T.Y B.COM
SEMESTER - 6
BUSINESS LAW
MCQS
1. As per the Companies Act, which of the following are the sources of the dividend?
A) Current years Profit of the Company
B) Undistributed or Accumulated Profits of the previous years.
C) Free Reserves
D) All of the above
2. As per the Companies Act, 2013, declaration of dividends can be declared out of surplus reserves on which of the following conditions ?
A) The amount of declared dividend can’t be more than that of an average rate of dividends which was declared in past 2 years.
B) The amount drawn from the reserves shall not exceed the amount which is equal to 1/10th of the sum paid up capital and free reserves.
C) The remaining balance of the reserve shall not fall below 20% of the paid up capital.
D) B and C
3. Appointment of 1st Auditor in case of government company is made within ______ days from the date of registration ?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
4. The amount in the Unpaid Dividend Account of companies can be transferred to the Fund Investor Education and Protection Fund if it remains unpaid or unclaimed for a period of _____ years?
A) 4
B) 5
C) 6
D) 7
5. What is the procedure for removal of an auditor before the expiry of the term?
A) An ordinary resolution by the board of Directors of the Company.
B) An ordinary resolution by the Shareholders of the Company.
C) Special resolution with the approval by the Central Government.
D) An ordinary resolution by SEBI.
6. According to provisions of Companies Act, 2013 an individual auditor cannot be appointed for more than ____ consecutive years?
A) 4
B) 5
C) 6
D) 7
7. Which of the following is responsible for prescribing the standards of auditing according to Section 143(10) of Companies Act?
A) Central Government
B) National Financial Reporting Authority
C) Institute of chartered Accountants of India
D) B and C
8. Which of the following situations is considered as the casual vacancy in case of the post of an auditor?
A) Vacancy caused by Death
B) Vacancy caused by Disqualification
C) Vacancy caused by expiry of term
D) A and B
9. Section 62 ,Companies Act 2013 mentions about further issue of share capital is applicable to which of the following companies?(1 M)
A) Private Companies.
B) Public Companies.
C) Listed Companies.
D) All of the above
10. Which of the following section of Companies Act,2013 deals with bonus shares ?
A) Section 45
B) Section 52
C) Section 59
D) Section 63
11. Bonus shares shall be issued from which of the following reserves?
A) Capitalizing reserves created by revaluation of assets.
B) Capital Redemption Reserve Account
C) Free Reserves
D) B and C
12. Buyback means repurchase by a company of its own shares. Which of the following is correct with respect to buy back shares?
A) It is exercised to increase the number of shares of a company.
B) It eliminates the threats from shareholders who may be looking for a controlling stake.
C) A company cannot buy back its equity shares.
D) A and B
13. Which of the following are incorrect with respect to debentures?
A) A company may issue debentures with an option to be converted into shares wholly or partly.
B) It can be issued with or without voting rights.
C) A company cannot issue debentures to more than 500 people without appointing a debenture trustee.
D) A and C
14. The power to look into issues of capital reduction of a company vests with which of the following organization?
A) High courts and appeal with Supreme court
B) Supreme Court
C) NCLT
D) SEBI
15. As per Companies Act 2013, what is maximum tenure of preference shares except for infrastructure projects?
A) 20 years
B) 15 years
C) 10 years
D) 5 years
16. Declaration of Dividend is mentioned in which of the following Sections of Company Act 2013?
A) Section 120
B) Section 121
C) Section 122
D) Section 123
17. Which among the following is correct with respect to Interim Dividend?
A) It is declared during Annual General Meeting.
B) It is recommended by the Directors and approved by the Share Holders.
C) An interim dividend is typically one of two dividends given out by a company that is providing shareholders with income on a semi-annual basis.
D) B and C
18. Preference shareholders have the right to vote in which of the following cases?
A) On every resolution of the company.
B) Resolutions which affect their rights.
C) Resolution for winding up of the company.
D) B and C
19. According to Section 48 of Companies Act,2013, the rights attached to the shares of any class can be varied with the consent of _______ of the shareholders of that class?
A) 1/3
B) 1/2
C) 1/4
D) 3/4
20. Company can issue shares at premium under which of the following sections of CompaniesAct,2013?
A) Section 50
B) Section 49.
C) Section 51.
D) Section 52.
21. Sweat Equity Shares can be issued to which of the following employees?
A) A permanent employee of the company who is working in India.
B) A permanent employee of the company who is working outside India.
