LAW AND ETHICS MCQ 7

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Multiple Choice Question on Law and Ethics

  • In the absence of Partnership agreement, the Partner has
    • right to avail interest on advances paid to partnership firm.
    • right to avail interest on advances paid to partnership firm provided there is profit.
    • no right to avail interest on advances.
    • right to avail interest on advances even after dissolution of the firm.
  • A person who is employed by the seller to raise the price by fictitious bids. Such person is known as
    • Puffer
    • By bidder
    • Decoy Ducks
    • All of the above
  • In case of banker’s refusal to honour the cheque inspite of sufficient funds in customer’s account, the banker is
    • liable to compensate the drawer.
    • not liable to compensate the drawer .
    • criminally liable under section 138.
    • liable to be delisted.
  • Dependants benefit is paid at the rate of
    • 60% of wages in the form of monthly payment.
    • 75% of wages in the form of monthly payment.
    • 80% of wages in the form of monthly payment.
    • 90% of wages in the form of monthly payment.
  • Board of Directors of every listed Company shall constitute an Audit Committee which shall consists of a minimum of
    • 2 Directors
    • 3 Directors
    • 4 Directors
    • 5 Directors
  • The maximum limit of bonus payable to an employee is fixed by way of percentage of salary or wages earned by the employee during the accounting year, the percentage is:
    • 10%
    • 15%
    • 20%
    • 25%
  • Business Ethics also called as Corporate Ethics is a form of
    • Positive Ethics
    • Applied Ethics
    • Physical Ethics
    • Practical Ethics
  • An agreement which is enforceable at the option of one or more parties thereto but not at the option of other or others is called
    • Void contract.
    • Voidable contract.
    • Void agreement.
    • Unenforceable contract.
  • Which of the following agency is irrevocable under The Indian Contract Act, 1872?
    • Agency for fixed period
    • Agency for single transaction
    • Agency coupled with interest
    • Continuing agency
  • A sort of tacit understanding/agreement among the intending bidders to stifle competition by not bidding against each other in an auction sale is called as
    • Damping
    • Knock-out agreement
    • Puffers
    • By-bidders
  • When an instrument is drawn conditionally or for a special purpose as a collateral security and not for the purpose of transferring property therein, it is called
    • Ambiguous
    • Inchoate
    • Escrow
    • Inland
  • Which Committee is constituted by the occupier to promote cooperation between the workers and management in maintaining proper safety and health at workplace?
    • Safety Committee
    • Health Committee
    • Management Workers Consultative Committee
    • Maintenance Committee
  • Under Payment of Bonus Act, 1965, in disputed cases, bonus must be paid
    • Within 8 months from the close of the accounting year.
    • Within 1 month from the date on which the award becomes enforceable.
    • Within 2 months from the date on which the award becomes enforceable.
    • Within 6 months from the date of closing of the accounting year.
  • Businessmen or industrialists take initiative to form new companies. Their main function is to manage the company after its promotion, they are known as
    • Particular Promoters
    • Occasional Promoters
    • Professional Promoters
    • General Promoters
  • The study of ethics can be divided into four operational areas namely meta ethics, normative ethics, descriptive ethics and
    • Positive ethics
    • Physical ethics
    • Applied ethics
    • Natural ethics
  • In social agreements usual presumption is
    • that parties do not intend to create social relations.
    • that parties intend to perform them.
    • that parties do not intend to make legal and social relations.
    • that the parties do not intend to create legal relations between them.
  • In a sale of goods, the doctrine of caveat emptor will not apply when there is
    • usage of trade
    • consent by fraud
    • buyers’ error of judgment
    • Merchantable Quality
  • A bill of exchange, that is drawn accepted or endorsed without consideration is called
    • Accommodation bill
    • Promissory note
    • Trade bill
    • Bearer instrument
  • Under Industrial Disputes Act, Appropriate Government may require to constitute a workman committee on any day in the preceding 12 months, where an industrial establishment employs
    • 250 or more workers
    • 100 or more workers
    • 500 or more workers
    • 200 or more workers
  • Employee’s State Insurance Act, 1948 is applicable to all
    • factories including factories belonging to Government and seasonal factories.
    • factories excluding seasonal factories.
    • factories including factories belonging to Government and seasonal but excluding Silk factory.
    • factories including factories belonging to Government but excluding seasonal factories.
  • A partner must give a public notice of his retirement from the firm in order absolve himself from the liability for the acts of the other partners done after his retirement is known as
    • Dormant partner
    • Ostensible partner
    • Nominal partner
    • Partner by estoppel
  • A prospectus which does not have complete particulars on the price of securities offered and the quantum of securities offered by the company is known as
    • Statement in lieu of prospectus
    • Red-herring prospectus
    • Deemed prospectus
    • Shelf prospectus
  • The crucial step in understanding business ethics is
    • Establishing codes of ethics
    • Learning to recognize ethical issues
    • Having efficient operations
    • Implementing strategic plan
  • Which of the following reason is applicable for unethical business practices?
    • Workplace Surveillance
    • Profit making by some of the big companies
    • Success of the company
    • Administrative corruption
  • A party who does not suffer any loss in case of breach of contract is entitled to
    • Statutory damages
    • Liquidated damages
    • Exemplary damages
    • Nominal damages
  • If part of contract is illegal, then the whole contract will be
    • Voidable
    • Void
    • Legal
    • Illegal

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