Law Ethics And Communication

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  • 1/173 Questions

    What are the grace days allowed on a negotiable instrument after the day on which it becomes payable?

    • 5 days
    • 2 days
    • 1 day
    • 3 days
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About This Quiz

This quiz on 'Law Ethics and Communication' tests knowledge on corporate laws, specifically focusing on company types, shareholding, and regulatory compliance. It evaluates understanding of legal structures and restrictions crucial for professionals in law and business sectors.

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  • 2. 

    Every Member of the company has a right to ask for the copies of the following:

    • MOA

    • Resolutions passed at Meetings

    • AOA

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Every member of a company has the right to ask for copies of the Memorandum of Association (MOA), resolutions passed at meetings, and Articles of Association (AOA). This means that they have the right to access and obtain these important documents that outline the company's structure, rules, and decisions. By having access to these documents, members can stay informed about the company's operations and exercise their rights as shareholders or stakeholders.

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  • 3. 

    Bonus shall be paid to:

    • Daily Wage laborer

    • Temporary employee

    • Part-time employee

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The given answer "All of the above" is correct because the question asks about who will receive a bonus, and all three options - daily wage laborer, temporary employee, and part-time employee - are eligible to receive a bonus. Therefore, all of these categories of employees will be paid a bonus.

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  • 4. 

    Which of the following days shall be deemed to be the working days of an employee and shall be counted while calculating the total working days on which he has been on work for the purpose of bonus:

    • Day when he has been laid off

    • Leave with salary or wage

    • Maternity leave

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The question is asking which days should be considered as working days for the purpose of calculating the total working days for bonus calculation. The correct answer is "All of the above" because all the mentioned days - day when he has been laid off, leave with salary or wage, and maternity leave - should be counted as working days. Even though the employee may not physically be present at work during these days, they are still entitled to receive salary or wage, and therefore, these days should be included in the calculation of total working days for bonus purposes.

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  • 5. 

    Which of the following is a principle of Oral Communication:

    • Be Sincere

    • Allow time to respond

    • Use polite words and tone

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The principle of oral communication is to be sincere, allow time to respond, and use polite words and tone. Being sincere means speaking honestly and genuinely, without any hidden agendas or deception. Allowing time to respond is important because it shows respect for the other person's thoughts and opinions, and allows for a more meaningful and effective conversation. Using polite words and tone is crucial in maintaining a respectful and positive communication environment, as it helps to avoid misunderstandings and conflicts. Therefore, all of the above options are principles of oral communication.

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  • 6. 

    Which of the following is the Right of a Member in a company:

    • To attend general meetings

    • To obtain copies of MOA and AOA

    • To Inspect company books of account

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the options listed are rights of a member in a company. The right to attend general meetings allows members to participate in decision-making processes and stay informed about the company's activities. The right to obtain copies of the Memorandum of Association (MOA) and Articles of Association (AOA) ensures that members have access to the company's governing documents. Lastly, the right to inspect company books of account enables members to review the financial records and ensure transparency and accountability within the company.

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  • 7. 

    The Payment of Bonus Act, 1965 does not apply to employees employed by:

    • Reserve Bank of India

    • Life Insurance Corporation

    • Indian Red Cross Society

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Payment of Bonus Act, 1965 does not apply to employees employed by the Reserve Bank of India, Life Insurance Corporation, and the Indian Red Cross Society. This means that these organizations are exempted from the provisions of the act regarding the payment of bonuses to their employees.

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  • 8. 

    An employee in the following cases is entitled to bonus:

    • A probationer

    • A dismissed employee reinstated with back wages

    • A piece-rated worker

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    In all three cases mentioned, the employee is entitled to a bonus. A probationer, although not yet a permanent employee, is still eligible for a bonus as per company policies. Similarly, a dismissed employee who is reinstated with back wages is entitled to receive a bonus as part of their compensation. Lastly, a piece-rated worker, who is paid based on their output, is also eligible for a bonus based on their performance. Therefore, all of the above scenarios warrant the entitlement of a bonus for the employees.

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  • 9. 

    The Employee Provident Fund Scheme extends to whole of India, except to the state of:

    • Andhra Pradesh

    • Bihar

    • West Bengal

    • Jammu and Kashmir

    Correct Answer
    A. Jammu and Kashmir
    Explanation
    The Employee Provident Fund Scheme extends to the whole of India, except for the state of Jammu and Kashmir. This means that employees in all other states in India are covered under the scheme, which provides them with a retirement savings plan and social security benefits. However, due to the special status of Jammu and Kashmir, the scheme does not apply in this state.

