1. The term 'sub-agent' in the business of agency is defined as a person employed by,
and acting under the control of the
Correct : B. Original agent
2. The first endorsement of an instrument can be made by the
Correct : B. Payee
3. Which of the following is not the mode of dissolution of a firm under voluntary
dissolution?
Correct : C. Dissolution on becoming a partner of unsound mind
4. White wash or color wash should be carried out at least once in every period of
Correct : A. 14 months
5. The term 'family' as defined in ESI Act, 1948 does not include
Correct : D. an independent married sister
6. Which one of the following amounts to safety measure?
Correct : C. Fencing of machinery
7. If a company does not have a common seal, the share certificate shall be signed by
Correct : A. Two Directors
8. In case of e-voting, notice shall be sent as attachment in
Correct : A. PDF file
9. A Director may be elected by small shareholders upon a notice by
Correct : C. not less than 1000 small shareholders or one tenth of such shareholders, whichever is lower.
10. Meta ethics deal with the nature of ___________ .
Correct : B. moral judgement
11. The breach of contract may be-
Correct : D. Either of (a) and (b)
12. Which one of the following is not the feature of “agreement to sale”?
Correct : B. Sales takes place for existing and specific goods
13. Which one of the following is not the element of draft?
Correct : C. It is open to the person to stop payment
14. Who may negotiate?
Correct : D. Any of (a) to (c)
15. The Information Memorandum shall be deemed to be a ______________.
Correct : A. Prospectus
16. The Regional Director shall communicate the confirmation of shifting of registered
office within __________ days of receipt of the application.
Correct : B. 30
17. The private placement shall be made, not more than ___________ persons in
aggregate in a financial year.
Correct : C. 200
18. If the shareholders not less than _____ of the issued shares of class did not consent to the variation or vote in favor of the special resolution for the variation, such shareholders may apply to the Tribunal to have the variation cancelled.
Correct : A. 10%
19. The company shall not issue sweat equity shares for more than _______________ of the
existing paid up share capital in a year.
Correct : B. 15%
20. Which one of the following is not the discharge by operation of law?
Correct : C. By breach of contract
21. Which one of the following is not the feature of the Contract of Guarantee?
Correct : C. There is an existing debt for which the surety gives guarantee to the creditor on behalf of the principal debtor.
22. Section 2(7) of the Sale of Goods Act, 1930 the term 'Goods' does not include
__________.
Correct : D. Neither (A) nor (B) nor (C)
23. No female child shall be allowed to work in any factory except between
________________.
Correct : A. 8 AM and 7 PM
24. The Bonus shares may be issued out of the _____________________
Correct : D. Any of the above
25. An instrument of the proxy shall be deposited with the registered office of the
company before ____________ hours of the conduct of the meeting.
Correct : C. 48 hours
26. Theminimum number of designated partners in an LLP shall ____________________
Correct : B. 2
27. At every AGM, not less than ________ of the total number of directors shall retire by
rotation.
Correct : A. One third
28. The minimum number of directors for a public company is _______________
Correct : C. 3
29. This is not one of the 7 principles of public life.
Correct : C. Content
30. Which of the following is an invitation for offer?
Correct : D. A catalogue of goods for sale
31. Where seller delivers to the buyer a quantity of goods less than the contracted to sell,
the buyer
Correct : A. may reject them
32. A person who has ultimate control over the affairs of the factory under Factories Act,
1948 is called as:
Correct : A. Occupier
33. A bearer instrument is negotiated by
Correct : A. delivery only
34. X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain
shares in his name out of partnership money. These shares will constitute
Correct : B. Partnership Property
35. Business ethics calls for avoidance of
Correct : C. Monopoly
36. Business ethics has a ____ application.
Correct : A. Universal
37. A contract is a combination of
Correct : C. agreement and enforceability
38. A proper foundation of ethics requires a standard of _______ to which all goals and
actions can be compared to.
Correct : A. value
39. The provisions regarding maximum number of members in a partnership are given in
Correct : B. The Companies Act
40. X and Y agree to divide the profits of a business in equal shares but the loss if any is to
be borne by X only. The partnership agreement is
Correct : C. lawful
41. First aid boxes or cupboard equipped with prescribed contents and not less than one in number must be provided and maintained in every factory so as to be accessible during all working hours for every
Correct : B. 150 workers for any time
42. XYZ Ltd., to which the Payment of Wages Act, 1936 is applicable, fixes the wages period of 36 days. You as a Cost and Management Accountant of the Company, how would youadvice the company.
Correct : B. As per Section 4(2) of the Act, no wage period can exceed one month. So the company would be advised accordingly.
43. 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
Correct : B. Next preceding business day
44. In case of an employee who has not completed 15 years of age at the beginning of
the Accounting year, the minimum bonus will be
Correct : B. ` 60 or 8.33% of salary or wages whichever is higher.
45. Every LLP firm shall have at least _____________ designated partners who are
individuals.
Correct : A. two
46. K owns a residential flat in Chennai. He is entitled to quiet possession and enjoyment
of his property. This is called –
Correct : B. Rights in Rem
47. 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:
Correct : B. Void
48. In a Contract of Guarantee there is/are:
Correct : C. Three contracts
49. Right of Stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:
Correct : B. becomes insolvent
50. "Nemo dat quad non habet", means:
Correct : B. none can give who does not himself possess
51. According to Sec 2(n) “Occupier” of a factory means ___________________
Correct : C. The person who has ultimate control over the affairs of the factory
52. 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
Correct : B. cannot deduct fine from workers who are under the age of 15
53. Permanent disablement benefit is paid at the rate of ______________ of wages.
Correct : D. 90%
54. Workers will be entitled to overtime wages if they have worked for more than
____________.
Correct : D. Forty-eight hours in any week
55. Appropriate Government reviews the rates of minimum wages within:
Correct : C. 5 years
56. Anchal purchased a motor car from Kamal who had no title to it. Anchal used the motor car for several months. True owner spotted the motor car and demanded it from Anchal. In such case
Correct : A. Anchal is bound to hand-over the motor car to true owner.
