Gives a conditional acceptance In all the above cases

94. A person becomes a 'holder in due course' of a negotiable instrument if he receives it:

In good faith For value Before maturity By satisfying all these

95. A negotiable instrument payable to order can be transferred by:

Simple delivery Indorsement Indorsement and delivery Registered post

96. In case, back of a negotiable instrument is full of indorsements a slip of paper may be attached to the instrument for signing indorsements. Such a slip is legally known as:

Allonge Escrow Zikri chit Peth

97. Material alteration of a negotiable instrument, without the consent of the parties discharges the parties who have become liable:

After such alteration Prior to such alteration Because of alteration Without such alteration

98. After receiving an uncrossed cheque, its holder can make on it:

General crossing Special crossing Either (a) or (b) Neither (a) nor (b)

99. The payment of a cheque, containing special crossing can be obtained:

At the counter By depositing in account By the payee only Both (a) and (c)

100. A negotiable instrument made without any consideration at all, is:

Void between all parties Voidable between all parties Void between immediate parties Voidable between immediate parties

101. Inchoate instrument is:

An instrument incomplete in some respect An ambiguous instrument A clean bill Drawn conditionally as collateral security

102. A failure to present a negotiation instrument should be presented for payment to the party who is:

Primarily liable Secondarily liable Willing to make payment Capable of making payment

103. A negotiation instrument is said to be discharged when the liability of which of the following parties comes to an end?

Primarily liable party Secondarily liable party Subsequently liable party None of the parties

104. The undertaking contained in a promissory note, to pay a certain sum of money is:

Conditional Unconditional May be conditional or unconditional depending upon the circumstances None of the above

105. Which of the following negotiable instrument is not entitled to days of grace?

A bill of exchange payable on specified date A promissory note payable on specified date A promissory note payable 'after sight' A cheque, is always payable on demand

106. After the dishonour of a negotiable instrument, the holder may get the fact of dishonour authenticated by a Notary Public. The 'noting' may be done in case of:

Promissory note Bills of exchange Cheque Both (a) and (b)

107. A cheque is said to contain a special crossing when two parallel lines are drawn across the face of the cheque and writing between the lines:

Name of some bank Name of some bank and '& Co' A/c payee only In (a) and (b) cases

108. A Promissory Note must be:

In writing Unconditional Signed by the maker All of the above

109. A bill is discharged when its acceptor by negotiation back, becomes its holder:

At maturity After maturity Before maturity Either (a) or (b)

110. The presentment for sight is required only in case of a promissory note. Which of the following note must be presented for sight?

A note payable at sight A note payable after sight A note payable on demand All of the above

111. A bill of exchange payable to bearer on demand is:

Valid Voidable Invalid None of these

112. The term 'customer' in relation to a banker, means a person who keeps with a banker:

Current account for six months Deposit account for six months Both accounts for six months Either account irrespective of duration

113. The payment of a negotiable instrument becomes due:

At maturity Before maturity After maturity On 3rd day of maturity

114. In case, the rate of interest is not specified in the instrument, the interest payable is calculated at per annum rate of:

Six percent Nine percent Twelve percent Eighteen percent

115. An act of a firm means:

Any partner or agent of the firm which gives rise to a right enforceable by or against the firm Any act by all the partners Any omission by all the partners All of the above

116. Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Does it mean that losses are not shared?

A minor may be admitted in partnership, only for the profits, but he cannot share in losses. It also depends on the partnership agreement. A person may share the profits but may not share in losses. Sharing" of profits also include losses (negative profits). All of the above.

117. Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is called as:

Particular partnership Partnership for a fixed term Partnership at will None of the above

118. What information shall be given to the Registrar of Firms by a registered partnership firm:

New opening/closing of the existing branch, if any. Change in the name of and address of the partner(s)/change in the constitution of the firm What there is change in the name of the firm or in location of the principal place of business All of the above.

119. Who can inspect the Register and filed documents at the office of the Registrar:

Any Government servant The Partners of the firm The partners of the other firms Any person

120. What are the rights of partners after dissolution:

To have the surplus distributed among the partners or their representatives according to their rights To have business wound up after dissolution To have the property of the firm applied in payment of the debts and liabilities of the firm All of the above

121. Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of:

9% p.a. 18% p.a. 6% p.a. 12% p.a.

