Business Law 1

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