C) A director of the company working in the subsidiary of the holding company.
D) All of the above.
22. In case of a unlisted startup company, the sweat equity share should not increase more than _________ of paid up capital up to 5 years from the date of incorporation?
A) 30%
B) 35%
C) 40%
D) 50%
23. CRR is mentioned in Companies Act 2013, What does CRR stand for?
A) Current Redemption Reserve.
B) Cash Reserve Ratio
C) Capital Redemption Reserve
D) Cash Redeemable Reserve
24. Which section of companies act mentions about the transfer and transmission of shares?
A) Section 52
B) Section 53
C) Section 54
D) Section 56
25. Which of the following is the new category of company introduced in Companies Act 2013?
A) Public Private Partnership
B) Two Person Company
C) Limited Liability Partnership
D) One Person Company
26. Which among the following is type of share issued to existing shareholders to increase its subscribed share capital?
A) Bonus Shares
B) ESOP
C) Right Issue
D) Preference Shares
27. Which of the following alterations of share capital requires the approval of NCLT(National Company Law Tribunal)?
A) Increase of authorized share capital.
B) Consolidation & division all or any share capital which results in increase in voting percentage of shareholders.
C) Conversion of all or any of the fully paid-up shares into stock.
D) Cancellation of shares.
28. Which of the following is correct with respect to Shelf Prospectus?
A) It does not need a separate prospectus for each offering.
B) It is a prospectus that lacks complete particulars about the quantum or price of the securities.
C) The validity period of the shelf prospectus cannot exceed more than 2 years.
D) None of the above
29. Which of the following section in the Companies Act, 2013 mentions about Red Herring Prospectus?
A) Section 30
B) Section 31
C) Section 32
D) Section 33
30. According to Section 29, Demat (Dematerialized form) is compulsory for which of the following?
A) Companies going for public offer.
B) Companies going for private placement.
C) Prescribed unlisted companies.
D) A and C
31. Global depository receipt is mentioned in which of the following sections of Companies Act, 2013?
A) Section 38
B) Section 39
C) Section 40
D) Section 41
32. Which of the following are correct with respect to Private Placement.?
1. It is mentioned in Section 40 of Companies Act ,2013
2. Maximum limit for the private placement in a financial year cannot exceed 200.
3. Private placement must be made within 60 days.
A) 1 and 2
B) 2 and 3
C) 1 and 3
D) 3 only
33. Which of the following legislations regulate the public issue in India?
A) Companies Act 2013
B) Securities (Contract) Regulation Act, 1952
C) Securities and Exchange Board of India,1992
D) All of the above
34. Which of the following cases will be acted upon based on Section 38, Companies Act, 2013?
A) A person fraudulently inducing persons to invest money in securities.
B) A person making an application in a fictitious name.
C) Mis-Statements in the prospectus.
D) A and C
35. Variation of the terms of contract or objects in prospectus is mentioned in which of the following sections of Companies Act,2013?
A) Section 27
B) Section 25
C) Section 29
D) Section 32
36. According to Section 43 of Companies Act, 2013, How many types of share capital exists?
A) 2
B) 3
C) 4
D) 5
37. Which of the following Section of the Companies Act, 2013 mentions about the voting rights of the members?
A) Section 47
B) Section 45
C) Section 46
D) Section 49
38. Which of the following is incorrect with respect to shares with differential rights?
A) They are a issued as a part of preferential shares.
B) Companies (share capital and debenture) rules 2014, mention the condition for issue of shares with differential voting rights.
C) It cannot exceed 26% of the total post issue paid up capital.
D) A and C
39. According to Section 23 of Companies Act, 2013, in how may ways can a public company raise funding?(1M)
A) Through Public Offering
B) Through Private placement
C) Through existing shareholders
D) All of the above
40. Power of securities and exchange board to regulate issue and transfer of securities is dealt under which of the following section of Companies Act, 2013?
A) Section 24
B) Section 25
C) Section 26
D) Section 27
T.Y B.COM
SEMESTER - 6
BUSINESS LAW - II
MCQS - UNIT 3
COMPANY LAW
1. What are the limits of number of members in a Private Company ?
A. Fifty
B. Seven
C. Twenty
D. Two hundred
2. If XYZ is the holding company of P&R Ltd. then, which of the following statement is not true in this regard.
A. XYZ Ltd. controls the composition of Board of P&R
B. XYZ Ltd. holds more than 50% of the nominal value of the equity shares
C. Both (a) & (b)
D. None of the above
3. Which of the following is not a stage of the development of company?
A. Promotion
B. Incorporation
C. Commencement of Business
D. Production
4. Which of the following company / companies are registered by the Companies Act, 2013?
A. Government Company
B. Private Company
C. Public Company
D. All of the above
5. A public company must have at least _______ directors where as a private company must have at least ________ directors.