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  • 10. 

    Share Capital can be altered by;

    • Sub-division

    • Cancellation

    • Consolidation

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The share capital of a company can be altered through various means, including sub-division, cancellation, and consolidation. Sub-division refers to dividing existing shares into smaller units, while cancellation involves the elimination of shares. Consolidation, on the other hand, combines multiple shares into a single unit. Therefore, all of the mentioned options can be used to alter the share capital of a company.

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  • 11. 

    The right to receive the notice of AGM rests with:

    • Members

    • Auditor

    • Directors

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the above have the right to receive the notice of the Annual General Meeting (AGM). Members of the company have the right to be informed about the AGM, as they are the owners of the company and have a vested interest in its affairs. The auditor, being an independent professional appointed to review the company's financial statements, should also be notified to ensure transparency and accountability. Directors, being responsible for the management of the company, need to be informed about the AGM to fulfill their duties and make informed decisions. Therefore, all three parties mentioned have the right to receive the notice of the AGM.

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  • 12. 

    Which of the following is treated as an Ordinary Business at a general meeting?

    • Consideration of financial statements

    • Declaration of dividend

    • Appointment of Directors

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the above options are treated as Ordinary Business at a general meeting. The consideration of financial statements is a regular activity where the company's financial performance is reviewed. The declaration of dividends is also a routine matter where the distribution of profits to shareholders is decided. Lastly, the appointment of directors is a common agenda item as it involves the selection of individuals to serve on the company's board. Therefore, all three options are considered as ordinary business matters that are typically discussed and decided upon at a general meeting.

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  • 13. 

    Which of the following allowance forms the part of salary for computing bonus payable to an employee?

    • Dearness Allowance

    • Travelling Allowance

    • House Rent Allowance

    • Educational allowance

    Correct Answer
    A. Dearness Allowance
    Explanation
    The Dearness Allowance forms a part of the salary for computing bonus payable to an employee. Dearness Allowance is a component of salary that is provided to employees to offset the impact of inflation on their purchasing power. It is usually calculated as a percentage of the basic salary and is revised periodically to account for changes in the cost of living. Since the bonus payable to an employee is often based on their salary, the Dearness Allowance is considered while calculating the bonus amount.

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  • 14. 

    Which of the following is included in the definition of Prospectus?

    • Advertisement

    • Circular

    • Notice

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above". A prospectus is a document that provides information about a company, investment, or project to potential investors. It typically includes advertisements, circulars, and notices that help promote and provide details about the offering. Therefore, all of these options are included in the definition of a prospectus.

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  • 15. 

    Securities Premium accounts may be utilized by the company towards;

    • Writing of preliminary expenses

    • Writing off Commission

    • Buy back

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Securities Premium accounts can be used by a company for various purposes. Firstly, it can be utilized for writing off preliminary expenses, which are the costs incurred during the setup or incorporation of the company. Secondly, it can be used for writing off commission expenses, which are the fees paid to brokers or agents for their services. Lastly, securities premium accounts can also be utilized for a buyback, which is when a company repurchases its own shares from the market. Therefore, the correct answer is "All of the above."

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  • 16. 

    What are the sources for buy-back of shares?

    • Free Reserves

    • Securities Premium Account

    • Proceeds of fresh issue

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The sources for buy-back of shares include free reserves, securities premium account, and proceeds of fresh issue. Free reserves refer to the accumulated profits of a company that can be utilized for various purposes, including buying back shares. The securities premium account is created when a company issues shares at a premium, and the amount in this account can be used for buy-backs. Lastly, the proceeds from a fresh issue of shares can also be utilized for buying back shares. Therefore, all of the above options are correct sources for buy-back of shares.

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  • 17. 

    Which of the following is a characteristic feature of Negotiable Instrument?

    • Drawn for Consideration

    • Signature

    • Transferrable

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A negotiable instrument is a document that guarantees the payment of a specific amount of money to a specified person or the assignee. It has certain characteristic features, and one of them is that it must be drawn for consideration, meaning it must be created in exchange for something of value. Another characteristic feature is that it must have a signature, which is essential for authentication purposes. Lastly, a negotiable instrument must be transferrable, meaning it can be transferred from one person to another by endorsement or delivery. Therefore, "All of the above" is the correct answer as it includes all the characteristic features of a negotiable instrument.