122. The dissolution of partnership means:

It means the dissolution of partnership between all the partners of a firm It means the change in the relations of the partners It means the reconstitution of the firm None of the above

123. In what circumstances a partner may retire:

In accordance with an express agreement by the partners Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire With the consent of all the other partners All of the above

124. What would be the position, where a minor elects not to become a partner:

He shall be entitled to sue the partners for his share of the property and profits His rights and liabilities shall continue to be those of a minor under this section up to the date on which he gives public notice His share shall not be liable for any acts of the firm done after the date of the notice All of the above

125. The maximum number of partners in a firm carrying on banking business cannot exceed:

5 10 15 20

126. There is no provision in the partnership deed regarding the duration of partnership. This is:

Partnership at will Partnership for an indefinite period Partnership by estoppel Partnership not recognized by law

127. Registration of a firm under the Partnership Act, 1932 is:

Compulsory Not optional Not necessary Inevitable

128. A nominal partner is:

Liable for the debts of the firm Not liable for the debts of the firm Liable for a nominal sum One whose liability is primary

129. If a minor chooses to become a partner on attaining the age of majority, he will be liable for the debts of the firm:

From the date of his attaining majority From the date of his admission to the benefits of the partnership From the date of his election to become a partner of the firm From the date of his attaining majority or election which is earlier

130. Public notice is not given on the death of a partner but the firm continues the business. For the acts of the firm done after his death:

The estate of the deceased partner is liable The estate of the deceased partner is not liable His legal representatives are personally liable None of these

131. The position of a minor partner is dealt with in the Indian Partnership Act, 1932 in:

Sec. 25 Sec. 29 Sec. 30 Sec. 35

132. Where a partner is entitled to interest on capital subscribed by him, such interest will be payable:

Only out of profit Only out of capital Out of profits or out of capital None of these

133. A change in the nature of the business of a firm can be made if:

The majority of the partners agree The senior partners agree All the partners agree The working partners agree

134. In the absence of any agreement, interest on advances by a partner is allowed at:

15% 6% Allowed at market rate of interest Not allowed at all

135. An act of a firm means:

Any partner or agent of the firm which gives rise to a right enforceable by or against the firm Any act by all the partners Any omission by all the partners All of the above

136. Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Does it mean that losses are not shared?

A minor may be admitted in partnership, only for the profits, but he cannot share in losses. It also depends on the partnership agreement. A person may share the profits but may not share in losses. Sharing of profits also include losses (negative profits). All of the above.

137. Who can inspect the Register and filed documents at the office of the Registrar:

Any Government servant The Partners of the firm The partners of the other firms Any person

138. What are the rights of partners after dissolution:

To have the surplus distributed among the partners or their representatives according to their rights To have business wound up after dissolution To have the property of the firm applied in payment of the debts and liabilities of the firm All of the above

139. Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of:

9% p.a. 18% p.a. 6% p.a. 12% p.a.

140. The dissolution of partnership means:

It means the dissolution of partnership between all the partners of a firm It means the change in the relations of the partners It means the reconstitution of the firm None of the above

141. In what circumstances a partner may retire:

In accordance with an express agreement by the partners Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire With the consent of all the other partners All of the above

142. What would be the position, where a minor elects not to become a partner:

He shall be entitled to sue the partners for his share of the property and profits His rights and liabilities shall continue to be those of a minor under this section up to the date on which he gives public notice His share shall not be liable for any acts of the firm done after the date of the notice All of the above

143. After a partner’s death, the business is continued in the old firm name. Whether the legal heirs of the deceased partner are liable for any acts of the firm:

The continued use of the name or of the deceased partner’s name as a part thereof shall not of itself make his legal representative or his estate liable for any act of the firm done after his death. If the estate of the deceased person’s property is insufficient to make good, the personal assets of the legal heirs will be liable for any of the acts done by the firm. The estate of the deceased person is liable for any of the act done by the firm. The legal heirs of the deceased partners shall be liable for any of the act done by the firm after the demise of the partner.