A. 3:2
B. 2:3
C. 2:5
D. 8
6. A subsidiary of a government company is also treated as a
A. Government Company
B. Public Company
C. Private Company
D. All of the above
7. The ______ of a government company is appointed or reappointed by the comptroller and auditor general of India.
A. Auditor
B. Company secretary
C. Both (a) and (b)
D. None of the above
8. Which of the following Company is incorporated in a country outside India?
A. Private Company
B. Foreign companies
C. Government Company
D. None of the above
9. Which of the following statement is false?
A. No legel formality is required to form a company.
B. The shareholders of a company have limited liability.
C. A company can own property in its own name.
D. A company is managed by the elected representatives of shareholders.
10. A is one who performs the preliminary duties necessary to bring a company into being and float it.
A. Auditor
B. Promoter
C. Director
D. Financer
11. The registered office clause of memorandum of association contains
A. The name of the state in which the registered office of the company is to be situated.
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.
12. “One who undertakes to form a company with reference to a given object and set it going and who takes the necessary steps to accomplish that purpose.
A. Promoter
B. Directors
C. C.E.O.
D. Board of Directors
13. Which of the following are the functions of a promoter?
A. Decides name of a company
B. Nomination of directors
C. Settles the details of memorandum and articles
D. All of these
14. A is neither an agent, nor a trustee of a company.
A. Directors
B. Company Secretary
C. Employees
D. Promoters
15. Company is managed by
A. Shareholders
B. Board of Directors
C. Karta
D. Both (a) & (b)
16. H.U.F. consists of which type of members
A. Both (b) & (c)
B. Heterogeneous
C. Homogeneous
D. None of the above
17. Partnership is governed by Partnership Act
A. 1956
B. 1948
C. 1932
D. 1982
18. which is not a case of lifting of corporate veil
A. Connors Bros. v. Connors
B. Jones v. Lipren
C. Pearce v. Brookes
D. CIT v. Meenakshi Mills Ltd.
19. Word Corporation’ is ______ than company.
A. Narrow
B. Wider
C. (a) or (b)
D. All of the above
20. Which of the following statements is not true?
A. A company is an artificial person created by law.
B. A company can do every act like a natural person except the acts which are purely of personal nature.
C. A company can be held liable for violation of the statutory provisions of the Companies Act.
D. A company can be imprisoned for violation of such provision which attract penalty by way of imprisonment only.
21. Which of the following is not the characteristic of a public company?
A. It has a separate legal entity
B. It has a perpetual succession
C. It has a common seal and separate property
D. Its shares are nontransferable
22. A and B were the only members of a company who died in a road accident. In this case, the company comes to end on the death of A and B.
A. True
B. False
C. Partly True
D. Partly False
23. A company being a legal person is also a citizen under the constitution of India
A. True
B. False
C. Partly True
D. Partly False
24. A statutory company or corporation is one which is incorporated
A. By an act of parliament
B. By an act of state legislature
C. Under the companies act, 2013
D. By either (a) or (b)
25. In case if a company limited by guarantee, the liability of the members can be enforced
A. At any time when the company so decides
B. Only at the time of winding up of the company
C. Only by an order of court
D. Only by an order of registrar of companies
26. A government company is one in which 51% or more of the paid up share capital is held by
A. Central Government alone
B. State Government alone
C. Central & State Government jointly
D. Any of the above
27. At the time of registration the filling of articles of association with the registrar of companies is compulsory for
A. Private companies, unlimited companies and companies limited by guarantee
B. Unlimited companies only
C. Both
D. None
28. The object clause of memorandum of association must be divided into two sub clauses, namely (i) main objects clause and (ii) object in furtherance of main object clause.
