S.Y.B.

Com
Business Law -Semester IV
Objective questions
Module I

1) Memorandum of Association embodies

a) list of members of the company
b) list of managing director and other directors
c) fundamental rules regarding constitution
d) the company and permitted scope of activities of the company

2) If the company is with limited liability, the last word of its name should be
a) limited
b) partly limited
c) unlimited
d) partly unlimited

3) If a company had been in existence before 1965, its object clause must embody
a) main objects and other objects.
b) only main objects.
c) subsidiary objects.
d) Only other objects

4) If a company is registered with limited liability, the liability of its members shall be
a) unlimited
b) limited by unpaid amount on their shares.
c) limited by the amount as agreed by all its members.
d) limited by the amount as determined by the company.

5) When a company exercises beyond power to its called ________ the company
a) no vires
b) intra vires
c) ultra vires
d) pro vires
6) An ultra vires contract of a company is
a) valid at law.
b) voidable.
c) void ab initio.
d) invalid

7) The registered address of a company may be altered from one state to another state by
a) a resolution at its annual general meeting.
b) a resolution at its board of directors' meeting,
c) alternation of the Memorandum of Association.
d) alternation of the Articles of Association.

8) The doctrine of indoor management seeks to protect the interests

a) the company against outsiders.
a) outsiders against the company.
b) the directors against the company.
c) creditors of company

9) The principle of constructive notice seeks to protect

the company against outsiders.
outsiders against the company.
members against directors.
creditors against the company.

10) A means a company, formed and registered under

the Companies Act, 2013.
the Contract Act, 1872
the Indian Partnership Act, 1932.
Companies, Act 1932
11) An existing company,formed and registered under____________ is also a company.
a) any of the former Companies Acts.
b) the Companies Act, 2013.
c) the Indian Partnership Act, 1932.
d) LLP Act 2008

12) A company is a distinct ___________ person.

a) artificial legal
b) natural, born.
c) natural legal
d) not person at all.

13) A company has an independent ___________ personality

a) business.
b) social
c) legal.
d) mixed

14) A company is
an artificial legal person.
a natural citizen of a State.
an alien body.
artificial citizen

15) A company
a) has temporary life
b) has a fixed life.
c) may die.
d) never dies.
16) A company’s property is
a. its own
b. Members
c. directors'
d. creditors

17) Shares in a public company are

a) Easily transferable
b) Difficult to be transferred
c) Non transferable
d) Transferable with permission of directors

18i) A company being a body corporate

a) is above suit.
b) cannot sue and cannot be sued.
c) can sue and be sued.
d) can be sued with permission of central government

19) Articles embodies

a) rules regarding constitution and scope of permitted activities.
b) rules, regulations and bye-laws for internal management.
c) name clause

d) object clause

20) Articles are subordinate to

a) Memorandum
b) members
c) directors
d) creditors
21) Articles can
a) violate Memorandum and the Act.
b) not violate Memorandum and the Companies Act,
c) violate directors' resolutions.
d) violate the Companies Act

22) Articles can be altered simply by

a) an ordinary resolution,
b) directors' resolution.
c) a special resolution
d) permission of government

23) If a company does something in contravention of the Articles, it is

a) void ab initio
b) null and void
c) only irregular, which can be confirmed by shareholders and ratified.
d) none of the above

24) A public company should issue a prospectus within:

a) Within 30 days after registration with the Registrar.
b) Within 45 days after registration with the Registrar.
c) Within 60 days after registration with the Registrar.
sd) Within 90 days after registration with the Registrar

25) A director on coming to know of the mis-statements in the Prospectus withdraws his
consent before the prospectus was issued. He:
a) Will still be held liable.
b) Will not be held liable.
c) Will be partially liable.
d) cannot claim exemption from liability.
26) Who is not liable for mis-statement in the prospectus:
a) Directors.
b) Any person whose name appears in the prospectus.
c) Expert
d) Employee

Module II

1. Additional Director is appointed:

(a) by Shareholders
(b) By the Board
(c) By the Central Government.
(d) by the third parties