144. The partners in a firm may, by contract between the partners:

Restrict the implied authority of any partner Extend the implied authority of any partner None of the above Both A and B are correct

145. Whether a notice given to a partner, who habitually acts in the business of the firm of any matter relating to the affairs of the firm, will be deemed as notice to the firm:

It will be deemed as personal information to that partner Yes, it operates as notice to the firm, except in the case of a fraud on the firm committed by or with the consent of that partner It depends on the nature of the concerned partner whether he informs so to other partners No, it will not be deemed as notice to the firm

146. What would be the position where a minor elects to become a partner?

His share in the property and profits of the firm shall be the share to which he was entitled as a minor His rights and liabilities as a minor continue up to the date on which he becomes a partner He also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership All of the above

147. Where a partner has paid a premium on entering into partnership of a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, whether any repayment of the premium is permissible:

He will not be entitled for repayment of the premium if the dissolution is mainly due to his own misconduct He will not be entitled for repayment of the premium if the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it He shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner All of the above

148. Whether a partner after dissolution of the partnership firm can carry on the business in the erstwhile business name of the firm:

He can use the business name of the dissolved firm if he has brought the goodwill of the firm He can’t use the business name of the dissolved firm He can use the business name of the dissolved firm, provided there was a contract between the partners of the dissolved firm Both the points mentioned at A and C are correct

149. The State Government may appoint Registrars of Firms for the purposes of this Act, every Registrar shall be deemed:

To be a Central Government Servant To be a public servant within the meaning of section 21 of the Indian Penal Code To be State Government Servant To be a private servant

150. Non-registration of a firm will not affect:

The right of the partner to sue for the dissolution of the firm, or for the accounts of the dissolved firm, or for share of the property of the dissolved firm The right to any suit or claim of set-off not exceeding Rs. 100 in value The right of a firm or partners of a firm having no place of business in India Both (A) or (B)

151. How a firm may be dissolved:

A firm may be dissolved by the Court order A firm may be dissolved by certain contingencies A firm may be dissolved in accordance with a contract between the partners All of the above

152. Where a partner has become of unsound mind the court may:

Dissolve on the petition of any partner Not dissolve the firm Order the other partners to continue None of these

153. If the assets of a firm are insufficient to discharge the debts and liabilities of the firm, the partners shall bear the deficiency:

In the profit-sharing ratio In the capital ratio Equally As determined by the court

154. On attaining the majority, the minor partner has to decide and give a public notice within the prescribed period, whether he will continue as partner in the firm or will quit. What is that prescribed period:

Within twelve months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later Within three months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later Within six months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later Within nine months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later

155. In which conditions a person may be deemed as partner by estoppels or holding out:

When he by his conduct represents himself to be a partner in a firm When knowingly permits himself to be represented, to be a partner in a firm When he expressly by words spoken or written lets the others know that he is a partner in a firm All of the above

156. M/s XYZ is a partnership firm and X, Y, and Z are the partners. During the course of business travel, partner X recovered a sum of Rs. 15000 in cash from the debtor of the firm and credited it to his personal bank account. The act of X will amount to:

After utilizing the amount for a few days, he returned back the money to the firm, so it will not come under the misappropriation of the funds Nothing wrong in it, since he has personally made efforts in realizing the dues from the debtor Misappropriating the funds of the firm and utilization of the same for personal gain None of the above

157. What is the liability of a retiring partner, after the date of his retirement?

He shall not be liable for the act done by other partners during his tenure in the partnership firm He and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until public notice is given of the retirement He shall be liable for the acts done by him only on behalf of the firm during his tenure, towards the third party Only A and B are correct

158. A limited liability partnership is:

Not a separate entity from that of its partners A legal entity separate from that of its partners A body corporate Only B and C are correct

159. A LLP shall be governed by the provisions of:

The Companies Act, 2013 The Limited Liability Partnership Act, 2008 The Co-operative Societies Act, 1912 The Indian Partnership Act, 1932