A. True
B. False
C. Partly True
D. Partly False
29. Which of the following statements is correct?
A. In limited companies, the liability of members holding fully paid-up shares is nil.
B. In companies limited by guarantee, the liability of members is limited to the amount which they have agreed to pay.
C. Both (a) and (b) are correct.
D. None of these is correct.
30. For which of the following companies it is not obligatory to have Article of association?
A. Public Companies Limited by Shares
B. Public Companies Limited by Guarantee
C. Private Limited Companies
D. Unlimited Companies
31. Which of the following statements is correct?
A. The memorandum and articles are binding on the members in their relation to the company.
B. The memorandum and articles are binding on the company In their relation to the members
C. None of these is true
D. Both of these are true
32. Company's memorandum and articles are public documents.
A. True
B. False
C. Partly True
D. Partly false
33. In case 'memorandum and 'articles' are inconsistent, then which shall prevail over the others?
A. Articles of Association
B. Memorandum of Association
C. The one approved by registrar
D. None of the above
34. A public company having a share capital can start it's business on obtaining
A. Certificate of incorporation and approval of company law board.
B. Certificate to commence business and approval of company law board.
C. Certificate of incorporation
D. Approval of high court
35. Company has _______ succession.
A. Longer
B. Continued
C. Perpetual
D. Limited
36. If company do not follow the principal of separate legal entity _______ can be done.
A. Lifting of corporate veil
B. Principal of equity
C. Principal of natural justice
D. All of above
37. Total managerial remuneration in a public company cannot be ________ of net profit.
A. 10%
B. 11%
C. 18%
D. 11.5%
38. Audit of government Company is done by C & AG. This statement is:
A. True
B. False
C. Partly True
D. Partly False
39. Any corporate body / association of firm can be appointed as director of the company. This statement is:
A. True
B. False
C. Partly False
D. Partly True
40. Which one of the following is not a main clause of memorandum of association?
A. Name clause
B. Capital clause
C. Object clause
D. Profit clause
41. _________ is to be executed on a non-judicial stamp paper.
