MCQ Law PDF - Institute of Cost Accountants of India

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1...

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 1 Right to Property is a: Fundamental Right Fundamental Duty Constitutional Right None of the above 2 The Constitution of India describes India as: A federation Quasi-federal A Union of states None of the above 3 Constitution is the: Law of the land Administrative Law Constitutional Law of None of the above of the land the land 4 What is the chief source of legal authority in India? People Constitution of India Parliament President of India 5 Which of the following is described as the ‘Soul of the Fundamental Rights Fundamental Duties Directive Principles Preamble Constitution’? of State Policy 6 he Preamble to the Indian Constitution is based on Philosophy of India Objectives Indian Culture Religious Concept Resolution’ drafted & moved by Pandit Nehru 7 The term ‘We’ in Preamble means Indian Government Supreme Courts Indian Parliament The People of India 8 Indian Constitution ensures ‘Justice’ in which of the following Social Economic Political All of the above form 9 Preamble has been amended by which Amendment Act? 27th Constitutional 42nd Constitutional 44th Constitutional 40th Constitutional Amendment Amendment Amendmen Amendmen 10 In which case, the Supreme Court specifically opined that Preamble Berubari Union case Kesavanada Bharati Both (a) & (b) None of the above is ‘not’ a part of the Constitution? case 11 In which case, the Supreme Court rejected the earlier opinion and Berubari Union case Kesavanada Bharati Both (a) & (b) None of the above held that Preamble is an integral part of the Constitution? case 12 The Preamble states that the Constitution derives its authority from Indian Culture Government of India The People of India Princely states 13 As per Preamble, date of adoption of the Constitution is 26th January 1950 26th November 11th December 1946 None of the above 1949 14 42nd Constitutional Amendment (1976) added which of the terms Socialist Secular Sovereign Both (a) & (b) to the Preamble 15 Which part of the Indian Constitution expressly declares that India Fundamental Rights Directive Principles Preamble Fundamental Duties is a Sovereign of State Policy Socialist Secular Democratic Republic? 16 ‘Economic Justice’ as one of the objectives of the Indian the Preamble and the the Preamble and the Fundamental None of the Above Constitution has been provided in Fundamental Rights the Directive Rights and the Principles of State Directive Principles Policy of State Policy 17 The correct sequence of the following words in the Preamble is Sovereign, Sovereign, Socialist, Sovereign, Socialist, None of these Democratic, Socialist, Secular, Democratic, Secular, Secular, Republic Democratic, Republic Republic 18 The Constitution of which country was the first to begin with a USA India Britain Canada Preamble?  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 19 The ideal of Justice (Social, Economic and Political) in the Russian Revolution American Civil War French Revolution Japanese Preamble draws its inspiration from Constitution 20 The ideals of liberty, equality and fraternity in the Preamble have French Revolution Russian Revolution American Civil War None of the above been taken from 21 Which of the following is true about Preamble? It is a source of power It is justiciable Its provisions are None of the above to legislature and a enforceable in courts source of prohibition of law. upon the powers of legislature 22 The 42nd Constitutional Amendment added which of the following Socialist Secular Integrity All of the above 4words in the Preamble? 23 Which of the following words in not mentioned in the Preamble to Sovereign Socialist Democratic Indians the Indian Constitution? 24 The word ‘Sovereign’ mentioned in the Preamble implies_____ India is an India is neither a India is free to All of the above. Independent State. dependency nor a conduct its own dominion of any affairs (both internal other nation and external). 25 Which of the following statements is/are true? India’s membership of India’s membership India can either All of the above. the Commonwealth of of United Nations acquire a foreign Nations does not Organization (UNO) territory or cede a part affect India’s does not limit of its territory in favor Sovereignty in any India’s of manner. Sovereignty. a foreign state 26 In which of the following, are the basic aims and objectives of the Part -1 Preamble Part –II Schedule Indian Constitution discussed? 27 What is the meaning of ‘equality’ in the Indian Constitution? Lack of opportunities Lack of equality Absence of special None of the above. privileges to any section of the society, and provision of adequate opportunities for all individuals without any discrimination. 28 Which of the following terms was not included in a “union of Liberty Flexibility Equality Fraternity trinity” by Dr. B. R. Ambedkar in his concluding speech in the Constituent Assembly? 