Quiznetik
Laws and Ethics | Set 3
1. A proposal may be revoked at any time before
A. the communication of acceptance
B. the payment of consideration
C. signing the agreement
D. execution of the proposal
Correct : A. the communication of acceptance
2. Which of the following is not to be taken care while admitting a new partner?
A. Computation of newprofit sharing ratio and sacrifice ratio
B. Accounting treatment of goodwill
C. Professional qualification of admitting partner
D. Revaluation of assets and liabilities
Correct : C. Professional qualification of admitting partner
3. Where goods are delivered to the buyer and he refuses to accept them, the buyer is not bound to
A. retain them with him.
B. look-after the goods.
C. return them to the seller.
D. store them in his godown.
Correct : C. return them to the seller.
4. No child shall be allowed to work in a factory unless he has completed his
A. 12th year
B. 14th year
C. 16th year
D. 18th year
Correct : B. 14th year
5. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than
A. three years
B. five years
C. seven years
D. ten years
Correct : B. five years
6. The Employees' State Insurance Corporation is
A. Hindu Undivided Family
B. Local Authority
C. Charitable Institution
D. Body Corporate
Correct : D. Body Corporate
7. The annual return of an OPC shall be signed by the company secretary or where there is no company secretary, by the
A. Senior executive of the company
B. Auditor of the company
C. Director of the company
D. Advocate of the company
Correct : C. Director of the company
8. If there is any mis-statement in the prospectus then it would attract the liability on
A. The printer
B. The issuer
C. The publisher
D. The proof-reader
Correct : B. The issuer
9. Every company limited by shares shall keep and maintain the Register of Members in Form No.
A. MGT-1
B. MGT-3
C. MGT-7
D. MGT-12
Correct : A. MGT-1
10. Ethics are the set of moral principles that guide a person's
A. Behaviour
B. Philosophy
C. Religion
D. Profession
Correct : A. Behaviour
11. Anu threaten to kidnap Binu's daughter if she does not sell her house worth ` 90 Lakh to her for ` 20 Lakh. This Contract is void due to —
A. inadequacy of Consideration
B. absence of Free Consent
C. incompetence of Parties
D. None of the above
Correct : B. absence of Free Consent
12. The Latin Maxim "Nemo Dat Quod non Habet" means
A. no man can pass a better title than he has
B. let the Buyer beware
C. no consideration – No contract
D. ignorance of law is no excuse
Correct : A. no man can pass a better title than he has
13. As per the RBI Act, which of the following negotiable Instruments can be payable to the bearer on demand?
A. Cheque
B. Hundi
C. Bank Draft
D. Promissory Note
Correct : A. Cheque
14. When a partnership firm is continued even after the expiry of fixed term, it is called
A. Partnership at Will
B. Perpetual Partnership
C. Fixed Partnership
D. Particular Partnership
Correct : A. Partnership at Will
15. The amount of gratuity payable to an employee shall not exceed
A. Ten months’ pay
B. Twelve months’ pay
C. Twenty months’ pay
D. Twenty-five months’ pay
Correct : C. Twenty months’ pay
16. In case of a private company, mention the number of members personally present to form the quorum of a meeting of the company.
A. One member
B. Two members
C. Three members
D. Four members
Correct : B. Two members
17. Which of the following is not a valid medium of sending notice to all shareholders?
A. By registered post or speed post
B. Through public advertisement
C. Through registered email-id
D. Through courier service
Correct : B. Through public advertisement
18. If any default is made in filing refund of money, the company and every officer, who is in default shall be liable to a penalty maximum up to
A. ` 50,000
B. ` 75,000
C. ` 1,00,000
D. ` 1,25,000
Correct : C. ` 1,00,000
19. A person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it, he is capable of
A. listening it
B. hearing it
C. understanding it
D. interpreting it
Correct : C. understanding it
20. Ankit agrees to pay Bina ₹1500 if it rains today, otherwise Bina pays Ankit ` 2000. This is a
A. Gambling
B. Wagering agreement
C. Valid agreement
D. Speculation
Correct : B. Wagering agreement
21. Writing of a person's name on the face or back of an instrument or on a slip of paper attached to it is known as
A. Endorsement
B. Transfer
C. Negotiation
D. Transmission
Correct : A. Endorsement
22. Anusua and Shrita formed a partnership to undertake a construction of a shopping complex in New Delhi. This partnership is called
A. Partnership at will
B. Particular partnership
C. Unlimited partnership
D. Partnership with undefined mission
Correct : B. Particular partnership
23. As per the Minimum Wages Act 1948, Adolescent means a person who has completed the age of 14 years but not completed the age of
A. 15
B. 14
C. 21
D. 18
Correct : D. 18
24. Every employee shall be entitled to receive bonus from his employer in
A. a financial year
B. an accounting year
C. a calendar year
D. a manufacturing year
Correct : B. an accounting year
25. The annual return of an OPC shall be signed by
A. the company secretary
B. the director
C. the chief accountant
D. the auditor
Correct : A. the company secretary
26. The minimum age limit for appointment of managing director and the wholetime director is
A. 18 years
B. 21 years
C. 25 years
D. 30 years
Correct : B. 21 years
27. A company cannot remove a director appointed
A. at the annual general meeting
B. at the extra ordinary general meeting
C. by the promoter
D. by the tribunal
Correct : D. by the tribunal
28. Moral management requires ethical
A. producer
B. leadership
C. market
D. customer
Correct : B. leadership