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  • 18. 

    The Payment of Bonus Act, 1965 shall apply to:

    • Every factory

    • Establishments employing 20 or more persons

    • Establishments notified by AG

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Payment of Bonus Act, 1965 applies to all of the above options. The act is applicable to every factory, establishments employing 20 or more persons, and establishments that have been notified by the Attorney General. This means that all factories, establishments with 20 or more employees, and establishments notified by the AG are required to comply with the provisions of the Payment of Bonus Act, 1965.

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  • 19. 

    Documents required to be filed with Registrar for Incorporating a Company:

    • Affidavit from Subscribers

    • MOA and AOA

    • Address for Correspondence

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above" because when incorporating a company, all of the mentioned documents are required to be filed with the Registrar. An affidavit from subscribers is necessary to confirm their intention to become shareholders of the company. The Memorandum of Association (MOA) and Articles of Association (AOA) outline the company's objectives, rules, and regulations. An address for correspondence is needed to establish a communication channel with the company. Therefore, all of these documents are essential for the incorporation process.

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  • 20. 

    Interest on Debentures is paid even if there are no profits:

    • True

    • False

    • Cannot Say

    • None of the above

    Correct Answer
    A. True
    Explanation
    Interest on debentures is a fixed obligation that a company must pay to the debenture holders regardless of its profitability. Unlike dividends, which are paid out of profits, interest on debentures is a contractual obligation that must be fulfilled. Therefore, even if a company does not make any profits, it is still legally bound to pay interest on its debentures.

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  • 21. 

    Which of the following is treated as an Ordinary Business at a general meeting?

    • Cancellation of Share capital

    • Issue of Bonus Shares

    • Issue of Bonus Shares

    • Declaration of Dividend

    Correct Answer
    A. Declaration of Dividend
    Explanation
    Declaration of Dividend is treated as an Ordinary Business at a general meeting. This is because the declaration of dividend is a routine matter that is typically discussed and approved at regular general meetings. It involves the distribution of profits to shareholders as a form of return on their investment. Unlike the other options listed, such as cancellation of share capital or issue of bonus shares, which may require special resolutions or additional approvals, the declaration of dividend is a standard practice that is commonly addressed during general meetings.

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  • 22. 

    Under Gratuity Act, the number of days on which an employee has actually worked under an employer shall include the days on which:

    • He has been laid off

    • He has been on leave with full wages

    • Absent due to temporary disablement

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Under the Gratuity Act, the number of days on which an employee has actually worked under an employer includes the days on which the employee has been laid off, the days on which the employee has been on leave with full wages, and the days on which the employee has been absent due to temporary disablement. Therefore, the correct answer is "All of the above." This means that all of these situations are considered as days on which the employee has actually worked for the purpose of calculating gratuity.

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  • 23. 

    A Company can serve documents to its members through:

    • Post

    • Courier

    • Email

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The company can serve documents to its members through post, courier, and email. This means that the company has the option to send documents to its members using traditional mail services, through a courier service, or electronically via email. Using all of these methods provides flexibility and ensures that the company can reach its members efficiently, regardless of their preferred communication method or location.

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  • 24. 

    A company may issue fully paid-up bonus shares to its members out of

    • Its free reserves

    • The securities premium account

    • The capital redemption reserve account

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A company may issue fully paid-up bonus shares to its members out of its free reserves, the securities premium account, or the capital redemption reserve account. Free reserves are the profits that a company has accumulated over the years and are available for distribution to shareholders. The securities premium account is created when a company issues shares at a premium, which is the amount received above the face value of the shares. The capital redemption reserve account is created when a company redeems its own shares. Therefore, all of these sources can be used to issue fully paid-up bonus shares to shareholders.

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  • 25. 

    A Minute book shall be maintained for:

    • Board Meetings

    • General Meetings

    • Meetings with Creditors

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A minute book is a record of the proceedings and decisions made during various meetings. It is necessary to maintain a minute book for board meetings as it provides a detailed account of discussions, resolutions, and actions taken by the board of directors. Similarly, a minute book is also important for general meetings, such as annual general meetings, as it records the decisions made by shareholders or members. Additionally, meetings with creditors are crucial for discussing financial matters and negotiating terms, making it essential to maintain a minute book for these meetings as well. Therefore, all of the above options require a minute book to be maintained.

