Multiple Choice Question on Law and Ethics

• The following is the disadvantage of business ethics:
  • Through increasing morale and trust business can increase their market share
  • Publicity due to well and ethical performance
  • Acceptance of products of the company by the public
  • Diversity in achievements

• A proposal may be revoked at any time before
  • the communication of acceptance
  • the payment of consideration
  • signing the agreement
  • execution of the proposal

• Which of the following is not to be taken care while admitting a new partner?
  • Computation of newprofit sharing ratio and sacrifice ratio
  • Accounting treatment of goodwill
  • Professional qualification of admitting partner
  • Revaluation of assets and liabilities

• Where goods are delivered to the buyer and he refuses to accept them, the buyer is not bound to
  • retain them with him.
  • look-after the goods.
  • return them to the seller.
  • store them in his godown.

• No child shall be allowed to work in a factory unless he has completed his
  • 12th year
  • 14th year
  • 16th year
  • 18th year

• Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than
  • three years
  • five years
  • seven years
  • ten years

• The Employees’ State Insurance Corporation is
  • Hindu Undivided Family
  • Local Authority
  • Charitable Institution
  • Body Corporate

• The annual return of an OPC shall be signed by the company secretary or where there is no company secretary, by the
  • Senior executive of the company
  • Auditor of the company
  • Director of the company
  • Advocate of the company

• If there is any mis-statement in the prospectus then it would attract the liability on
  • The printer
  • The issuer
  • The publisher
  • The proof-reader

• Every company limited by shares shall keep and maintain the Register of Members in Form No.
  • MGT-1
  • MGT-3
  • MGT-7
  • MGT-12

• Ethics are the set of moral principles that guide a person’s
  • Behaviour
  • Philosophy
  • Religion
  • Profession

• Anu threaten to kidnap Binu’s daughter if she does not sell her house worth ` 90 Lakh to her for ` 20 Lakh. This Contract is void due to —
  • inadequacy of Consideration
  • absence of Free Consent
  • incompetence of Parties
  • None of the above

• The Latin Maxim “Nemo Dat Quod non Habet” means
  • no man can pass a better title than he has
  • let the Buyer beware
  • no consideration – No contract
  • ignorance of law is no excuse

• As per the RBI Act, which of the following negotiable Instruments can be payable to the bearer on demand?
  • Cheque
  • Hundi
  • Bank Draft
  • Promissory Note

• When a partnership firm is continued even after the expiry of fixed term, it is called
  • Partnership at Will
  • Perpetual Partnership
  • Fixed Partnership
  • Particular Partnership

• The amount of gratuity payable to an employee shall not exceed
  • Ten months’ pay
  • Twelve months’ pay
  • Twenty months’ pay
  • Twenty-five months’ pay

• In case of a private company, mention the number of members personally present to form the quorum of a meeting of the company.
  • One member
  • Two members
  • Three members
  • Four members

• Which of the following is not a valid medium of sending notice to all shareholders?
  • By registered post or speed post
  • Through public advertisement
  • Through registered email-id
  • Through courier service

• If any default is made in filing refund of money, the company and every officer, who is in default shall be liable to a penalty maximum up to
  • 50,000
  • 75,000
  • 1,00,000
  • 1,25,000

• Value chain as a strategic framework for analysis of competitive advantage was promoted by
  • Peter Drucker
  • F. W. Taylor
  • Michael Porter
  • Tom Peters

• A person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it, he is capable of
  • listening it
  • hearing it
  • understanding it
  • interpreting it

• Ankit agrees to pay Bina ₹1500 if it rains today, otherwise Bina pays Ankit ` 2000. This is a
  • Gambling
  • Wagering agreement
  • Valid agreement
  • Speculation

• Writing of a person’s name on the face or back of an instrument or on a slip of paper attached to it is known as
  • Endorsement
  • Transfer
  • Negotiation
  • Transmission

• Anusua and Shrita formed a partnership to undertake a construction of a shopping complex in New Delhi. This partnership is called
  • Partnership at will
  • Particular partnership
  • Unlimited partnership
  • Partnership with undefined mission

• As per the Minimum Wages Act 1948, Adolescent means a person who has completed the age of 14 years but not completed the age of
  • 15
  • 14
  • 21
  • 18

• Every employee shall be entitled to receive bonus from his employer in
  • a financial year
  • an accounting year
  • a calendar year
  • a manufacturing year

• The annual return of an OPC shall be signed by
  • the company secretary
  • the director
  • the chief accountant
  • the auditor

• The minimum age limit for appointment of managing director and the wholetime director is
  • 18 years
  • 21 years
  • 25 years
  • 30 years

• A company cannot remove a director appointed
  • at the annual general meeting
  • at the extra ordinary general meeting
  • by the promoter
  • by the tribunal

• Moral management requires ethical
  • producer
  • leadership
  • market
  • customer

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