29 Acceptance to be a valid must : Be absolute Be unqualified Both be absolute & Be conditional unqualified  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 30 A proposal can be accepted : By notice of By performance of By acceptance of All of the above acceptance condition of consideration for a proposal reciprocal promise 31 Competency to contract relates to : Age of parties Soundness of mind Both age and Intelligence of the of the parties soundness of mind parties 32 If only a part of the consideration or object is unlawful, the contract Valid Voidable Void Illegal under Section 24 shall be: 33 When the consent is caused by undue influence, the contract under Valid Void Voidable Illegal Section 19A is: 34 State who is competent to contracts : A minor A person of sound A lunatic A purdanasheen mind women 35 When are the essetial elements of a valid contract : Offer and acceptance lawful consideration Capacity of parties All of the above 36 When one person signifies to another his willingness to do or to Proposal Offer Agreement Contract abstain from doing anything it is known as : 37 What is the effect of wagaring agreements : Agreement is void No suit shall be filed Void and not illegal All of the above 38 A contract is : a legal obligation An agreement plus a Consensus ad idem An agreement plus a legal obligation legal object 39 Which of the following result/results in an offer ? A declaration of An invitation to An advertisement An offer made in a intention offer offering reward to joke anyone who finds the lost dog of the advertiser 40 A special offer can be accepted by any person any friend of offerer the person to whom it any friend of offeree is made 41 An acceptance is not according to the mode prescribed but the a contract no contract a voidable contract an enforceable offerrer decides to keep quiet.In such case there is contract 42 There is a counter offer when a the offeree gives the offerer makes a the offeree makes the offeree accepts it conditions for fresh offer some query acceptance or introduces a fresh term in acceptance 43 Acceptance may be revoked by the acceptor : at any time before the letter of after the letter of before the death of acceptance reaches acceptance reaches the acceptor the offerer the offerer 44 An advertisement to sell a thing by auction is : an offer An invitation to no offer at all a contract offer 45 A makes an offer to B on 10th by a letter which reaches B on 12th. 12th 14th 16th 17th B posts letter of acceptance on 14th which reaches A on 16th. The communication of accetance is complete as against A on :  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 46 An agreement made without consideration is : Valid illegal voidable void 47 A promises to subscribe to a charity.The promise is a : valid contract voidable contract void contract void agreement 48 consideration in a contract : may be past ,present may be present or must be present only must be future only or future future only 49 A promise to compensate , wholly or in part ,a person who has enforeceable not enforceable void voidable already voluntary done something for he promisor is because it is without consideration 50 Where consent is caused by fraud or misrepresentation the contract voidable at the option void enforeceable not affeted in any is of the aggrieved party manner 51 Where both the parties to an agreement are under a mistake as a void voidable illegal not affeted at all matter of fact essential to the agreement , the agreement is 52 What are the requisites of fraud : A representation or The representation The representation or any of the above assertion and it must or asertion must be assertion must have be false of a fact been made with a knowledge of its falsity or without belief inits truth or recklessly 53 A valuable consideration in the eyes of law may consist of : Right, Interest, Profit Forbearance Either of (a) or (b) Both (a) or (b) or Benefit to one party ,detriment, loss or responsibility by other person 54 An agreement with or by a minor is - void voidable at the Voidable at the option valid option of the minor of the other party 55 On attainning the age maturity a minor's agreement can be ratified by him cannot be ratified by becomes void becomes valid him 56 A minor enters into a contract for the purchase of certain He can be sued for He cannot be sued He is liable to return None of the above necessaries.In such a case - fraud for fraud the money 57 contracts made before war with an alien enemy which are against suspended and are dissolved no affected at all void ab initio public policy are - revived after the war is over 58 When a person positively asserts that a fact is true when his misrepresentation fraud undue influence coercion information does not warrant it to be so, thoughhe believes it to be true,there is 59 A promise made without the intention of performing it amounts to innocent fraud negligent wrongful misrepresentation misrepresentation misrepresentation  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 60 A bailee has a right of particular a right of generation a right of both no lien at all over the lien over the goods particulars and goods bailed bailed general lien 61 The position of a finder of lost goods is that of a bailor bailee surety principal debtor 62 A balilee fails to return the goods according to the bailor's the bailee the bailor on both of them neither of them direction.He takes reasonable care of the goods but still the goods are lost.The loss will fall on 63 A who purchases certain goods from B by a misrepresentation valid void voidable invalid pledges them with C. The pledge is 64 A contract of indemnity is a a contingent contract wagering contract quasi contract void agreement 65 The definition of a contract of indemnity as given in the Indian express promises to implied promises to cases where loss cases where the loss Contract Act, 1872 includes indemnity indemnity arises from accidents is caused by the and events not conduct of the depending on the promisor himself or conduct of the by the conduct of promisor or any other any other person person 66 Where there are co - sureties , a release by the creditor of one of discharges the other does not discharges makes all the co- makes the contract them co-sureties the other co-sureties sureties immediatedly of guarantee void liable 67 A guarantee obtained by a creditor by keeping silence as to material valid voidable enforeceable invalid