Question 1

When an endorser willing to transfer to an endorsee only a part of the amount of the instrument, then it is which type of endorsement?

Accepted Answer

A)  Restrictive endorsement
B)  Conditional endorsement
C)  Special endorsement
D)  Partial endorsement D

Question 2

Maximum number of members in case of public company is:

Accepted Answer

A)  50
B)  100
C)  Unlimited
D)  200 C

Question 3

Cheque is a

Accepted Answer

A)  Promissory note
B)  Bill of exchange
C)  Both (a)  and (b)  above
D)  None of the above. B

Question 4

Which company shares can be freely transferable?

Accepted Answer

A)  Private company
B)  Public company
C)  Both a & b
D)  None of the above

Question 5

If an instrument may be construed either as a promissory note or bill of exchange, it is

Accepted Answer

A)  A valid instrument
B)  An ambiguous instrument
C)  A returnable instrument
D)  None of the above.

Question 6

The liability of members if company is limited by guarantee.

Accepted Answer

A)  Unpaid value of shares
B)  Guarantee amount
C)  Unlimited liability
D)  None of the above

Question 7

The liability of members if company is limited by shares

Accepted Answer

A)  Unpaid value of shares
B)  Guarantee amount
C)  Unlimited liability
D)  None of the above

Question 8

The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to

Accepted Answer

A)  The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof
B)  The payment by a bank on a negotiable instrument after due verification of the instrument
C)  The bargaining between the parties to a negotiable instrument
D)  All of the above.

Question 9

A bill of exchange contains a/an

Accepted Answer

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

Question 10

Ultra vires means

Accepted Answer

A)  Beyond the powers
B)  Within the powers
C)  Both
D)  None of the above

Question 11

The undertaking contained in a promissory note, to pay a certain sum of money is

Accepted Answer

A)  Conditional
B)  Unconditional
C)  May be conditional or unconditional depending upon the circumstances
D)  None of the above.

Question 12

The Right of Lien is exercised:

Accepted Answer

A)  To retain the possession of goods
B)  To regain the possession of goods
C)  To resell the goods
D)  To transfer the goods

Question 13

Where an unpaid seller has made part delivery of the goods he may exercise his Right of _______

Accepted Answer

A)  Return of remaining goods
B)  Lien on the remaining goods
C)  Sale to any other person
D)  None of above

Question 14

Total managerial remuneration cannot exceed ____% of net profit

Accepted Answer

A)  11
B)  12
C)  13
D)  14

Question 15

Quorum should be present at the

Accepted Answer

A)  Commencement of meeting
B)  Middle of the meeting
C)  End of the meeting
D)  Any time during meeting.

Question 16

According section 5(2) subject to provision of any law for the time being in force a contract of sale may be

Accepted Answer

A)  Made in writing
B)  By words of mouth
C)  Partly in writing or partly in words of mouth
D)  All above ways

Question 17

A stipulation in contract of sale with reference to goods which are the subject there of may be

Accepted Answer

A)  A condition
B)  A warranty
C)  Both (a)  and (b) 
D)  None of above

Question 18

AOA is a

Accepted Answer

A)  Public document
B)  Managerial document
C)  Private document
D)  Internal document

Question 19

When a private company is converted into public company. In which form it should be

Accepted Answer

A)  Schedule III
B)  Schedule IV
C)  Schedule VI
D)  None of these

Question 20

In the MOA there are 7 clauses. We can alter all clauses expect one clause. What is that clause?

Accepted Answer

A)  Objects clause
B)  Name clause
C)  Association clause
D)  None of these

Exam 6: Corporate Law