161. How many designated partners are required in LLP:

At least two designated partners Seven designated partners Two designated partners At least seven designated partners

162. The LLP shall file the Statement of Account and Solvency in the prescribed form. Which is this Form:

Form 8 Form 7 Form 6 Form 5

163. Who is the authority to grant compounding of offence under the LLP Act:

The Registrar of Firms The Central Government The Registrar The Registrar of Co-operatives

164. What is the time limit within which LLP shall file Annual Return with the Registrar:

Within 30 days of closure of its financial year Within 45 days of closure of its financial year Within 60 days of closure of its financial year Within 15 days of closure of its financial year

165. Which of the following is true about a Limited Liability Partnership?

A Limited Liability Partnership is not a distinct entity from its partners A Limited Liability Partnership is a legal entity separate from its partners A Limited Liability Partnership is a body corporate Both b and c are correct

166. Which of the following is true about the number of designated partners required in a Limited Liability Partnership?

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A Limited Liability Partnership can have at least two designated partners A Limited Liability Partnership can have at least three designated partners A Limited Liability Partnership can have at least seven designated partners A Limited Liability Partnership can have at least four designated partners

167. Every Limited Liability Partnership must maintain its books of accounts diligently. Those books of accounts should maintain:

Particulars of the receipts and expenditures at the Limited Liability Partnership with the details of those transactions An inventory of the cost of goods purchased, work in progress, inventories, finished goods as well as the cost of goods sold A complete record of the assets and liabilities of the Limited Liability Partnership All of the above

168. As per Sale of Goods Act, this is not included:

A Limited Liability Partnership should maintain its accounts at the branch office A Limited Liability Partnership should maintain its accounts at the corporate office A Limited Liability Partnership should maintain its accounts at the head office A Limited Liability Partnership should maintain its accounts at the registered office

169. As per Sale of Goods Act, this is not included:

A Limited Liability Partnership should maintain its books of accounts on the accrual basis A Limited Liability Partnership should maintain its books of accounts on the cash basis A Limited Liability Partnership should maintain its books of accounts based on the double-entry system of accounting All of the above

170. LLP shall file its Annual Return in which form:

Form 12 Form 11 Form 10 Form 9

171. The audit of accounts of every LLP is not compulsory if its:

Turnover does not exceed in any financial year, Rs 40 lakh or whose contribution does not exceed Rs 25 lakh Turnover does not exceed, in any financial year, Rs 30 lakh, or whose contribution does not exceed Rs 25 lakh Turnover does not exceed, in any financial year, Rs 20 lakh, or whose contribution does not exceed Rs 25 lakh Turnover does not exceed, in any financial year, Rs 10 lakh, or whose contribution does not exceed Rs 25 lakh

172. The Limited Liability Partnership Act, 2008 came into force on:

21st March 2009 23rd March 2009 31st March 2009 30th March 2009

173. Which of the following cannot be converted into LLP?

Partnership firm Private company Listed company Unlisted company

174. The approved name of LLP shall be valid for a period of:

1 Month 2 Months 3 months 6 months

175. For the purpose of LLP, Resident in India means:

Person who has stayed in India for a period of not less than 182 days during the current year Person who has stayed in India for a period of not less than 180 days during the immediately preceding one year Person who has stayed in India for a period of not less than 181 days during the immediately preceding one year Person who has stayed in India for a period of not less than 182 days during the immediately preceding one year

176. In which kind of partnership one partner has unlimited liability and other partner have limited liability?

Partnership-at-will Limited liability partnership General partnership Particular partnership

177. Any change in the partners of a limited liability partnership:

May be made only with the permission of the Registrar Shall not affect the existence, rights or liabilities of the limited liability partnership Shall affect its existence Shall affect the rights or liabilities of the limited liability partnership

178. What is the filing fee for LLP in case where the contribution of LLP exceeds Rs Five lakh but does not exceed Rs Ten lakh:

Rs.150 Rs.200 Rs.100 Rs.50

179. A limited liability partnership shall, where a person becomes or ceases to be a partner and where there is any change in the name and address of the partner, file a notice with the Registrar:

Within thirty days from the date he becomes or ceases to be a partner Within sixty days from the date he becomes or ceases to be a partner Within fifteen days from the date he becomes or ceases to be a partner Within forty-five days from the date he becomes or ceases to be a partner

180. Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be:

An Indian resident A person of foreign nationality A resident in India A person having an Indian Passport

181. In terms of section 23 (2) of the LLP Act, 2008, every LLP shall file information with regard to the LLP agreement in the prescribed form, with the Registrar within thirty days of the date of information. What is the prescribed Form No.:

Form No.2 Form No.3 Form No.4 Form No.1

182. Maximum number of persons in a LLP is:

50 100 20 No limit

183. Duration of LLP is:

Limited Depends on the partnership agreement Extends up to proper dissolution (perpetual succession) None of the above

184. The _______ is responsible for doing all acts, matters and things as are required to be done by LLP as per the Act:

Designated partner Active partner Designated director All the partners

185. Which of the following enjoys separate legal entity status?

Partnership firm LLP Company Both b and c are correct

186. What is the primary advantage of a limited liability partnership (LLP)?

Limited liability for all partners Unlimited liability for all partners Tax advantages for partners Ease of formulation

187. In an LLP, which of the following is true regarding the personal assets of partners?

Personal assets are fully protected from business liabilities Personal assets are liable for business debts Personal assets are partially liable for business debts Personal assets are only liable if there is fraud

188. Which document is required to establish an LLP?

Articles of Association LLP Agreement Memorandum of Association Certificate of Incorporation

189. Who is responsible for the day-to-day management of an LLP?

All partners equally The managing partner(s) An appointed board of directors A hired management team

190. In an LLP, which partner is typically responsible for signing contracts and legal documents on behalf of the partnership?

Silent partner Active partner Managing partner Limited partner

191. What type of professions are often required to form a Limited Liability Partnership (LLP) in certain jurisdictions?

Medical professionals Lawyers Chartered Accountants All of the above

192. In an LLP, which partners are typically not involved in the day-to-day operations and decision making?

Limited partners General partners Managing partner Silent partners

193. What is the primary disadvantage of an LLP compared to a corporation?

Limited Liability for partners Ease of formation Taxation Lack of perpetual existence

194. How many schedules are available in the LLP Act?

2 schedules 4 schedules 1 schedule Schedule not prescribed

195. Age of adolescent worker is:

10 14 18 21

196. Certificate of fitness to be a young worker is to be granted by:

Occupier of the factory Inspector of the factory Certifying surgeon None of the above

197. White wash or color wash should be carried out at least once in every period of:

14 months 24 months 48 months 60 months

198. Where more than _______ workers are employed, provision shall be made for cool drinking water during hot weather.

100 250 500 1000

199. Shelter rooms with suitable lunch rooms are to be provided, if more than ____ workers are employed.

100 250 500 None of the above

200. No female child shall be allowed to work in any factory except between:

8 a.m. and 7 p.m. 6 p.m. and 6 a.m. 6 a.m. and 7 p.m. 10 p.m. and 5 a.m.

201. Compensatory holidays are to be availed within:

1 month 2 months 6 months 9 months

202. Which one of the following amounts to a safety measure?

Artificial humidification Ventilation Fencing of factory First aid appliances

203. Identify from the following which is the power of Inspector of Factory:

Enter into any place of a factory Make inquiry into any accident Seize or take copies of any document All the above

204. Weekly holiday shall be:

First day of the week Last day of the week Third day of the week None of the above

205. Which does not amount to retirement?

Retrenchment Resignation Dismissal Superannuation

206. Gratuity is payable to an employee:

On his superannuation Retirement Retrenchment In all the above cases

207. The gratuity payable to an employee shall not exceed:

12 months pay 16 months pay 20 months pay 24 months pay

208. The employer shall display an abstract of the Act and the Rules in Form No-:

U H O N

209. If sufficient cause is shown, the appropriate Government may condone the delay in filing appeal against the order of the Controlling Authority, for:

30 days 60 days 90 days No time limit

210. Nomination is to be made by an employee:

Immediately on his appointment After completion of one year service After he is made permanent None of the above

211. Which one of the following is to be included in the definition of ‘wage’?

Dearness allowance Overtime allowance Commission House rent allowance

212. If an employer intends to close the business he is to send notice to the Controlling Authority within________ before the intended closure.