circumstances is 68 A quasi contract is a contract in an agreement creates only a legal is none of these obligation 69 When an agreement is discovered to be void , any person who has is bound to restore it is not bound to is not bound to return may retain it received any advantage under such agreement restore it it 70 A minor has been supplied necessaries on credit -- he is not liable he is personally his estate is liable He is not personally liable liable 71 A finder of lost goods is a bailor bailee true owner thief 72 Quantum meruit means a non-gratuitous an implied promise as much as is earned as much as is paid 73 A agreed to sell 100 shares to B at rs 75 per share , delivery to be A connot recover any A will have to A can recover None of them given on 1st march, B refused to accept delivery on 1st march as damages from B restore to B rs 1700,damages to be price had gone down to rs 60 per share. Subsequently A sold these i.e, the profit he determined by the shares at rs 92 per share made President of the stock exchange 74 Anticipatory breach of a contract takes place during the at the time when the before the at the time when the performance of the performance is due performance is due contract is entered contract into 75 Specific performance may be ordered by the court when the contract is damages are an damages are not an the contract is voidable adequate remedy adequate remedy uncertain  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 76 A undertakes to paint a picture of B.He dies before he paints the is discharged by death becomes voidable at becomes voidable at will have to be picture. The contract the option of B the option of the legal perforemed by the representatives of A legal representatives of A 77 A creditor agrees with his debtor and a third to accept that third performance alteration waiver remission party as his debtor 78 A lends rs 500 to B.He later tells B that he need not repay the breach waiver novation performance amount , the contract is discharged by 79 If a new contract is substituted in place of an existing contract , it is alteration rescission novation waiver called 80 Which of the following are contingent contracts ? contracts of insurance Contracts of wagering agreements (a) and (b) guarantee 81 An agreement to do impossible act is void voidable illegal enforceable under certain circumstances 82 A wagering agreement is forbidden by law immoral opposed to public None of these policy 83 The collateral transactions to an illegal agreement are void illegal voidable not affected at all 84 A person enters into an agreement whereby he is bound to do void on the ground of valid voidable Illegal something which is against his public or professional duty. The public policy agreement is 85 The Negotiable Instruments Act, 1881 is an Act to define and cheques bills of exchange promissory notes, All of the above amend the law relating to: 86 “banker” includes: Any person acting as Any person acting Any person acting as Any person acting as an employee of any as a banker and any an agent of any bank a Managing Director bank and any post post office saving and any post office of any bank and any office saving bank. bank saving bank. post office saving bank 87 Which is NOT an example of “Promissory Note”: I acknowledge myself Mr B, I.O.U ` “I promise to pay B None of the above to be indebted to B in 1,000.” or order ` 500” ` 1,000, to be paid on demand, for value received.” 88 In a Promissory Note, how many parties are involved: 1 2 3 4 89 Which is NOT correct about the “Promissory Note” It contains a It contains the It is an instrument in It is signed by the conditional amount mentioned writing. maker undertaking. on it 90 The Negotiable Instruments Act, 1881 extends to: Only to Capital cities The whole of India. The whole of India The whole of India of the States. except the State of except the Union Jammu and Kashmir. Territories.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 91 The Negotiable Instruments Act makes specific mention of three Promissory note hundi bank draft customary note instruments namely cheque, bill of exchange and 92 Which one of the following is not the characteristic of a negotiable it must be in writing it must be freely it must be registered It must contain instruments ? transfereable definite amount of money 93 A bill of exchange is treated as dishonoured due to non-acceptance does not accept within is incompetent to gives a conditional in all the above cases ,where the drawee 48 hours of contract acceptance presentment 94 A person becomes a ' holder in due course' of a negotiable in good faith for value before maturity by satisfying all instrument if he receives it these 95 A negotiable instrument payble to order can be transferred by simple delivery indorsement indorsement and registered post delivery 96 In case , back of a negotiable instrument is full of indorsements a Allonge Escrow Zikri chit peth slip of paper may be atteched to the instrument for signing indorements. Such a slip is legally known as 97 Material alteration of a negotiable instrument, without the consent after such alteration prior to such because of alteration without such of the parties dischages the parties who have become liable alteration alteration 98 After receiving an uncrossed cheque ,its holder can make on it General crossing special crosing either (a) or (b) neither (a) nor (b) 99 The payment of a cheque , containing special crossing can be at the counter by depositing in by the payee only both (a) and © obtained account 100 A negotiable instrument made without any consideration at all ,is void between all voidable between all void between voidable between parties parties immediate parties immediate parties 101 Inchoate