2. Where a Director absents himself from three consecutive meetings of the Board without
valid reason, he:
(a) Is removed
(b) Vacates the office
(c) Is disqualified
(d) Continues in the office

3. The minimum number of directors required for a public company:

(a)2
(b) 3
(c) 5
(d) 7

5. A person cannot hold office of a director simultaneously in more than:

(a)10 companies
(b) 12 companies
(c) 15 companies
(d) 20 companies

6. Additional directors appointed by the BOD can hold office:

 a. Till the next AGM
b. For 1 year For 2 years
c. As long as he wants
d. At the discretion of the BOD.

7. Minimum number of directors for OPC:

(a) 1
(b )2
(c) 3
(d) 5

8. Resident director is required to be in India for:

(a) Permanently
(b) At least for 182 days in the previous calendar year
(c) At least for 182 days in his lifetime
(d) At least for 240 days in the previous calendar year.

9. Number of Independent Director for a listed company:

(a) 1
(b) 2
(c) At least 1/3rd the total number of directors
(d)At least 2/3rd the total number of directors

10. Which company to have a director for small shareholders?

(a)Private
(b) Public
(c) Listed company
(d) All companies

11. DIN is granted by:

(a) Central Government.
(b) State Government
(c) Company of which he is a director
 (d) Tribunal

12. Extraordinary meeting is held to transact:

a. Any matter
b. Urgent matter that cannot wait till the next AGM.
c. Matter decided by the Managing Director.
d. Routine matters of business

13. Class meeting is a meeting of :

(a) Only directors.
(b) Particular class of members.
(c) Of all shareholders.
(d) Of all debenture holders.

14. Quorum for a public company where members upto 1000:

5
10
15
30

15. Quorum for a public company where members are above 5000 is:
(a) 5
(b) 10
(c) 15
(d) 30

16. Quorum for a private company AGM is:

(a) 2
(b) 5
(c) 10
(d) 15

17. Documentary rights are conferred upon the members by:

(a) Constitution of India
 (b) Companies act
(c) MOA & AOA
(d) Central Government

18. The gap between 2 AGM cannot exceed:

(a) 6 months
(b) 12 months
(c) 15 months
(d) 24 months.

19. A person who acquires shares on the death of a shareholder is called as

(a)transfer
(b) transmission
(c) allotment
(d) estoppel

20. Index of register has to be maintained when the number of members is:
(a) 25
(b) 50
(c) 75
(d) 100

Module III

1. The maximum number of partners allowed in a firm carrying on any other business than
banking business is
(a) 10
(b) 20
(c) 30
(d) 50

2. The maximum number of partners carrying a banking business cannot exceed

10
20
 15
05

3 Where there is no provision in the partnership deed for the duration of partnership than
such a partnership is called as
(a) Particular partnership
(b) Partnership at will
(c) Partnership for a fixed period
(d) Specific Partnership

4. Firm has
(a) no legal existence
(b) legal existence
(c) illegal existence.
(d) partial legal existence

5. What is the true test of the existence of partnership ?

(a) Profit sharing
(b) Co-ownership
(c) Mutual agency
(d) Joint liability

6, Liability of the partners in partnership is

(a) Joint
(b) Joint and Several
(c) Joint or Several
(d) several

7. Registration of partnership in the state of Maharashtra is

(a) Compulsory
(b) Voluntary
(c) Optional
(d) not necessary
8. If the firm is not registered
(a) the third party cannot sue the firm
(b) the third party cannot sue the partner of a firm
(c) partner cannot sue the third party
(d) no suit at all can be filed.

