LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Partners are jointly and severally liable for the debts of partnership business
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question A person employed to do any act for another, or to represent another in dealings with third persons is
Correct Answer Agent
Your Answer Agent

Multiple Choice Single Answer

Question In case of a public limited company, minimum number of members is
Correct Answer seven
Your Answer seven

Select The Blank

Question ________ is an invitation made to the ________
Correct Answer Prospectus
Your Answer Prospectus
Correct Answer public
Your Answer public

True/False
Question To establish a contract the parties must agree to the same thing in the same sense.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question A company must have a
Correct Answer specific name which must be registered.
Your Answer specific name which must be registered.

Multiple Choice Multiple Answer

Question Specific performance is granted where
Correct Answer damages are insufficient remedy for breach , contract is irrevocable in nature , contract is certain
Your Answer damages are insufficient remedy for breach , contract is irrevocable in nature , the contract is entered
into by trustees in breach of their trust.

Select The Blank

Question ________ is the document issued to ________ share capital by inviting the public to subscribe to its
shares and debentures
Correct Answer Prospectus
Your Answer Prospectus
Correct Answer raise
Your Answer raise
Multiple Choice Multiple Answer
Question Prospectus
Correct Answer is a document necessary to raise the share capital , is an invitation to raise the capital made to
public
Your Answer is a document necessary to raise the share capital , is an invitation to raise the capital made to public ,
is an invitation to transfer shares

Multiple Choice Single Answer

Question Meaning of the term, Rescission of the contract is
Correct Answer Cancellation of the contract
Your Answer Change in one or more condition of the contract by mutual consent of the parties to the contract

Select The Blank

Question Where a ________ promise is made to pay either cash or money’s worth for an uncertain event, it is
known as ________ contract
Correct Answer conditional
Your Answer conditional
Correct Answer Wagering
Your Answer Wagering

Multiple Choice Multiple Answer

Question The three in the performance of a contract of sale by the seller are
Correct Answer transfer of property in goods , the passing of the risk , delivery of goods
Your Answer transfer of property in goods , the passing of the risk , delivery of goods

Multiple Choice Multiple Answer

Question Following are the elements which constitute a partnership
Correct Answer there must be a contract regarding a partnership , there must be an association of two or more
persons
Your Answer there must be a contract regarding a partnership , the main object of carry on the business must be
sharing of liabilities , there must be an association of two or more persons

Multiple Choice Single Answer

Question If a complaint requires analysis or testing of commodities, the national commission shall decide the
complaint as far as possible within a period of
Correct Answer five months from the date of notice received by the opposite party
Your Answer three months from the date of notice received by the opposite party

Multiple Choice Single Answer

Question The companies which do not require to have Memorandum of Association
Correct Answer statutory
Your Answer subsidiary

Multiple Choice Multiple Answer

Question In special agency
Correct Answer agency lasts for a specific period , agency lasts for a particular type of job or work , agent has
unlimited authority
Your Answer agency lasts for a specific period , agency lasts for a particular type of job or work
Select The Blank
Question ________ capital is the ________ value of the shares which is offered to the public for subscription
Correct Answer Issued
Your Answer Issued
Correct Answer nominal
Your Answer nominal

Select The Blank

Question ________ capital is the part of ________ capital which is actually subscribed by the public
Correct Answer Subscribed
Your Answer Subscribed
Correct Answer issued
Your Answer issued

Select The Blank

Question Promises, which form the ________ or part of the consideration for each other, are called ________
promises
Correct Answer consideration
Your Answer consideration
Correct Answer Reciprocal
Your Answer Reciprocal

True/False
Question Issued capital is always less than the authorised capital or it can be equal to it.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question In the absence of usage or custom of trade to the contrary, the implied authority of a partner does not
empower him to
Correct Answer acquire movable property on behalf of the firm , transfer movable property belonging to the firm
Your Answer admit any liability in a suit or proceedings against the firm , withdraw a suit or proceeding filed on
behalf of the firm

True/False
Question Apparent authority and ostensible authority have different meanings
Correct Answer False
Your Answer False

Select The Blank

Question The agency can be ________ At any time by ________ agreement between the principal and his agent.
Correct Answer terminated
Your Answer terminated
Correct Answer mutual
Your Answer mutual

Multiple Choice Multiple Answer

Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to carry on the business
Your Answer minors , insolvents , co-owners without the agreement to carry on the business
Select The Blank
Question As per Sec. 2 (1) (O) of the Consumer Protection Act, Service means service of any ________ Which is
made available to ________ Users.
Correct Answer description
Your Answer description
Correct Answer potential
Your Answer potential

Select The Blank

Question Under ________ the ________ party may hold a Undue Influence authority over the other party.
Correct Answer Undue Influence
Your Answer Undue Influence
Correct Answer dominant
Your Answer dominant