instrument is An instrument An ambiguous A clean bill Drawn conditionally incomplete in some instrument as collateral security respect 102 A failure to present a negotiation instrument should be presented primarily liable secondarily liable willing to make capable of making for payment to the party who is payment payment 103 A negotiation instrument is said to be discharged when the liablility primarily liable party secondarily liable subsequently liable none of the parties of which of the following parties comes to an end? party party 104 The undertaking contained in a promissory note, to pay a certain Conditional Unconditional May be conditional or None of the above. sum of money is---- unconditional depending upon the circumstances 105 Which of the following negotiable instrument is not entitled to days a bill of exchange a promisory note a promisory note a cheque , is always of grace ? payable on specified payable on specified payable 'after sight' payable on demand date date 106 After the dishonour of a negotiable instrument , the holder may get Promissory note bills of exchange cheque both (a) and (b) the fact of dishonour authenticated by a Notary Pblic.The 'noting ' may be done in case of  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 107 A cheque is said to certain a special crossing when two parallel name of some bank name of some bank a/c payee only in (a) and (b) cases lines are drawn across the face of the cheque and writing between and '& Co' the lines the 108 A Promissory Note must be in writing unconditional signed by the maker all of the above 109 A bill is discharged when its acceptor by negotiation back,becomes at maturity after maturity before maturity either (a) or (b) its holder 110 The presentment for sight is required only in case of a promissory a note payable at sight a note payable after a note payable on all of the above note. Which of the following note must be presented for sight? sight demand 111 A bill of exchange payable to bearer on demand is valid voidable invalid none of these 112 The term 'customer' in relation to abanker , means a person who current account for six deposit account for both accounts for six either account keeps with a banker months six months months irrespective of duration 113 The payment of a negotiable instrument becomes due at maturity before maturity after maturity on 3rd day of maturity 114 In case , the rate of interest is not specefied in the instrument , the six percent nine percent twelve percent eighteen percent interest payable is calculated at per annum rate of 115 An act of a firm means: Any partner or agent Any act by all the Any omission by all All of the above of the firm which partners the partners gives rise to a right enforceable by or against the firm 116 Partnership is the relation between persons who have agreed to A minor may be It also depends on Sharing of profits All of the above. share the profits of a business carried on by all or any of them admitted in the partnership also include losses acting for all. Does it mean that losses are not shared? partnership, only for agreement. A person (negative profits) the profits, but he may share the cannot share in losses.profits but may not share in losses. 117 Where no provision is made by contract between the partners for Particular partnership Partnership for a partnership at will None of the above the duration of their partnership, or for the determination of their fixed term partnership, the partnership is called as: 118 What information shall be given to the Registrar of Firms by a New opening/closing Change in the name What there is change All of the above. registered partnership firm: of the existing branch, of and address of the in the name of the if any. partner (s)/change in firm or in location of the constitution of the principal place of the firm business 119 Who can inspect the Register and filed documents at the office of Any Government The Partners of the The partners of the Any person the Registrar: servant firm other firms  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 120 What are the right of partners after dissolution: To have the surplus To have business To have the property All of the above distributed among the wound up after of the firm applied in partners or their dissolution payment of the debts representatives and liabilities of the according to their firm rights 121 Where any member of a firm has died or otherwise ceased to be a 9% p.a. 18% p.a 6% p.a. 12% p.a. partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of on the amount of his share in the property of the firm: 122 The dissolution of partnership means: It means the It means the change It means the None of the above. dissolution of in the relations of reconstitution of the partnership between the partners firm. all the partners of a firm 123 In what circumstances a partner may retire: In accordance with Where the With the consent of All of the above. an express agreement partnership is at all the other partners by the partners will, by giving notice in writing to all the other partners of his intention to retire. 124 What would be the position, where a minor elect not to become a He shall be entitled to His rights and His share shall not be All of the above partner: sue the partners for liabilities shall liable for any acts of his share of the continue to be those the firm done after property and profits of a minor under the date of the notice. this section up to the date on which he gives public notice. 