9. Property of the firm does not include

(a) immovable property of the firm
(b) goodwill of a firm
(c) movable property of the firm
(d) property of creditors of the firm

10. Karta of a Joint Hindu Family firm has

(a) Unlimited liability
(b) Limited liability
(c) No liability.
(d) Partial Liability

11. A nominal partner is liable

(a) for the nominal sum of money
(b) not liable for firms debt
(c) partially liable for the debts of the firm
(d) fully liable

12. If a minor chooses to become a partner on attaining the age of majority, he will be liable
for the debts of the firm
a. from the date of his attaining majority
b. from the date of his admission to the benefits of the partnership
c. on his election to become a partner in the firm
d. Even iff he exits the firm

13. A firm receives money from the third party and any individual partner misapplies that
money
(a) firm is liable to repay that money
 (b) individual partner who misapplies is liable to repay
(c) all the partners should contribute for the loss
(d) no partner is laible

14. No Public Notice is to be given in case of

(a) minor attaining majority
(b) retirement of a active partner
(c) death of a partner
(d) retirement of a nominal partner

15. Goodwill of a business is

(a) a partnership property
(b) not a partnership property
(c) an individual partners property
(d) liability of firm

16. New partner can be admitted in the firm

(a) with the consent of existing partners
(b) without the consent of existing partners
(c) with the consent of senior partners
(d) by the will of single partner

17. Limited Liability Partnership Act came into force in the year
(a) 2002
(b) 2004
(c) 2005
(d) 2008

18. LLP is a
(a) body corporate
(b) Not a body Corporate
(c) firm
(d) company

19. Liability of partners in LLP is

(a) Joint
 (b) Joint and Several
(c) Joint or Several
(d) Limited to their agreed contribution in LLP

20. Minimum number of members required to start LLP

(a) Two
(b) Four
(c) Six
(d) Eight

21. Every LLP has to have at least

(a) Two designated partners
(b) one designated partner
(c) Four designated partner
(d) Five designated partner

22. Every partner of a Limited Liability partnership is for the purposes of the business
(a) an agent of LLP
(b) an agent of other partners
(c) an agent of a third party.
(d) No agent at all.

23. The liabilities of the LLP shall be paid out of

(a) Property of an individual partner
(b) Jointly by all the partners
(c) Property of the LLP
(d) Property of the LLP and property of all partners

Module IV

(1) A consumer is a person, who

(a) hires or avails of any services for a consideration.
(c) avails of any services free of charge.
c) gets free services from a private organization
(d) does not avail services at all
(2) A retired Government servant, who gets free medical services under the CGH Scheme of
the Government of India, is
(a) not a consumer;
(b) a consumer;
(c) an ordinary person.
(d) special consumer

(3) Consumer protection does not include

(a) protection against fair price.
(b) protection against pure goods.
(c) protection against adulterated goods.
(d) buying goods for resale

4) The consumer is _____________ in India.

(a) the King.
(b) the slave.
(c) just a buyer
(d) just hirer

5) A complaint means
(a)an allegation in oral words.
(b) a recommendation in writing.
(c) a request in writing.
(d) an allegation in writing.

6) The State Government shall establish a Consumer Disputes Redressal each district which is
called as
(a) District Forum
(b) State Commission
(c) Municipal Forum
(d) national commission
 7) Every member of a District Forum shall hold office to the age _______ or up to the term of
five years whichever is earlier.
(a) Sixty two years.
(b) Sixty four years.
(c) Sixty five years.
(d) Seventy years

8) If a member of a District Forum resigns his office, in writing under his hand, his office shall
(a) fall vacant.
(b) not fall vacant till his resignation is accepted by the State Government.
(c) continued to be occupied by him till completion of the term.
(d) not become vacant at all.

9) The monetary jurisdiction of a District Forum is

(a) not more than rupees twenty-five lakhs.
(b) not more than rupees thirty lakhs.
(c) not more than rupees twenty lakhs.
(d)not more than rupees ten lakhs.