10 days 30 days 60 days 90 days

213. Nomination is to be filed in ________________.

Single form Duplicate Triplicate Quadruplicate

214. Which will not amount to service of notice under the rule?

Personal service By registered post By courier Both a and b

215. Which one of the following will not include in the definition of basic wages as per the Employee Provident Fund and Miscellaneous Provisions Act, 1952?

Dearness allowance Overtime Cash value for consideration All the above

216. The contribution of employer to insurance fund is:

1% 10% 12% None of the above

217. Contribution of 10% to PF is applicable to:

Any establishment in which less than 20 employees are employed Any establishment declared as sick industrial company Jute company All of the above

218. The minimum administrative charge payable by the employer to the fund is:

Rs.75 Rs.500 Rs.1,000 None of the above

219. The maximum penalty recoverable from the employer who makes the default in payment of any contribution to the fund is:

5% 10% 15% 25%

220. Withdrawal from PF may not be allowed for:

Marriage of the employer Post matriculation education of children For the purchase of a dwelling place For illness in certain cases

221. The Employees’ Pension Scheme provides for:

Superannuation pension Orphanage pension Both (a) and (b) None of (a) or (b)

222. Contribution of the employer to employees’ pension scheme is:

8.33% 10% 12% None of the above

223. The following cannot be nominated for the purposes of EPF Act:

Wife Sons of a deceased son who have attained majority Father-in-law Unmarried daughter

224. While filing appeal to EPF Appellate Tribunal the employer has to deposit_________ of the amount due from him.

25% 50% 75% None of the above

225. The contribution shall be paid in a bank within_______ days of the last day of the calendar month in which the contribution falls due for any wage period.

7 14 21 15

226. An appeal shall lie to High Court from the orders of ESI within ______ days from the date of order of the ESI Court.

30 60 90 None of the above

227. A member of the Corporation shall cease to be a member if he fails to attend ______ consecutive meetings.

3 5 7 None of the above

228. ESI Fund consists of:

Contribution Grants from governments Donations All the above

229. The Corporation may with the approval of establish and maintain in a State, hospitals, dispensaries etc.,

Central Government State Government Local Authority None of the above

230. Who among the following will not be considered as an employee?

Canteen workers Casual workers Partners Part-time employee

231. Who, among the following, is not the Principal Employer?

Occupier of the factory Owner of the factory Legal representative of the owner Legal representative of the contractor

232. Seasonal factory is the one which is engaged for a period not exceeding in a year:

7 months 6 months 3 months None of the above

233. Which, among the following, will not be included in the definition of ‘wages’?

Payment made on authorized leave Travelling allowance Payment made on lockout Payment made for layoff

234. ESI Corporation is a:

Partnership firm Limited Liability Partnership Body Corporate Hindu Undivided Family

235. The minimum rate of wages on time work basis may be fixed in accordance with:

By the hour By the day By the month All of the above

236. Section_____ deals with Eligibility for Bonus.

6 8 18 20

237. Every Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed to be a public servant within the meaning of section of the Indian Penal Code.

15 18 21 26

238. Section 56 talks about the______________.

Composition of offences Offences by companies Penalties for offences Power of officers

239. Which one of the following is not correct in regard to share certificate?

The Company Secretary shall issue the share certificate. The share certificate shall be issued in pursuance of a resolution of the Board; Every share certificate shall be distinguished to its distinctive number. The shares may be in the dematerialized form.

240. If a company does not have a common seal, the share certificate shall be signed by:

Two directors One director and Company Secretary; Either (a) or (b); None of the above.

241. In case of unlisted company the duplicate share certificate shall be issued within a period of:

45 days 3 months 6 months None of the above.

242. The Bonus shares may be issued out of the:

Free reserves Securities premium account Capital redemption reserve account Any of the above.

243. For which purposes securities premium account can be utilized?

In writing off the preliminary expenses; Buy back of shares Issue of bonus shares Any of the above.