125 The maximum number of partners in a firm carrying on banking 5 10 15 20 business cannot exeeds  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 126 There is no provision in the partnership deed regarding the duration partnership at will partnership for an patnership by partnership not of pasrtnership.This is indefinite period ostoppel recognised by lwa 127 registration of a firmunder the parnership act , 1932 compulsory not optional not necessary inevitable 128 A nominal partner is liable for the debts of not liable for the liable for a nominal one whose liability is the firm debts of the firm sum primary 129 If a minor chooses to become a partner on attaining the age of from the date of his from the date of his from the date of his from the date of his majority, he will be liable for the debts of the firm attaining majority admission to the election to become a attaining majority or benefits of the partner of the firm election which is partnership earlier 130 Public notice is not given on the death of a partner but the firm the estate of the the estate of the his legal None of these continues the business.for the acts of the firm done after his death deceased parten is deceased partner is representatives are liable not liable personally liable 131 The position of a minor partner is dealt with in the Indian Sec. 25 Sec. 29. Sec. 30 Sec. 35 Partnership Act ,1932 in 132 Where a partner is entitled to interest on capital subscribed by him only out of profit only out of capital out of profits or out None of these such interest will be payable of capital 133 A change in the nature of the busines of a can be made if the majority of the the senior partners all the partners agree the working partners partners agree agree agree 134 in the absence of any agreement , interest on advances by a partner allowed at 15% allowed at 6% allowed at market rate not allowed at all is of interest 135 An act of a firm means: Any partner or agent Any act by all the Any omission by all All of the above of the firm which partners the partners gives rise to a right enforceable by or against the firm 136 Partnership is the relation between persons who have agreed to A minor may be It also depends on Sharing of profits All of the above. share the profits of a business carried on by all or any of them admitted in the partnership also include losses acting for all. Does it mean that losses are not shared: partnership, only for agreement. A person (negative profits) the profits, but he may share the cannot share in losses. profits but may not share in losses. 137 Who can inspect the Register and filed documents at the office of Any Government The Partners of the The partners of the Any person the Registrar: servant firm other firms 138 What are the right of partners after dissolution: To have the surplus To have business To have the property All of the above distributed among the wound up after of the firm applied in partners or their dissolution payment of the debts representatives and liabilities of the according to their firm. rights.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 139 Where any member of a firm has died or otherwise ceased to be a nine per cent, per eighteen per cent, six per cent per twelve per cent, per partner, and the surviving or continuing partners carry on the annum per annum annum annum business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of on the amount of his share in the property of the firm: 140 The dissolution of partnership means: It means the It means the change It means the None of the above. dissolution of in the relations of reconstitution of the partnership between the partners firm. all the partners of a firm 141 In what circumstances a partner may retire: In accordance with an Where the With the consent of All of the above. express agreement by partnership is at all the other partners the partners will, by giving notice in writing to all the other partners of his intention to retire. 142 What would be the position, where a minor elects not to become a He shall be entitled to His rights and His share shall not be All of the above partner: sue the partners for liabilities shall liable for any acts of his share of the continue to be those the firm done after property and profits. of a minor under the date of the notice. this section up to the date on which he gives public notice. 143 After a partner’s death the business is continued in the old firm The continued use of If the estate of the The estate of the The legal heirs of the name. Whether the legal heirs of the deceased partner are liable for the name or of the deceased person’s deceased person is deceased partners any acts of the firm: deceased partner’s property is liable for any of the shall be liable for name as a part thereof insufficient to make act done by the firm. any of the act done shall not of itself good, the personal by the firm after the make his legal assets of the legal demise of the partner representative or his heirs will be liable estate liable for any for any of the acts act of the firm done done by the firm. after his death.