Question 1

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

Accepted Answer

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

Question 2

Features of Negotiable instruments are -

Accepted Answer

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

Question 3

Holder in due course means any person-

Accepted Answer

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 B

Question 4

Quorum for general meeting for private and public companies.

Accepted Answer

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

Question 5

Which of the following is not a negotiable instrument

Accepted Answer

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

Question 6

What do you mean by symbolic possession ?

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

A Bill of exchange contains -

Accepted Answer

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

Question 9

Who can endorse the negotiable

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

The registered office clause of memorandum of association contains

Accepted Answer

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 14

Memorandum of Association does not include.

Accepted Answer

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

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