244. The quorum for a public company having the number of members more than 5000 is:

2 5 15 30

245. An instrument of the proxy shall be deposited with the registered office of the company__________ before the conduct of the meeting.

7 hours 21 hours 48 hours 60 hours.

246. In case of e-voting notice shall be sent as attachment in:

PDF Word file Excel Access

247. In the case of an adjourned meeting the company shall give not less than__________ notice to the members:

1 day 3 days 7 days None of the above.

248. Which one of the following is not correct?

The articles of the company shall provide for the appointment of Chairman in a meeting; The members personally present at the meeting shall elect one of themselves to be Chairman on a show of hands, if the article does not provide for the same; Managing Director is the Chairman of the meeting. The member selected as Chairman as a result of poll, continue the Chairman, who is elected by show of hands.

249. Which of the following is the method of voting?

Voting by show of hands Voting through electronic means Voting by poll All of the above "

250. A poll demanded on any question shall be taken within_____ from the time when the demand was made.

Immediately 12 hours 24 hours 48 hours

251. Which one cannot be transacted through postal ballot?

Appointment of auditor Election of a Director Buy back of shares by a company Change in place of registered office outside the local limits of any city, town or village.

252. The assent or dissent received after________ days in postal ballot, from the date of issue of notice, shall be treated as if no reply has been received from the member.

3 7 30 45

253. If any inspection is refused or if any copy required is not furnished within the specified time, the company shall be liable to a penalty of __________.

Rs.10000 Rs.25000 Rs.50000 Rs.100000

254. The minimum number of directors for a public company is:

1 2 3 7

255. What is the paid up share capital fixed for the appointment of a woman director?

Rs.100 crores Rs.300 crores Rs.500 crores None of the above.

256. The appointment of an independent director shall be approved by:

General meeting Board meeting Registrar of Companies Central Government

257. The tenure of director appointed by small shareholders shall be:

Up to the date of next AGM 1 year 3 years 5 years

258. No independent director shall hold office for more than consecutive terms:

2 3 4 5

259. Which public company is required to appoint independent director?

The public company having turnover of ₹100 crores or more The public company having paid up share capital of ₹10 crores or more The public companies which have, in aggregate, outstanding loans, debentures and deposits exceeding ₹50 crores Any of the above

260. Which one of the following is not the criterion for the appointment of independent director?

He shall not be a promoter of the company He shall relate to the promoters of the company He shall not have any pecuniary relationship with the company or their promoters or directors during two immediately preceding financial years His relatives have not held any pecuniary relationship with the company amounting to 2% or more of its gross turnover

261. A director may be elected by small shareholders upon a notice by:

Not less than 1000 small shareholders One tenth of the total number of shareholders Not less than 1000 small shareholders or one tenth of such shareholders, whichever is lower None of the above

262. At every AGM, not less than of the total number of directors shall retire by rotation:

One third Two thirds Three fourths Half

263. The minimum age prescribed for the appointment of Managing Director is:

18 years 21 years 30 years 70 years

264. The relationship between laws and ethics is:

Complex Simple Inexplicable None of the above

265. Many laws are ______ to ethics of time:

Complimentary Supplementary Representative None of the above

266. Law gives us a certain right because all humans are born:

Equal Unequal Subordinate None of the above

267. The role of accounting in problem solving is to provide information useful in_______ alternatives:

Finding Evaluating Dismissing None of the above

268. Ethics are the set of moral principles that guide a person’s:

Behaviour Philosophy Religion Profession

269. The following is the disadvantage of business ethics:

Through increasing morale and trust business can increase their market share Publicity due to well and ethical performance Acceptance of products of the company by the public Diversity in achievements

270. A sale is complete when the following is transferred from one:

Money Ownership Usage None of the above

271. The Consideration in contract of sale must be:

Immovable Movable Price None of the above

272. The subject matter of the contract must be:

Sale Product Service None of the above

273. On which date was the Sale of Goods enforced?

1948 1930 1932 1951

274. As per Sale of Goods Act, this is not included:

Growing crop Money Table Goodwill

275. The term property as used in the sale of goods act, 1930 means:

Possession Ownership Ownership and possession both The subject matter of contract of sale