A. Share warrant
B. Power of attorney
C. Incorporation certificate
D. None of the above
42. The word company is derived from ________ word Com Panis”.
A. French
B. Latin
C. German
D. Indian
43. Which of the following are the characteristics of a company ?
A. Corporate Personality
B. Limited Liability
C. Perpetual Succession
D. All of the above
44. The company has a capacity to sue and be _________.
A. Incorporated
B. Sued
C. Both (a) and (b)
D. None of the above
45. A company may be an
A. Incorporated company
B. Unincorporated company
C. Both (a) and (b)
D. None oh the above
46. A word corporation is derived from Latin term “corpus” which means:-
A. Body
B. Legal Person
C. Artificial Person
D. None of the above
47. The liability of the member of the company is limited to the extent of the shares held by them.
A. Unpaid value
B. Paid value
C. Nominal value
D. All of the above
48. Which of the following statement is correct?
A. Partners are the agents of the firm but member of company are not its agents
B. Partner cannot contract with his firm but a member of a company can
C. Both (a) and (b)
D. None of these is correct
49. In public company, the members of the company is not less than.
A. Seven
B. Ten
C. Twenty
D. Two
50. In private Company, member of the company is not less than
A. Seven
B. Ten
C. Two
D. Eight
51. A company is a _______ on the other hand a club is a _________
A. Trading association, non-trading association.
B. Non trading association, trading association.
C. Trading association, trading association.
D. None of these.
52. Which of the following are not the advantages of incorporation?
A. Separate property
B. Unlimited liability
C. Capacity to sue
D. Flexibility & autonomy
53. Which of the following are not the disadvantage of incorporation?
A. Formalities and expenses
B. Corporate disclosure
C. Limited liability
D. Both (a) and (b)
54. Which of the following are kinds of companies?
A. Private companies
B. Producer companies
C. Both (a) and (b)
D. None of the above
55. Provisions related to accounts, winding up, calls on shares, forfeiture, etc. are contained in
A. Articles of Association
B. Memorandum of Association
C. Prospectus
D. Statement in lieu of prospectus
56. Government company comes under section
A. 2 (44)
B. 2 (43)
C. 2 (45)
D. 2 (46)
57. Foreign Company must issue prospectus.
A. True
B. False
C. Partly true
D. Partly False
58. Company's memorandum & articles are public documents
A. True
B. False
C. Partly True
D. Partly False
59. For incorporation or registration
A. MOA must be subscribed
B. AOA must be subscribed
C. Only MOA
D. Both (a) & (b)
60. MOA contains of company
A. Regulations
B. Declaration
C. Constitutions
D. None of these
61. MOA has clauses
A. 9
B. 7
C. 6
D. 10
62. AOA is also called as of the company
A. Regulations
B. Bye Laws
C. Provisions
D. Both (a) or (b)
63.Tables I includes articles of
A. Unlimited company having share capital
B Company limited by guarantee
C. Company limited by shares
D. Public company
64. Which amongst the following documents is not required to be filed by a foreign company with the registrar?
A. Address of the registered office of the company
B. Address of the principles place of business in India
C. Declaration of Solvency
D. Articles of Association
65. Lifting of corporate veil is permitted
A. By statue
B. Voluntary
C. Any time
D. None of these
66. Which one of the following is NOT an essential feature of a company?
A. Perpetual Succession
B. Unlimited Liability
C. Separate Property
D. Transferability of shares
67. Which one of the following statement is not true regarding a company?
A. The shares of a company can be transferred
B. lt is very simple and easy to form a company
C. It is a separate legal entity
D. It has independence to form its policies
68. Which one of the following is NOT a disadvantage of a company?
A. lt does not have a capacity to sue
B. It has more social responsibility
C. Greater tax burden
D. More disclosures
69. Which of the following statement is NOT true regarding a private company?
A. It cannot invite public to subscribe to shares or debentures
B. Restricts the right to transfer its share
C. At least five members are required to form a company
D. lt should have at least two directors
70. Government Company is defined under which section of the Companies Act, 2013?
A. Sec. 2(45)
B. Sec. 2(44)
C. Sec. 2(43)
D. None of the above
71.Private Company need not issue prospectus
A. True
B. Partly true
C. False
D. None of these
72. Prospectus is required to be issued when rights issue is made
A. True
B. Partly true
C. False
D. None of these
73. Prospectus is not required to be issued when sweat equity shares are issued to directors and employees.
A. True
B. Partly true
C. False
D. None of these
74. Prospectus is required to be issued when issue is for Employees under Employee stock option scheme.
A. True
B. Partly true
C. False
D. None of these
75. When there is a untrue statement in a prospectus who can sue
A. Subscribed in primary market
B. Subscribed in secondary market
C. Rights issue
D. None of the above
76. Definition of prospectus was given under which sec.
A. 2(36)
B. 2 (30)
C. 2 (32)
D. 2 (34)
77. Which of the following are not required to issue prospectus ?
A. Private company
B. In case of right issue
C. Sweat equity issue
D. All the above
78. ________ are the prospectus issued instead of full prospectus.
A. Abridged
B. Statement in lieu
C. Shelf
D. Red herring
79. Which one of the following has a right to claim compensation for any loss due to mis statement in prospectus.
A. Purchasing shares in Primary Market
B. Secondary Market
C. Subscribers to memo
D. All the above
80. ______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements.
A. 2
B. 3
C. 1
D. 4
81. _______ includes an engineer, valuation, accountant.
A. Expert
B. Promoter
C. Auditor
D. Director
82. What is the liability of an expert for misstatement ________.
A. Fine - 50,000
B. Imprisonment -2 years
C. Both a) & b)
D. None of the above
83. What is the liability not delivering that can be imposed for statement in lieu of prospectus
A. Fine - 10,000
B. Imprisonment - 2 years
C. Both (a) & (b)
D. None of the above
84. _______ are the prospectus issued by the issuing house.
A. Deemed prospectus
B. Shelf prospectus issued by the issuing house
C. Red herring
D. None of the above
85. _______ Prospectus were issued in case securities were issued in stages
A. Deemed
B. Red hearing
C. Shelf
D. None of the above
86. ________are required to file prior to making second and subsequent issue of securities in case e shelf prospectus are filed:
A. Information memorandum
B. Information articles
C. Form 13
D. None of the above
87. Information memorandum + shelf prospectus together constitutes ________.
A. Memorandum
B. Articles
C. Prospectus
D. None of the above
88. Not less than _______ Days notice for a general meeting of a company must be given.
A. 10
B. 15
C. 21
D. 30
89. The minimum number of members that must be present at a valid meeting is called ________
A. Simple majority
B. Quorum
C. Proxy
D. None of these
90. A proxy can vote in case of _________
A. Poll
B. Meeting
C. Both
D. None
91. A Special resolution is one to pass with the votes cast in favour must be _______ times the votes cast against it.
A. 2
B. 3
C. 4
D. 6
92. A Special resolution must be field with the registrar for registration within ________ days.
A. 10
B. 15
C. 21
D. 30
93. To make the liability of directors unlimited a ________ resolution is required.
A. Ordinary
B. Special
C. Both
D. None
94. For declaration of dividend no _________ resolution is required.
A. Ordinary
B. Special
C. Both
D. None
95. A company can be wound up.
A. Voluntarily by members
B. By the order of the Tribunal
C. By Voluntary winding up by creditors
D. By all the above methods
96. A person liable to contribute towards the assets of the company on the event of its being wound up is a ___________
A. Liquidator
B. Solicitor
C. Contributory
D. Tribunal
97. On a winding up order being made in respect of a company, the official liquidator shall, become the _______ of the company.