Multiple Choice Single Answer

Question Shares of the company are
Correct Answer freely transferable
Your Answer not freely transferable

Multiple Choice Multiple Answer

Question Every officer of a company who is in default of issuing a duplicate or renewing a share certificate with
malafide intention shall be punishable with
Correct Answer imprisonment for a term which may extend to six months , with fine which may extend to one
lakhs rupees
Your Answer imprisonment for a term which may extend to six months , imprisonment for a term which may
extend to one year , with fine which may extend to one lakhs rupees

Multiple Choice Multiple Answer

Question Amendments made in the Consumer Protection Act in 2002: inclusion of services availed for commercial
purposes from the purview of the consumer dispute redressal agencies
Correct Answer Provision for substitution of legal heir or representative as a party to the complainant in the event
of the death of the opposite party , Provision for recovery of amounts ordered to be paid by consumer redressal
agencies as arrears of land revenue , Provision for charging of fee in respect of complaints filed before the consumer
redressal agencies
Your Answer Provision for substitution of legal heir or representative as a party to the complainant in the event of
the death of the opposite party, Provision for recovery of amounts ordered to be paid by consumer redressal agencies
as arrears of land revenue, Provision for charging of fee in respect of complaints filed before the consumer redressal
agencies

Match The Following

Question Correct Answer Your Answer

Essential of valid ratification Existence of Principal Existence of Principal

Agent appointed for a particular work Special Agent Special Agent

Entrusting of other’s property Agency by necessity Agency by necessity

Ratification to be done Of the whole of the act Of the whole of the act

Ratification Tantamount to prior authority Tantamount to prior authority

True/False
Question The liability of the members is usually limited to the face value of the shares held by them.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question partnership which can be dissolved by filing a suit is
Correct Answer registered partnership
Your Answer registered partnership

Multiple Choice Single Answer

Question In case of a public limited company, maximum number of members is
Correct Answer Unlimited
Your Answer Unlimited

Multiple Choice Multiple Answer

Question Person who authorised the issue of prospectus with untrue statement is punishable with the
Correct Answer imprisonment of term which may extend to two years , fine which may extend to Rs. 50,000/-
Your Answer imprisonment of term which may extend to two years , fine which may extend to Rs. 50,000/-

True/False
Question A person who is beneficiary of services but availing them without the consent of the person who has
hired the same for the consideration is a consumer
Correct Answer False
Your Answer False

True/False
Question Sections 1 to 75 of the Indian Contract Act, 1872 provides for the special contracts.
Correct Answer False
Your Answer False

Match The Following

Question Correct Answer Your Answer
An authority given by words, spoken or Authority express Authority
written express

Agency by Estoppel, Agency by Holding- categories of implied agency categories of implied agency
out and Agency by Necessity

Any person who is of the age of majority Appointment of Agent Appointment of Agent
according to the law to which he is subject, and
who is of sound mind, may employ an agent

relationship between the principal and Fiduciary Fiduciary

the agent

express or implied agreements, operation creation of an agency creation of an agency

of law and ratification
 Multiple Choice Multiple Answer
Question A Contract is discharged by supervening impossibility in following cases
Correct Answer non existence of a particular state of things , non existence of a particular state of things , Out-
break of war
Your Answer non existence of a particular state of things , complete loss of evidence , Out-break of war

Multiple Choice Multiple Answer

Question The corporate veil may be lifted in the following instances
Correct Answer to investigate the mismanagement of the company , to investigate whether the company is sham
Your Answer To inspect the regular accounts of the company , to investigate the mismanagement of the company ,
to investigate whether the company is sham

Multiple Choice Multiple Answer

Question The particular partnership automatically comes to an end
Correct Answer on the completion of the venture , at the expiry of the fixed term
Your Answer on the completion of the venture , at the expiry of the fixed term

Multiple Choice Single Answer

Question Specific offers
Correct Answer An offer made to a definite person or definite class of persons.
Your Answer offer based on specific or special terms

Multiple Choice Multiple Answer

Question To turn an agreement into contract the consideration
Correct Answer should be legal , should be lawful , should be law abiding
Your Answer should be legal , should be lawful , should be law abiding

True/False
Question A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to
a right to treat the contract as repudiated
Correct Answer True
Your Answer True

True/False
Question A company can be registered with guaranteed liability.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question A per Indian Partnership Act,a partnership
Correct Answer is not a legal person
Your Answer should be a legal person

True/False
Question The profit sharing ratio, if equal, need not be included in a partnership deed.
Correct Answer True
Your Answer False

Multiple Choice Single Answer

Question When one or both the parties to the contract do not perform their obligations fully and something remains
to be done, such contracts are called
Correct Answer Executory
Your Answer Executory