Business Law (MCQs) Set-1

Q.1. On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now limited to:

1. 200
2. 50
3. 150
4. 0

Answer: (B) 50

Q.2. Doctrine of Ultra virus has reference to ……….. clause

1. Object
2. Subscription
3. Liability
4. None of these

Answer: (A) Object

Q.3. …….. are subordinate to and controlled by the memorandum.

1. Articles of Association
2. Prospectus
3. Statement in law
4. All of the above

Answer: (A) Articles of Association

Q.4. The idea of carrying on a business is conceived by a person by a group of persons called ………..

1. Exploits
2. Promoters
3. Directors
4. None of these

Answer: (B) Promoters

Q.5. The company shall give notice of alteration to the Register within ……… of passing the resolution

1. 3 months
2. 6 months
3. 30 days
4. 60 days

Answer: (C) 30 days

Q.6. The association that are not registered under sec. II of the companies act is ………..

1. Incorporated Association
2. Illegal Association
3. Non Licensed Association
4. Unregistered Association

Answer: (B) Illegal Association

Q.7. Statutory companies are also known as ……….

1. State legislative
2. Company
3. Corporation
4. None of the above

Answer: (C) Corporation

Q.8. ……….. is the construction of a company

1. Promotion
2. Certificate of incorporation
3. Memorandum
4. Documents

Answer: (C) Memorandum

Q.9. A public company having a share capital, becomes entitled to commence business only after obtaining a further certificate known as a ………..

1. Company formation
2. Certificate of incorporation
3. Provisional contracts
4. Certificate of commence business

Answer: (D) Certificate of commence business

Q.10. ……….. is subordinate to and controlled by the memorandum of association

1. Prospectus
2. Statement in lieu
3. Articles of association
4. None of the above

Answer: (C) Articles of association