A. Liquidator
B. Solicitor
C. Contributory
D. Tribunal
T.Y B.COM
SEMESTER - 6
BUSINESS LAW - II
MCQS - UNIT 4
---> LIMITED LIABILITY PARTNERSHIP ACT, 2008
---> MSME ACT
LIMITED LIABILITY PARTNERSHIP ACT, 2008
1. A/an ________ is a hybrid organization that combines the benefits of a corporate structure with the organizational flexibility of partnership.
A. An LLP
B. A partnership
C. A joint stock company
D. MOA
2. In which business model both individuals and body corporate may join as partners?
A. An LLP
B. A partnership
C. A joint stock company
D. MOA
3. The external structure of the LLP is same as a "joint stock company". But, in terms of its internal affairs, it enjoys the freedom of a "traditional form of partnership". True or false?
A. True
B. False
C. Can't say
D. Difficult to say
4. The LLP is run by _______?
A. The BOD
B. The members
C. The designated partners
D. The partners
5. What are the Features of LLP?
A. Body Corporate
B. Separate legal entity
C. Perpetual Succession and Limited liability
D. All of the above
6. If any of its partners have been found that, they have intentionally acted to defraud the creditors or they have fraudulent purposes, then in such case
A. The liability of such partners is unlimited for all or any of the debts or liabilities of the LLP. Such partners are liable to discharge such liability or debt out of their own assets.
B. But, at the same time, no partner shall be liable for the negligence/misconduct of another partner, because the partners of LLP are not agents of one another.
C. All are liable equally
D. Both A and B
7. Audit of accounts is not mandatory except where......
A. The aggregate contribution exceeds Rs. 25 lakh or annual turnover exceeds Rs. 40 lakhs.
B. The aggregate contribution exceeds Rs. 20 lakh or annual turnover exceeds Rs. 40 lakhs
C. The aggregate contribution exceeds Rs. 40 lakh or annual turnover exceeds Rs. 60 lakhs
D. The aggregate contribution exceeds Rs.25 lakh or annual turnover exceeds Rs. 60 lakhs
8. A LLP cannot raise money from the public by means of a public issue. True or False?
A. True
B. False
C. Can't say
D. Difficult to say
9. Registration of an LLP?
A. Registration is Mandatory with register of Co.
B. Registration is not mandatory with register of Co.
C. Registration is OPTIONAL
D. Registration is Mandatory with register of PARTNERSHIP
10. It is body corporate with separate legal entity having capacity to sue and being sued by others. It is true in case of?
A. An LLP
B. A partnership
C. A joint stock company
D. Both A and C
11. Minimum 2 designated partners with one being and Indian. Dsp must have DPIN (Designated partner ld. Number). True or false?
A. True
B. False
C. Can't say
D. Difficult to say
12. There are provisions for conversion of any other form of business into LLP. True or false?
A. True
B. False
C Can't say
D. Difficult to say
13. What are the privileges of a "LLP" as against a "JSC"?
A. No need to classify the objects clauses, No framing of capital clause
B. No framing of Articles, Flexibility of change of business
C. No mandatory general meeting
D. All of the above
14. Who can be a partner in an LLP ?
A. An individual,
B. An Indian company, whether private or public,
C. A foreign company, an LLP registered in India, an LLP registered outside India.
D. All of the above
15. Who cannot be a partner in LLP?
A. A corporate sole,
B. a co-operative society, and
C. Any other person not specified in the list of persons who can become partners
D. All of the above
16. The "incorporation document" shall be
A. Submitted to the Registrar in "Form 2"
B. Along with prescribed fee and
C. Statement signed by one of the subscribers stating that requirements of the Act with regard to formation of the LLP have been complied with.
D. All of the above
17. What is / are true in relation to an LLP?
A. If LLP violates such direction of the Central Government, it is punishable with a fine of not less than 10000 rupees but which may extend to 5 lakhs rupees.