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  • 26. 

    Which of the following employee is not entitled to bonus?

    • A part time employee as a sweeper

    • An employee of a seasonal factory

    • A temporary workman

    • An apprentice

    Correct Answer
    A. An apprentice
    Explanation
    An apprentice is not entitled to a bonus because they are typically in a training or learning position and are not considered regular employees. Apprenticeships are often temporary and involve hands-on learning and skill development under the guidance of a more experienced worker. Therefore, they do not meet the criteria for receiving a bonus, which is usually given to regular employees as a form of additional compensation for their performance or contribution to the company.

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  • 27. 

    Under EPF Scheme, the Definition of Salary shall include:

    • Retaining Allowance

    • Dearness Allowance

    • Basic Salary

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Under the EPF Scheme, the definition of salary includes retaining allowance, dearness allowance, and basic salary. This means that all three of these components are considered as part of an employee's salary for the purpose of calculating EPF contributions.

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  • 28. 

    The Central Board of Trustee under EPF Scheme shall include:

    • 5 persons appointed by CG

    • 10 persons representing Employees

    • 10 persons representing Employers

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Central Board of Trustees under the EPF Scheme is responsible for managing and overseeing the Employees' Provident Fund. It consists of 5 persons appointed by the Central Government, 10 persons representing employees, and 10 persons representing employers. This composition ensures that the board includes representatives from all relevant stakeholders, including the government, employees, and employers, to make decisions and policies that are fair and balanced for all parties involved.

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  • 29. 

    Which of the following activity requires alteration of MOA?

    • Change of company's name

    • Shifting company's registered office to other state

    • Reduction of authorized capital

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the mentioned activities require alteration of MOA because they involve significant changes in the company's structure or operations. Changing the company's name requires amending the MOA to reflect the new name. Shifting the registered office to another state also requires alteration of the MOA as it involves changing the jurisdiction and legal framework under which the company operates. Similarly, reducing the authorized capital of the company requires amending the MOA to reflect the new capital structure. Hence, all of the above activities require alteration of MOA.

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  • 30. 

    What is the validity period of a Cheque:

    • 12 months

    • 6 months

    • 3 months

    • No such expiry date

    Correct Answer
    A. 3 months
    Explanation
    A cheque has a validity period of 3 months. This means that it can be cashed or deposited within this time frame. After the expiration of the 3-month period, the cheque becomes stale and may not be accepted by banks. This validity period is in place to ensure that cheques are processed in a timely manner and to prevent any potential fraud or misuse of outdated cheques. Therefore, it is important for individuals and businesses to cash or deposit their cheques within the specified time limit.

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  • 31. 

    The Capital which is subscribed by members of a company is called:

    • Called Up Capital

    • Subscribed Capital

    • Paid Up Capital

    • Nominal Capital

    Correct Answer
    A. Subscribed Capital
    Explanation
    Subscribed capital refers to the total amount of capital that shareholders have agreed to contribute to a company. It represents the portion of the authorized capital that shareholders have committed to buying. This capital may or may not be fully paid up, meaning that shareholders may still owe a portion of their subscribed capital to the company. The term "subscribed capital" is commonly used in company law and accounting to distinguish the amount of capital that shareholders have committed to from the amount that has actually been paid up.

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  • 32. 

    Notice of an Annual General Meeting shall be given:

    • To every member

    • Legal representative of a deceased member

    • Assignee of an insolvent member

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The notice of an Annual General Meeting should be given to every member of the organization, as well as to the legal representative of a deceased member and the assignee of an insolvent member. This ensures that all relevant parties are informed and have the opportunity to attend and participate in the meeting.

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  • 33. 

    The Payment of Bonus Act, 1965 does not apply to employees employed by:

    • Universities or Educational Institutions

    • Financial Institutions

    • Inland Water Transport

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The Payment of Bonus Act, 1965 does not apply to employees employed by universities or educational institutions, financial institutions, or inland water transport. This means that these employees are not entitled to receive bonus payments as per the provisions of this act.

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  • 34. 

