Business Law - 1

1.Partnership is based on ________.

Correct Answer
Faith
2.A Company subject to the provisions of section 32 of the companies act as
unlimited may register under this Act as a ________.
Correct Answer
Limited company
3. Question
Complaint under the Consumer Protection Act, 1986 relates to :-
Correct Answer
Unfair Trade Practices , Restrictive Trade Practices , Charging of higher prices
4. The monetary jurisdiction is based upon the :-
Correct Answer
Amount of relief claimed by the complainant
5. Unpaid seller's Right to stop the goods in transit arises only when the buyer is
________
Correct Answer
Bankrupt
6.Special resolution and confirmation by ________ is required for alteration of
Memorandum.
Correct Answer
Company Law Board
7. According to the Consumer Protection Act, 1986, a person includes :-
Correct Answer
Hindu undivided family , Co-operative society , Individual as well as juristic
person
8. Company based on ownership is :-
Correct Answer
Public company
9. The National Commission has the power to entertain appeals against the
orders of any :-
Correct Answer
State Commission
10. Non-registration of a partnership firm does not make the partnership
agreement :-
Correct Answer
Void
11. Agent has duties towards principal in addition to :-
Correct Answer
Conducting principal's business , Rendering accounts to principal ,
Communicating with the principal
* In the Bill of Exchange, the person to whom the bill is made payable is called as
:-
Correct Answer
Payee
* Where the partners agree to carry on the business for a definite period of time,
the partnership is said to be :-
Correct Answer
For a fixed period
*The Exception to the rule of "buyer beware" are
Correct Answer
quality of goods are not merchantable , presence of patent defect in goods
*A company which has a control over a subsidiary company is a :-
Correct Answer
Holding company
*Following are the conditions needed to prove an act of a partner is an act of a
partnership firm
Correct Answer
such a act be done in a ordinary course of a partnership firm , it must be related
to the business of the firm , act must have been done in the name and on behalf of
the firm
*There are two types or kinds of capital of a company, i.e. owned capital and
borrowed capital.
Correct Answer
True
*Classification of companies based on the jurisdiction of functioning is :-
Correct Answer
A National Company , Multinational Company , Foreign Company
*A company is :-
Correct Answer
Voluntary Association of persons , An artificial legal person , A separate legal
entity
*Presentation of Negotiable Instrument
For payment
When an endorser signs the instrument and adds a direction to pay the amount
mentioned therein
Endorsement in full
Default in payment of amount of cheque
Dishonour of cheque
Notice of dishonour of cheque
Mandatory provision
*The object of the contract should be :-
Correct Answer
Legal one , Lawful
*The Indian Contract Act, 1872, does not cover all those duties which are not
________ in nature.
Correct Answer
Contractual
*Following persons can not be called partners
Correct Answer
minors , insolvents , co-owners without the agreement to carry on the business
*There can not be any partnership where a business is carried on
Correct Answer
with a benevolent purpose , where any one of the partners is entitled to total
profit earned
*Partnership is nothing but a psychological relationship existing between the
partners.
Correct Answer
False
*Loss of profits is an example of liquidated damages.
Correct Answer
False
*An unregistered firm can bring an action in any court of Law against
Correct Answer
a partner who steals the property of the partnership firm , a partner who
purposely damages the property of the partnership firm
*The company law board confirms the change of registered office of the company
within a state.
Correct Answer
False
*Ratification is one of the ways of ________ agency.
Correct Answer
Creating
*A company can become a partner or can enter into a partnership agreement.
Correct Answer
False
*Following are the characteristics of the partnership at will :-
Correct Answer
Partners are always free to break their relationship at their will , It is for
indefinite period , No provision for determination or termination of the
partnership
*The liability of companies on the basis of liability are :-
Correct Answer
Unlimited companies , Limited by guarantee , Limited by shares
*The person who buys the goods for trading purposes is not a ________ under
the Consumer Protection Act, 1986.
Correct Answer
Consumer
*An agreement with a minor is not voidable but :-
Correct Answer
Void ab initio
*An agreement to sell takes place in the case of existing goods or specific goods.
Correct Answer
False
*An insolvent person can accept or endorse a bill.
Correct Answer
False
*A stipulation in a contract of sale with reference to goods which are subject there
of may be :-
Correct Answer
A condition or warranty
*The State Council consists of the following members :-
Correct Answer
Minister in-charge of consumer affairs in the State Govt. , Members representing
such interests as may be prescribed by the State Govt.
*Subsidiary company can hold shares and can acquire membership of the holding
company.
Correct Answer
False
*Match The Following
Minor Partner
Admitted for profits only
Dissolution of a Partnership
Death or Insanity of the partners
Firm
Partners
Partner
Agents of the firm
Partnership
Can be formed at Will

*Following are the elements which constitute a partnership

Correct Answer
there must be a contract regarding a partnership , there must be an association of
two or more persons
*There should be a ________ and real necessity for creating an agency.
Correct Answer
Definite
*For obtaining recognition as an 'Appropriate Laboratory", the applicant shall
send an application in the proforma prescribed by the :-
Correct Answer
Bureau of Indian Standard
*The object of carrying on a business must be :-
Correct Answer
Sharing of profits
*Company is treated as a legal person distinct from its members.
Correct Answer
True
*An offer must create ________ relationship.
Correct Answer
Legal
*A person is considered the holder of Negotiable Instruments if :-
Correct Answer
His name appear on an instrument , He is in possession of bearer instrument , He
is the endorsee of a cheque