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 144 The partners in a firm may, by contract between the partners: restrict the implied extend the implied None of the above Both A and B are authority of any authority of any correct partner partner 145 Whether a notice given to a partner, who habitually acts in the It will deemed as Yes, it operates as It depends on the No, it will not business of the firm of any matter relating to the affairs of the firm, personal information notice to the firm, nature of the deemed as notice to will be deemed as notice to the firm: to that partner except in the case of concerned partner the firm. a fraud on the firm whether he inform so committed by or to other partners with the consent of that partner 146 What would be the position where a minor elects to become a His share in the His rights and He also becomes All of the above partner. property and profits of liabilities as a minor personally liable to the firm shall be the continue up to the third parties for all share to which he was date on which he acts of the firm done entitled as a minor becomes a partner since he was admitted to the benefits of partnership 147 Where a partner has paid a premium on entering into partnership of He will not be entitled He will not be He shall be entitled to All of the above a fixed term, and the firm is dissolved before the expiration of that for repayment of theentitled for repayment of the term otherwise than by the death of a partner, whether any premium if the repayment of the premium or of such repayment of the premium is permissible: dissolution is mainly premium if the part thereof as may be due to his own dissolution is in reasonable, regard misconduct pursuance of an being had to the terms agreement upon which he containing no became a partner and provision for the to the length of time return of the during which he wasa premium or any part partner of it 148 Whether a partner after dissolution of the partnership firm, carry on He can use the He can’t use the He can use the Both the points the business in the erstwhile business name of the firm business name of the business name of the business name of the mentioned at A and dissolved firm name, dissolved firm. dissolved firm, C are correct if he has brought the provided there was a goodwill of the firm. contract between the partners of the dissolved firm 149 The State Government may appoint Registrars of Firms for the To be a Central To be a public To be State To be a private purposes of this Act, every Registrar shall be deemed Government Servant. servant within the Government Servant servant meaning of section 21 of the Indian Penal Code  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 150 Non-registration of a firm will not affect: The right of the The right to any suit The right of a firm or both (a) or (b) partner to sue for the or claim of set-off partners of a firm dissolution of the not exceeding Rs. having no place of firm, or for the 100 in value business in India. accounts of the dissolved firm, or for share of the property of the dissolved firm. 151 How a firm may be dissolved A firm may be A firm may be A firm may be All of the above dissolved by the Court dissolved by the dissolved in order. certain accordance with a contingencies contract between the partners 152 Where a partner has become of unsound mind the court may on the petition of any not dissolve the firm order the other none of these dissolved partner partners to continue 153 If the assets of a firm are insufficient to discharge to debts and in the profit -sharing in the capital - ratio equally as determined by the liabilities of the firm, the partners shall bear the deficiency ratio court 154 On attaining the majority, the minor partner has to decide and give Within twelve months Within three months Within six months of Within nine month a public notice within the prescribed period, whether he will of his attaining of his attaining his attaining majority of his attaining continue as partner in the firm or will quit. What is that prescribed majority or of his majority or of his or of his obtaining majority or of his period: obtaining knowledge obtaining knowledge knowledge that he obtaining knowledge that he had been that he had been had been admitted to that he had been admitted to the admitted to the the benefits of admitted to the benefits of benefits of partnership, benefits of partnership, partnership, whichever date is partnership, whichever date is later whichever date is later whichever date is later later 155 In which conditions a person may be deemed as partner by When he by his When knowingly When he expressly by All of the above estoppels or holding out: conduct represents permits himself to words spoken or himself to be a partner be represented, to be written let the others in a firm a partner in a firm. that he is a partner in a firm. 156 M/s XYZ is partnership firm and X, Y and Z are the partners. After utilising the Nothing wrong in it, Mis-appropriating the None of the above. During the course of business travel, partner X recovered a sum of amount for few days, since he has funds of the firm and Rs. 15000 in cash from the debtor of the firm and credit in his he returned back the personally made utilisation of the same personal bank account. The act of X will amounts to: money to the firm, so efforts in realising for the personal gain. it will not come under the dues from the the mis-appropriation debtor. of the funds.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 157 What is the liability of a retiring partner, after the date of his He shall not be liable He and the partners He shall be liable for Only A and B are retirement'. for the act done by continue to be liable the acts done by him correct. other partners during as partners to third only on behalf of the his tenurein the parties for any act firm during his partnership firm. done by any of them tenure, towards the which would have third party. been an act of the firm if done before the retirement, until public notice is given of the retirement 158 A limited liability partnership is: Not a separate entity A legal entity A body corporate Only B and C are from that of its separate from that of correct partners its partners 159 A LLP shall be governed by the provisions of: The Companies Act, The Limited The Co-operative The Indian 2013 Liability Partnership Societies Act, 1912 Partnership Act, Act, 2008 1932 160 Whether a HUF can become partner in LLP: HUF may become No, HUF can’t Yes, HUF may None of the above. partner of LLP become partner in become partner of provided the Registrar the LLP. LLP. may grant permission in this behalf. 