    Which of the following is a type of Grapevine Communication:

    • Single Strand

    • Gossip Chain

    • Cluster Chain

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Grapevine communication refers to the informal, unofficial, and often gossip-based communication network within an organization. It is characterized by its ability to spread information quickly and across various channels. "Single Strand" refers to a type of grapevine communication where information is passed on in a linear manner from one person to another. "Gossip Chain" refers to a type of grapevine communication where information is spread through a sequence of individuals. "Cluster Chain" refers to a type of grapevine communication where information is spread through various groups or clusters of individuals. Therefore, "All of the above" is the correct answer as all three options represent different types of grapevine communication.

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  • 35. 

    A Cheque shall be dishonored on the basis of:

    • Insanity of the customer

    • Death of the customer

    • Insolvency of the customer

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A cheque can be dishonored on the basis of various reasons, including the insanity, death, or insolvency of the customer. If the customer is declared insane or passes away, they will not be able to fulfill their financial obligations, resulting in the dishonor of the cheque. Similarly, if the customer becomes insolvent, they may not have sufficient funds to cover the amount mentioned on the cheque, leading to its dishonor. Therefore, all of the mentioned reasons can result in the dishonor of a cheque.

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  • 36. 

    In case of any misstatement in prospectus, the persons liable are:

    • Promoters

    • Directors

    • Expert

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above." In the case of any misstatement in the prospectus, all three parties mentioned - promoters, directors, and experts - are liable. Promoters are responsible for preparing and issuing the prospectus, directors are responsible for ensuring its accuracy and completeness, and experts are responsible for any statements made by them in the prospectus. Therefore, if there is any misstatement in the prospectus, all three parties can be held liable.

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  • 37. 

    The offer of shares to a select group of persons by a company without the need of issue of a prospectus is called

    • Cross Offer

    • Private Placement

    • Closed Subscription

    • Exclusive Placement

    Correct Answer
    A. Private Placement
    Explanation
    Private placement refers to the offer of shares to a select group of individuals or institutions without the need for a prospectus. This method is commonly used by companies to raise capital from specific investors, such as institutional investors or high net worth individuals, without going through the process of a public offering. Private placement allows companies to raise funds quickly and efficiently, while also maintaining confidentiality and flexibility in the transaction.

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  • 38. 

    The securities premium account may be applied by the company

    • The securities premium account may be applied by the company

    • In writing off the preliminary expenses of the company

    • In providing for the premium payable on the redemption of any redeemable preference shares

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The securities premium account can be utilized by the company for various purposes. It can be used to write off the preliminary expenses incurred by the company, which are the initial costs associated with setting up the company. Additionally, it can also be used to provide for the premium that needs to be paid on the redemption of any redeemable preference shares. Therefore, the correct answer is "All of the above" as all the mentioned options are valid uses of the securities premium account.

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  • 39. 

    What is the rate of minimum bonus payable to an employee as per the Bonus Act?

    • 20%

    • 5.33%

    • 8.33%

    • 10%

    Correct Answer
    A. 8.33%
    Explanation
    The rate of minimum bonus payable to an employee as per the Bonus Act is 8.33%. This means that an employee is entitled to receive a bonus of at least 8.33% of their salary or wage earned during the accounting year. The Bonus Act ensures that employees receive a minimum bonus as a form of additional compensation for their work.

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  • 40. 

    The process of translating the message received and interpreting its meaning is called:

    • Encoding

    • Docking

    • Decoding

    • None of the above

    Correct Answer
    A. Decoding
    Explanation
    Decoding refers to the process of translating a received message and interpreting its meaning. It involves understanding the symbols or codes used in the message and extracting the intended information from them. This process is essential for effective communication as it allows the recipient to comprehend the message and respond appropriately. Encoding, on the other hand, is the process of converting information into a format suitable for transmission or storage. Docking and "None of the above" are unrelated terms and do not accurately describe the process of translating and interpreting messages.

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  • 41. 

    Which of the following payments are deductible from the amount payable as Bonus?

    • Customary Bonus

    • Puja Bonus

    • Interim Bonus

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the mentioned payments, namely Customary Bonus, Puja Bonus, and Interim Bonus, are deductible from the amount payable as Bonus. This means that these payments can be subtracted or reduced from the total Bonus amount that an individual is entitled to receive.

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  • 42. 