276. The doctrine of caveat emptor applies-------:

In case of implied conditions and warranties When the buyer does not intimate the purpose to the seller and depends upon his own skill and judgement When goods are sold by sample When goods are sold by description

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

Actual Symbolic Constructive Physical

278. Where the price of the goods under a contract of sale is to be fixed by the valuation of a third party who fails to fix the valuation, but goods are supplied to the buyer, under section 10 of the Sale of Goods Act, 1930, the buyer is:

Liable to pay the reasonable price of the goods Liable to pay the minimum price of the goods Not liable to pay any price until fixed by the valuer Liable to pay the maximum retail price

279. In case of breach of warranty the buyer can:

Repudiate the contract Claim damages only Return the goods Refuse to pay the price

280. The main objective of a contract of sale is:

Transfer of possession of goods Transfer of property in goods Delivery of goods Payment of price

281. Risks follow ownership:

Only when goods have been delivered Only when price has been paid Whether delivery has been made or not Even when price has not been paid

282. In an agreement to sell, the seller can sue for price if:

The goods have been delivered to the buyer The goods have not been delivered to the buyer There is a specific agreement None of the above

283. Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when:

The goods are delivered to the buyer The price is paid by the buyer The contract is made The buyer accepts the goods

284. If the contract is silent as to the party who is to appropriate the goods:

The buyer is to appropriate goods The seller is to appropriate The party who under the contract is first to act is to appropriate Any party may appropriate

285. Where there is no specific agreement as to place, the goods sold are to be delivered at the place:

At which they are at the time of sale Of the buyer Desired by the buyer To be determined by the seller

286. A seller delivers goods in excess of the quantity ordered for. The buyer may:

Accept the whole Reject the whole Accept the goods ordered for and return the excess None of these

287. Where the neglect or refusal of the buyer to take delivery of goods amounts to a repudiation of the contract, the seller may sue for:

The price or damages Price only Damages only Both for price and damages

288. The lien of an unpaid seller depends on:

Possession Title Ownership Whether the buyer has paid the price or not

289. An unpaid seller has not given notice of resale to the buyer; there is a profit. The unpaid seller:

Is bound to hand it over to the buyer Is not bound to hand it over to the buyer The buyer can recover it from the unpaid seller The buyer must compensate the unpaid seller

290. An unpaid seller can exercise the right of stoppage in transit when the carrier holds the goods:

As seller's agent As buyer's agent As agent of both of them In his own name

291. An auction sale is complete on the:

Fall of hammer Delivery of goods Payment of price Both (B) and (C)

292. Auction sale is also known as:

Public sale Private sale Cash sale None of the above

293. Consideration and object of an agreement is unlawful if it:

Is fraudulent Is possible Is impossible All of the above

294. Where the seller appoints his person to bid at the auction sale without informing the bidder, it is called as:

Prepared bidding Pretend bidding Power bidding Both (A) & (C)

295. An unlawful act by which an intending purchaser is prevented from bidding or raising the price at an auction sale is known as:

Decoy ducking Puffing Damping None of these

296. In a sale, there is an implied condition on the part of the seller that he has a right to sell the goods:

Is in possession of the goods Will have the right to sell Will acquire the goods None of the above

297. In a contract of sale, unless goods are ascertained, there is:

A sale An agreement to sell A void agreement An unenforceable agreement

298. There is a constructive delivery of goods:

When the seller hands over to the buyer the key of the warehouse where the goods are lying Where a third person in possession of the goods acknowledges to the buyer that he holds them on his behalf When the seller physically delivers the goods to the buyer When the seller asks the buyers to take delivery of the goods

299. Unless otherwise agreed, where goods are delivered to the buyer and he rejects them:

He is not bound to return them to the seller It is sufficient if he intimates to the seller that he has rejected the goods He is bound to deliver them to the seller He may keep them with him

300. If a seller makes use of pretended bidding at an auction to raise the price, the sale is:

Voidable at the option of the buyer Void Valid Illegal

Question Bank Law