161 How many designated partners are required in LLP: At least two Seven designated Two designated At least seven designated partners partners partners designated partners 162 The LLP shall file the Statement of Account and Solvency in the Form 8 Form 7 Form 6 Form 5 prescribed form. Which is this Form: 163 Who is the authority to grant compounding of offence under the The Registrar of The Central The Registrar The Registrar of Co- LLP Act: Firms Government operatives 164 What is the time limit within which LLP shall file Annual Return Within 30 days of Within 45 days of Within 60 days of Within 15 days of with the Registrar: closure of its financial closure of its closure of its financial closure of its year. financial year. year. financial year. 165 Which of the following is true about a Limited Liability A Limited Liability A Limited Liability A Limited Liability Both b and c are Partnership? Partnership is not a Partnership is a legal Partnership is a body correct distinct entity from its entity separate from corporate partners its partners  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 166 Which of the following is true about the number of designated A Limited Liability A Limited Liability A Limited Liability A Limited Liability partners required in a Limited Liability Partnership? Partnership can have Partnership can have Partnership can have Partnership can have at least two designated at least three at least seven at least four partners designated partners designated partners designated partners 167 Every Limited Liability Partnership must maintain its books of Particulars of the An inventory of the A complete record of All of the above accounts diligently. Those books of accounts should maintain. receipts and cost of goods the assets and expenditures at the purchased, work in liabilities of the Limited Liability progress, Limited Liability Partnership with the inventories, finished Partnership details of those goods as well as the transactions cost of goods sold 168 As per Sale of Goods Act, this is not included: A Limited Liability A Limited Liability A Limited Liability A Limited Liability Partnership should Partnership should Partnership should Partnership should maintain its accounts maintain its maintain its accounts maintain its accounts at the branch office accounts at the at the head office at the registered corporate office office 169 As per Sale of Goods Act, this is not included: A Limited Liability A Limited Liability A Limited Liability All of the above Partnership should Partnership should Partnership should maintain its books of maintain its books maintain its books of accounts on the of accounts on the accounts based on the accrual basis cash basis double-entry system of accounting 170 LLP shall file its Annual Return in which form: Form 12 Form 11 Form 10 Form 9 171 The audit of accounts of every LLP is not''' compulsory if its: Turnover does not Turnover does not Turnover does not Turnover does not exceed in any exceed, in any exceed, in any exceed, in any financial year, Rs 40 financial year, Rs 30 financial year, Rs 20 financial year, Rs 10 lakh or whose lakh, or whose lakh, or whose lakh, or whose contribution does not contribution does contribution does not contribution does not exceed Rs 25 lakh not exceed Rs 25 exceed Rs 25 lakh exceed Rs 25 lakh lakh 172 The Limited Liability Partnership Act, 2008 came into force on 21st March 2009 23rd March 2009 31st March 2009 30th March 2009 ____ 173 Which of the following cannot be converted into LLP? Partnership firm Private company Listed company unlisted company 174 The approved name of LLP shall be valid for a period of ___ from 1 Month 2 Months 3 months 6 months the date of approval:  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 175 For the purpose of LLP, Resident in India means: Person who has Person who has Person who has Person who has stayed in India for a stayed in India for a stayed in India for a stayed in India for a period of not less thanperiod of not less period of not less than period of not less 182 days during the than 180 days 181 days during the than 182 days during current year. during the immediately the immediately immediately preceding one year. preceding one year. preceding one year. 176 In which kind of partnership one partner has unlimited liability and Partnership-at-will Limited liability General partnership Particular other partner have limited liability? partnership partnership 177 Any change in the partners of a limited liability partnership: May be made only Shall not affect the Shall affect its Shall affect the with the permission of existence, rights or existence. rights or liabilities of the Registrar. liabilities of the the limited liability limited liability partnership. partnership. 178 What is the filing fee for LLP in case where the contribution of Rs.150. Rs. 200 Rs.100. Rs. 50. LLP exceed Rs Five lakh but does not exceeds Rs Ten lakh: 179 A limited liability partnership shall, where a person becomes or Within thirty days Within sixty days Within fifteen days Within forty five ceases to be a partner and where there is any change in the name from the date he from the date he from the date he days from the date and address of the partner, file a notice with the Registrar: becomes or ceases to becomes or ceases to becomes or ceases to he becomes or be a partner. be a partner be a partner. ceases to be a partner. 