10) The original jurisdiction of the State Commission is

a. between twenty lakhs and one crore.
b. between twenty-five lakhs and one crore.
c. between thirty lakhs and one crore.
d. Above 1 crores

11) The original monetary jurisdiction of the National Commission

(a)between one crore and ten crores
(b) More than one crore
. (c) between one crore and eight crores.
(d) below 1 crore

12) The territorial jurisdiction of a District Forum

 (a) runs through the whole state.
(b) through the whole country.
(c) None of the above
(d) both of the above

13) Any person, aggrieved of an order, made by a District forum may file appeal to
(a) National Commission.
(b) State Commission.
(c) high court
(d) supreme court

14) Any person, aggrieved by an order, passed by a State Commission, file appeal against such
an order to
(a) the High Court.
(b) the President of India.
(c) the National Commission,
(d) none of the above

15) Every member of the National Commission shall hold office for a term of five years or
upto the age of whichever is earlier.
(a) seventy five years.
(b) seventy years,
(c) sixty seven year.
(d) seventy two years

16) The territorial jurisdiction of the National Commission extends

(a) the whole of India.
(b) to whole of India except the State of Jammu and Kashmir.
(c) certain parts of India.
(d) outside India

(17) Competition Act, 2002, replaced:

Indian Contract Act, 1872

The Companies Act, 1956

Partnership Act, 1932

Monopolies Trade Practices Act, 1969

(18) Which is an advantage of competition:

(a) Offers same of products

(b) Improves in quality of services

(c) There is increase of prices

(d) Less foreign investment

(19) Which does not amount to abuse of dominant position:

(a) imposes unfair or discriminatory conditions in purchase

(b) affects the price in purchase or sale of goods or services.

(c) grants free access to market.

(d) restricts production of goods or affects services or markets.

(20) Any combination that exceeds the threshold limits of either the assets or turnover specified

by the Act is:

(a) permitted by law

(b) is void
(c) None of the above
(d) both of the above
Module V

1 - IPR protects the use of information and ideas that are of

a. Ethical value
b. Moral value
c. Social value
d. Commercial value

2 - The term ‘IPR’ covers

a. Copyrights
b. patent
c. Trade mark
d. All of the above

3 - The following can not be exploited by assigning or by licensing the rights to others.
a. Patents
b. copyright
c. Trademark
d. Design

4 - The following can not be patented

Machine
Process
Composition of matter
Agricultural product

5 - Infringement of trademark attracts

a. Civil remedy
b. Criminal remedy
c. Para-legal remedy
d. No remedy

6 - Following is not a characteristic of Trade mark.

 a. is represented graphically
b. is capable of distinguishing the goods or services of one person from those of others
c. may include shapes of goods or combination of colours
d. It is similar to some other Trade Mark in the market.

7 - Symbol of Maharaja of Air India is

Copyright
Patent
Trademark
Design mark

8 - In India, the literary work is protected until

a. Lifetime of author
b. 25 years after the death of author
c. 40 years after the death of author
d. 60 years after the death of author

9 - IPR stands for

a. Industrial property right
b. Industrial proprietary right
c. Intellectual property right
d. Intellectual proprietary right

10 - Tenure of patent is
a. 10 years
b. 20 years
c. 30 years
d. 40 years

11 - Following is not a type of trademark

a. Industry mark
b. Service mark
c. Certification mark
d. Collective mark
12 - Patent is a form of
a. Tangible Property
b. Intellectual Property
c. Industrial property
d. Both (b) and (c)

13 - Patent protects
a. Discovery
b. Invention
c. New invention
d. Both (a) and (b)

14 - Invention means
a. New product having inventive step and capable industrial application
b. New process
c. New product or process having inventive step and capable industrial application
D. None of the above.

15 - Patent right is
a. Exclusive right
b. Natural right
c. Property right
d. Both (a) and (c)

16 - Patent right is
a. Limited period right
b. Territorial right
c. Absolute right
d. Both (a) and (b)

17 - Patentability criteria includes

a. Novelty
 b. Inventive step
c. Capable of Industrial application
d. All the above

18 - Following is not a characteristic of IPR

a. Permanent
b. Intangible
c. Commercial
d. Different in every country

19. Patent cannot be granted for

a. Invention
b. Discovery
a. Industrial applicability
b. None of the above

20. Copyright can be claimed for

Literary work
Artistic work
Copy work
Dramatic work