57. Which of the following agreement is wagering agreement under the Indian Contract
Act, 1872?
Correct : C. A promise to pay B ` 1,000 if it rains on Monday.
58. Under Sale of Goods Act, which of the delivery of goods is called as delivery by
attornment?
Correct : C. Constructive
59. 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
Correct : A. liable to pay the reasonable price of the goods.
60. 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
Correct : B. Shift
61. Under Payment of Wages Act, 1936, deduction on account of payment to
cooperative societies shall not be more than
Correct : B. 75% of wages
62. Under Employee‘s State Insurance Act, in order to qualify for sickness benefit, the
insured worker is required to contribute for
Correct : D. 78 days in a contribution period of 6 months.
63. Ankit purchased goods worth ` 20,000 from Anuj. In lieu of cash payment, Ankit accepted a bill of exchange of ` 20,000 to be payable after three months. This is an example of
Correct : C. Genuine Bill
64. Under the Negotiable Instruments Act, 1881, whether acceptance of a bill of exchange in the following situation shall be treated as qualified acceptance where the acceptor
Correct : A. undertakes to pay only `10,000 for a bill drawn for `15,000.
65. When a partnership firm is continued even after the expiry of fixed term is called
Correct : D. Partnership at will
66. 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
Correct : C. Partner by estoppels
67. Under Companies (Registration Offices and Fees) Rules, 2014, every foreign company shall file with the Registrar of Companies along with the financial statement in form — ————— which belong to the list of all the places of business established by the foreign company in India.
Correct : D. FC 3
68. Business ethics are needed to create a faith about the quality, quantity, price etc. of products. The customers have more trust and faith in the businessmen who follow ethical rules. They feel that such businessmen would not cheat them. Which one of the following is appropriate for it?
Correct : B. Improve customers confidence
69. Holders of public office should not place themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance or their official duties. This principle of public life is called
Correct : D. Integrity
70. There are many types of ethical conflicts in the
Correct : C. Work place
71. Which one of the following is said to be ―unethical behavior?
Correct : B. Adulteration
72. A contract creates
Correct : A. jus in personam.
73. Provisions of EPF &Misc Provisions Act 1952 are applicable to Cinema/Theatre employing
Correct : C. 5 or more persons.
74. In the absence of Partnership agreement, the Partner has
Correct : A. right to avail interest on advances paid to partnership firm.
75. A person who is employed by the seller to raise the price by fictitious bids. Such
person is known as
Correct : D. All of the above
76. In case of banker's refusal to honour the cheque inspite of sufficient funds in
customer's account, the banker is
Correct : A. liable to compensate the drawer.
77. Dependants benefit is paid at the rate of
Correct : D. 90% of wages in the form of monthly payment.
78. Board of Directors of every listed Company shall constitute an Audit Committee which
shall consists of a minimum of
Correct : B. 3 Directors
79. The maximum limit of bonus payable to an employee is fixed by way of percentage of salary or wages earned by the employee during the accounting year, the percentage is:
Correct : C. 20%
80. Business Ethics also called as Corporate Ethics is a form of
Correct : B. Applied Ethics
81. 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
Correct : B. Voidable contract.
82. Which of the following agency is irrevocable under The Indian Contract Act, 1872?
Correct : C. Agency coupled with interest
83. A sort of tacit understanding/agreement among the intending bidders to stifle competition by not bidding against each other in an auction sale is called as
Correct : B. Knock-out agreement
84. When an instrument is drawn conditionally or for a special purpose as a collateral security and not for the purpose of transferring property therein, it is called
Correct : C. Escrow
85. Which Committee is constituted by the occupier to promote cooperation between
the workers and management in maintaining proper safety and health at workplace?
Correct : A. Safety Committee
86. Under Payment of Bonus Act, 1965, in disputed cases, bonus must be paid
Correct : B. Within 1 month from the date on which the award becomes enforceable.
87. Businessmen or industrialists take initiative to form new companies. Their main
function is to manage the company after its promotion, they are known as
Correct : D. General Promoters
88. The study of ethics can be divided into four operational areas namely meta ethics,
normative ethics, descriptive ethics and
Correct : C. Applied ethics
89. In social agreements usual presumption is
Correct : D. that the parties do not intend to create legal relations between them.
90. In a sale of goods, the doctrine of caveat emptor will not apply when there is
Correct : D. Merchantable Quality
91. A bill of exchange, that is drawn accepted or endorsed without consideration is
called
Correct : A. Accommodation bill
92. Under Industrial Disputes Act, Appropriate Government may require to constitute a workman committee on any day in the preceding 12 months, where an industrial establishment employs
Correct : B. 100 or more workers
93. Employee’s State Insurance Act, 1948 is applicable to all
Correct : D. factories including factories belonging to Government but excluding seasonal factories.
94. A partner must give a public notice of his retirement from the firm in order absolve himself from the liability for the acts of the other partners done after his retirement is known as
Correct : B. Ostensible partner
95. 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
Correct : B. Red-herring prospectus
96. The crucial step in understanding business ethics is
Correct : B. Learning to recognize ethical issues
97. Which of the following reason is applicable for unethical business practices?
Correct : D. Administrative corruption
98. A party who does not suffer any loss in case of breach of contract is entitled to
Correct : D. Nominal damages
99. If part of contract is illegal, then the whole contract will be
Correct : B. Void
100. In which of the following cases, the claim of Quantum Meruitarise