180 Every limited liability partnership shall have atleast two designated An Indian resident A person of foreign A resident inIndia A person having partners who are individuals and at least one of them shall be: national Indian Passport 181 n terms of section 23 (2) of the LLP Act, 2008, every LLP shall file Form No.2 Form No.3 Form No. 4 Form No. 1 information with regard to the LLP agreement in the prescribed form, with the Registrar within thirty days of the date of information. What is the prescribed Form No.: 182 maximum no. of persons in a LLP is 50 100 20 No limit 183 duration of LLP is limited depends on the extends upto proper None of the above. partnership dissolution (perpetual agreement succession) 184 The. …….. Is reponsible for doing all acts, matters and things as designated partner active partner designated director All the partners are required to be done by LLP as per the Act. 185 Which of the following enjoys separate legal entity status ? Partnership firm LLP Company Both b and c are correct 186 What is the primary advantage of a limited liability partnership Limited liability for Unlimited liability tax advantages for Ease of formulation (LLP) ? all partners for all partners partners 187 In an LLP , which of the following is true regarding the personal Personal assets are Personal assets are Personal assets are Personal assets are assets of partners ? fully protected from liable fro business partially liable for only liable if there is business liabilities debts business debts fraud  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 188 Which document is required to establish an LLP Articles of LLP Agreement Memorandum of Certificate of Association Association Incorporation 189 Who is responsible for the day-to-day management of an LLP All partners equally The managing An appointment A hired management partner(s) board of directors team 190 In an LLP, which partner is typically responsible for signing silent partner active partner Managing partner Limited partner contract and legal documents on behalf of the partnership? 191 What type of professions are often required to form a Limited Medical professionals Lawyers Chartered All of the above Liability Partnership (LLP) in certain jurisdictions? Accountants 192 In an LLP , which partners are typically not involved in the day-to- Limited partners General partners Managing partner silent partners day operations and decision making 193 What is the primary disadvantag of an LLP compared to a Limited Liability for ease of formation taxation lack of perpetual corporation? partners existence 194 How many schedules are available in LLP act ? 2 schedules 4 schedules 1 schedules schedule not prescribed 195 Age of adolescent worker is- 10 14 18 21 196 Certificate of fitness to be young worker is to be granted by- Occupier of the Inspector of the Certifying surgeon None of the above factory factory 197 White wash or color wash should be carried out atleast once in 14 months a) 24 months; 48 months; 60 months every period of- 198 Where more than_______ workers are employed provision shall be 100 250 500 1000 made for cool drinking water during hot weather. 199 Shelter rooms with suitable lunch rooms are to be provided, if more 100 250 500 None of the above than____ workers are employed. 200 No female child shall be allowed to work in any factory except 8 a.m., and 7 p.m.; 6 p.m., and 6 a.m., 6 a.m., and 7 p.m., 10 p.m. and 5 a.m., between- 201 Compensatory holidays are to be availed within month. 1-month 2 months 6 months 9 months 202 Which one of the following amounts to safety measure? Artificial Ventilation; Fencing of factory; First aid appliances humidification; 203 Identify from the following which is the power of Inspector of Enter into any place Make inquiry into Seize or take copies All the above. Factory. ofa factory any accident; of any document; 204 Weekly holiday shall be First day of the week; Last day of the Third day of the None of the above. week; week; 205 Which does not amount to retirement? Retrenchment; Resignation; Dismissal; Superannuation. 206 Gratuity is payable to an employee- On his Retirement; Retrenchment; In all the above superannuation; cases. 207 The gratuity is payable to an employee shall not exceed- 12 months pay; 16 months pay; 20 months pay 24 months pay. 208 The employer shall display an abstract of the Act and the Rules in U H O N Form No-  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA BUSINESS LAWS AND ETHICS (PAPER - 5) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 209 If sufficient cause is shown the appropriate Government may 30 days; 60 days; 90 days; No time limit. condone the delay in filing appeal against the order of the Controlling Authority, for- 210 Nomination is to be made by an employee- Immediately on his After completion of After he is made None of the above appointment one year service; permanent; 211 Which one of the following is to be included in the definition of Dearness allowance Overtime allowance Commission; House rent ‘wage’? allowance. 212 If an employer intends to close the business he is to send notice to 10 days; 30 days; 60 days; 90 days. the Controlling Authority within________ before the intended closure. 213 Nomination is to be filed in ________________ Single form Duplicate Triplicate Quadruplicate. 214 Which will not amount to service of notice under the rule? Personal service; By registered post; By courier; Both a and b. 215 Which one of the following will not include in the definition of Dearness allowance; Overtime; Cash value for All the above. basic wages as per the Employee Provident Fund and consideration Miscellaneous Provisions Act,1952? 216 The contribution of employer to insurance fund is- 1% 10% 12% None of the above. 217 Contribution of 10% to PF is applicable to- Any establishment in Any establishment Jute company; All of the above. which less than 20 declared as sick employees are industrial company employed; 218 The minimum