BUSINESS LAW - II (MCQS)

T.Y B.COM

SEMESTER - 6

BUSINESS LAW-Il 

MCQS - 2020

1. Which of the following statement is incorrect with reference to partnership?

A) The partnership comes into existence with an object to carry on business.

B) A person who receives the profits is always a partner.

C) To be just and faithful with each other is one of the duty of partner.

D) A person who receives the profits is not necessarily a partner.

2. ........... can enter into a contract of partnership. 

A) Only artificial person

B) Only natural person

C) Minor

D) Both natural and artificial person

3. The Doctrine of Indoor Management seeks to protect-

A) Outsiders against the company

B) To the auditors of the company

C) The company against outsiders

D) To the directors of the company

4. The first Annual General Meeting of a company shall be held within .......... from the date of the closing of its financial year. 

A) Three months

B) Six months

C) Two months 

D) Nine months

5. Any difference arising as to ordinary matters connected as to the business of a firm may be decided by-

A) Active partner

B) Partner in profit only

C) Majority of partners

D) Dormant partner 

6.  Every person who authorized the issue of prospectus containing misstatement shall be punishable with imprisonment for a term-

A) Which shall not be less than six months but may extend to ten years. 

B) Which shall not be less than nine months but may extend to nine years. 

C) Which shall not be less than six months but may extend to five years. 

D) Which shall not be less than three months but may extend to ten years. 

7. In which of the following cases, the firm is dissolved by the order of the court?

i. Insanity

ii. Misconduct

iii. Business working at a loss 

iv. Persistent breach of an agreement

A) i, ii, iii, iv 

B) i, ii & iii

C) i & ii

D) i, ii & iv

8. persons who have entered into partnership with one another are called individually as ......... 

A) Partners

B) Firm

C) Both A &B

D) Members

9. In which of the following case corporate veil can be lifted by the court? 

A) Prevention of fraud

B) Protection of revenue 

C) Determination of character of company 

D) All of these

10. .......... firm cannot file a suit against third party. 

A) Trading

B) Registered

C) Banking

D) Unregistered 

11. A company which has been formed for a future project, or to hold an asset or any intellectual property rights and has no significant accounting transaction or has not filed financial statement or annual returns for two financial years consecutively is known as-

A) Private company

B) Small company 

C) Dormant company

D) One person company 

12. Who of the following are liable for the misstatement in prospectus?

A) Promotors of the company.

B) Persons who are directors of the company at the time of the issue of the prospectus.

C) Persons who has authorized the issue of the prospectus. 

D) All of the above

13. In case of ........... company, the Memorandum must state the name of the person who, in the event of the death of the subscriber, shall become the member of the company. 

A) Private

B) Dormant

C) One person 

D) Small

14. In case of .........  no duration is determined by the partners in partnership deed. 

A) Joint Venture

B) Particular partnership

C) Partnership-at-will

D) Co-ownership

15. Where a partner advanced beyond the amount of capital for the purpose of the firm, he is entitled to get interest at the rate of........... 

A) 9% p.a.

B) 4% p.a

C) 5% p.a.

D) 6% p. a

16. A prospectus which does not include complete particulars of the quantum or price of the securities included therein is known as

A) Prospectus

B) Shelf prospectus

C) Red-herring prospectus 

D) None of these

17. Which of the following document regulates the manner in which the company' s affairs will be managed? 

A) Article of Association

B) Board resolutions

C) Memorandum of Association

D) Prospectus

18. Which one of the following is not duty of partner? 

A) Duty to be liable severable only

B) Duty to indemnify for loss caused by fraud

C) Duty to be just and faithful inter se

D) Duty to render true accounts

19. A private company is required to limit though its Articles, the number of members to ............. 

A) One hundred

B) Two hundred 

C) One hundred fifty

D) Fifty

20. Which of the following statement is true-

A) A company cannot enter into a contract of partnership at all.

B) A Company can enter into contract of partnership if authorized by its memorandum of association. 

C) A company can enter into contract of partnership with the prior approval of the Central Government. 

D) A company can enter into contract of partnership with the prior approval of the company law board. 

21. The relationship of partnership arises from .......... 

A) Contract 

B) Relationship 

C) Arrangement

D) Status

22. Partners are liable to contribute ........  to the losses sustained by the firm, unless otherwise agreed. 

 

A) 1/4 of their profit sharing

B) equally

C) 1/2 of their profit sharing

D) 1/10 of their profit sharing

23. Any act beyond the powers expressly or impliedly conferred upon company by its Memorandum of Association is known as-

A) Doctrine of intra vires.

B) Doctrine of indemnity. 

C) Doctrine of subrogation. 

D) Doctrine of ultra vires. 

24. The importance of the separate entity of a company was firmly established in which of the following case-

A) Salomon v/s Salomon & Company Ltd

B) Cox v/s Hickman

C) Jugilalal v/s Commissioner of Income Tax

D) Jones v/s Lipman

25. The name of the company may be changed at any time by passing special resolution at ........ meeting and with the written approval of the Central Government. 

A) Extra-ordinary General

B) Class

C) Board

D) Statutory

26. The real test to determine the existence of partnership is .......... 

A) Business and sharing of profits 

B) Mutual agency 

C) Sharing of profit and loss

D) Agreement 

27. In case of company limited by shares, a member can be called upon at any time to pay to the company-

A) The guaranteed amount

B) The amount equivalent to outstanding Liability of company 

C) The amount unpaid on the shares

D) None of these

28. According to section 173(1) every company shall hold the first meeting of the board of directors within ...........  days of the date of its incorporation. 

A) 90

B) 30

C) 45

D) 95

29. If a person represents to the outside word by words spoken or written or by his conduct that he is partner in particular partnership firm, though actually not a partner of the firm, is known as -

A) Partner by estoppel

B) Sub-partner

C) Active partner

D) Sleeping partner

30. A firm can get registered with the registrar of a firm within/ at-

A) 6 months from the date of formation of a firm. 

B) Any time during the continuation of the firm.

C) 12 months from the date of formation of a firm. 

D) 9 months from the date of formation of a firm.

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