    Which of the following is a Material Alteration under the NI Act, 1881:

    • Filling blanks of inchoate instrument

    • Conversion of blank endorsement to full

    • Crossing of Cheque

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the options mentioned in the question are examples of material alterations under the NI Act, 1881. Filling blanks of an inchoate instrument refers to filling in missing information on a partially completed document, which can change its meaning or terms. Conversion of a blank endorsement to full means adding the name of the endorsee to a previously blank endorsement, which also alters the nature of the instrument. Crossing of a cheque involves drawing two parallel lines across the face of the cheque, which adds a degree of security and restricts the mode of its payment. Therefore, all of these actions constitute material alterations under the NI Act, 1881.

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  • 43. 

    What is the remedy for non-payment of calls or instalments of call or other sums as premiums due in respect of shares

    • Cancellation of Shares

    • Dissolution of shares

    • Charging interest

    • Forfeiture of Shares

    Correct Answer
    A. Forfeiture of Shares
    Explanation
    Forfeiture of shares is the remedy for non-payment of calls or instalments of call or other sums as premiums due in respect of shares. This means that if shareholders fail to make the required payments, their shares can be forfeited by the company. This allows the company to cancel the shares and retain any payments that have already been made by the shareholders. Forfeiture of shares is a common practice to enforce payment obligations and protect the interests of the company and its shareholders.

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  • 44. 

    In case of illegal agreements, the collateral agreements are:

    • Voidable

    • Void

    • Valid

    • None of these

    Correct Answer
    A. Void
    Explanation
    In case of illegal agreements, collateral agreements are considered void. This means that they have no legal effect and cannot be enforced by either party involved. The reason for this is that illegal agreements are against the law and therefore cannot be upheld in a court of law. As a result, any collateral agreements that are connected to an illegal agreement are also rendered void and cannot be legally binding.

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  • 45. 

    Right of lien is lost for the seller, when _____

    • Goods are delivered to the carrier

    • Buyer or his agent obtains possession of goods lawfully

    • Seller waives his right of lien

    • In all the above cases

    Correct Answer
    A. In all the above cases
    Explanation
    In all the above cases, the right of lien is lost for the seller. This means that regardless of whether the goods are delivered to the carrier, the buyer or his agent obtains possession of the goods lawfully, or the seller waives his right of lien, the seller will no longer have the right to retain possession of the goods until payment is made.

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  • 46. 

    Minimum number of members required to form a public company:

    • 2

    • 10

    • 7

    • No such limit

    Correct Answer
    A. 7
    Explanation
    The minimum number of members required to form a public company is 7. This means that at least 7 individuals need to come together to establish a public company. This requirement ensures that there is a sufficient number of people involved to make important decisions and share responsibilities in the company. Having a minimum number of members also helps ensure that there is a diverse range of perspectives and expertise within the company, which can contribute to its success.

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  • 47. 

    The Registered Office of a Company can be changed by passing:

    • Ordinary Resolution

    • Special Resolution

    • Board Resolution

    • Unanimous Resolution

    Correct Answer
    A. Special Resolution
    Explanation
    The Registered Office of a Company can be changed by passing a Special Resolution. A Special Resolution is a resolution that requires the approval of a specified majority of shareholders, usually at least 75% or more. Changing the registered office is a significant decision that can impact the company's legal and administrative matters, so it requires a higher level of approval than an Ordinary Resolution or a Board Resolution. A Unanimous Resolution would require the approval of all shareholders, which may not be practical or necessary for changing the registered office.

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  • 48. 

    Company's Share Premium account cannot be utilized towards

    • Writing of preliminary expenses

    • Writing off Commission

    • Buy back

    • Writing off Depreciation

    Correct Answer
    A. Writing off Depreciation
    Explanation
    The Share Premium account is a reserve created when a company issues shares at a premium, which is the amount received above the face value of the shares. This reserve cannot be utilized for writing off depreciation because depreciation is a non-cash expense that represents the decrease in value of an asset over time. It is not directly related to the issuance of shares or the premium received. Therefore, the Share Premium account cannot be used to cover depreciation expenses.

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  • 49. 

    The Provisions of 'Small Company' shall not apply to:

    • A Holding or Subsidiary Company

    • A company registered under Section 8

    • Company formed under a special act

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The provisions of 'Small Company' shall not apply to a Holding or Subsidiary Company, a company registered under Section 8, and a company formed under a special act. This means that these types of companies are not eligible to avail the benefits and exemptions provided to small companies under the relevant laws and regulations.

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Quiz Review Timeline (Updated): Mar 20, 2023 +

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 26, 2016
    Quiz Created by
    Pratapklug

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