Deck 2: Negotiable Instruments, Company Law, and Legal Terminologies

Question 1

Which of the following is not a negotiable instrument

A)Bill of exchange and cheque
B)Postal Order & Currency note
C)Promissory note and cheque
D)Promissory note & Bill of exchange

Answer 1

Postal Order & Currency note

Question 2

Features of Negotiable instruments are -

A)Written and signed
B)Recovery
C)Freely transferable
D)All of the above

Answer 2

All of the above

Question 3

Holder in due course means any person-

A)Drawing the instrument
B)who for consideration became the possession of promissory note
C)to whom order the money is directed to paid
D)none of the Above

Answer 3

who for consideration became the possession of promissory note

Question 4

Cheque can be of types and crossing of cheques can be of types.

A)three, two
B)two, two
C)two, three
D)three, three

Question 5

What are the limits of number of members in a Private Company?

A)Fifty
B)Seven
C)Twenty
D)Two hundred

Question 6

A public company must have at least----- directors whereas a private company must have at least -------

A)3;2
B)23
C)25
D)810

Question 7

The registered office clause of memorandum of association contains

A)The name of the state in which the registered office of the company is to
B)The name of the city/town only and not that of the state.
C)The name of registrar of companies
D)The complete postal address.

Question 8

Which documents contains the regulations relating to the internal management of a

A)Memorandum of Association
B)Articles of Association
C)Both (a) and (b)
D)None

Question 9

………….meeting is the first meeting of the members of the public company after

A)board
B)annual general
C)departmental
D)statutory

Question 10

Who can endorse the negotiable

A)Maker of the
B)older of the
C)Drawee
D)Both of A and B

Question 11

A Bill of exchange contains -

A)Conditional undertaking
B)Unconditional undertaking
C)Unconditional order
D)Conditional order

Question 12

Memorandum of Association does not include.

A)Subscription Clause.
B)Capital Clause.
C)Liability Clause.
D)Assets Clause.

Question 13

Quorum for general meeting for private and public companies.

A)2 and 5.
B)3 and 6.
C)5 and 7.
D)None of these.

Question 14

What do you mean by symbolic possession ?

A)Delivery of keys of lock of godown where the goods
B)Conditional promise to delivery.
C)Actual Delivery.
D)None of these