B. The designated partner of the LLP shall be punishable with a fine of not less than 10000 but which may extend to one lakh rupees.
C. Only A
D. Both A and B
18. If LLP fails to fulfill provisions related to publish the name then?
A. LLP is liable to a fine which shall not be less than 50000 rupees
B. Which may extend to 5 lakh rupees.
C. Both A and B
D. NONE
19. According to Rule 9 of the LLP Rules, 2009 when 3 person cannot be appointed as a designated partner?
A. Has at any time within the preceding five years been adjudged insolvent or
B. Suspends, or has at any time within the preceding five years suspended payment to his creditors or made a composition with them; or
C. Has been convicted by court for any offence involving moral turpitude and sentenced to imprisonment for not less than six months, or has been convicted by a court for an offence involving section 30 of the Act.
D. All of the above
20. Method of Appointment of Designated Partners
A. Naming of designated partner in the incorporation document
B. In accordance with the LLP Agreement
C. By the central government
D. Both A and B
21. Who is responsible for all compliances under Act and is liable for all the penalties imposed on the LLP for various contraventions of the provisions of the Act or of the LLP agreement ?
A. designated partners
B. all the partners of LLP
C. all the members
D. none
22. What is the provision for remuneration of designated partners?
A. The Act is silent regard the payment of remuneration to a designated partner
B. The Act provides 50000 remuneration
C. The Act is not clear on it
D. The Act is not applicable on it
23. The liability of designated partners is absolute and independent of the attribution of any criminal intent or knowledge of the contravention. True or false?
A. True
B. False
C. Partly true
D. Partly false
24. A LLP may appoint a designated partner within 30 days of the occurrence of a vacancy. The LLP shall obtain the consent of such person and file his particulars with the Registrar. True or false?
A. True
B. False
C. Partly true
D. Partly false
25. The partners of an LLP do not have mutual agency relationship. True or false?
A. True
B. False
C. Partly true
D. Partly false
MSME ACT
26. Which sector has provided significant contribution to the economy by creating more employment opportunities, generating higher production, increasing exports and introducing innovation and entrepreneurship skills etc.?
A. Large scale
B. Small scale only
C. MSME
D. None
27. _______ Enterprises are defined in terms of Investment in Plant and Machinery.
A. Manufacturing
B. Mining
C. Service
D. Trade
28. ________ are those enterprises, where the investment in Plant and machinery does not exceed 25 lakh rupees?
A. Micro Enterprises
B. Small Enterprises
C. Medium Enterprises
D. None
29. ________ are those enterprises, where the investment in Plant and machinery is more than 25 lakh but does not exceed 5 crore rupees?
A. Micro Enterprises
B. Small Enterprises
C. Medium Enterprises
D. None
30. _______ Are those enterprises, which are engaged in providing or rendering of services?
A. Manufacturing
B. Mining
C. Service
D. Trade
31. ______ Enterprises are defined in terms of investment in equipment?
A. Manufacturing
B. Mining
C. Service
D. Trade
32. ________ are those, where investment in Equipment is more than 2 crore rupees but does not exceed 5 crore rupees?
A. Micro Enterprises
B. Small Enterprises
C. Medium Enterprises
D. None
33. MSMEs contribute nearly ________ of the India's GDP _________ of manufacturing output and _________of the exports.
A. 8%, 45%, 40%
B. 45%, 8%, 40%
C. 40%, 45 %, 8%
D. 8%, 40%, 45 %
34. Examine both the statements and comment
1. They provide the large share of employment opportunities after agriculture.
2. They are the nurseries for entrepreneurship and innovation
A. Both the statements are true
B. Both are false
C. Only 1st is false
D. Only 2nd is true
35. ________ has launched large number of programmes to help the entrepreneurs and small business. Following institutes help the entrepreneurs to plan and set up their business.
A. The Ministry of the MSMES
B. The Ministry of the finance
C. The Ministry of the industry
D. The Ministry of the India
36. Which institutes help the entrepreneurs to plan and set up their business?
A. NIESBUD - National Institute for Entrepreneurship and Small Business Development
B. NI-MSME - National Institute for Micro, Small and Medium Enterprises.
C. TIE: Indian Institute of Entrepreneurship DCMSME: Development Commissioner
D. All of the above
37. The vision of the Ministry of MSMEs includes _______
A. To ensure an orderly and robust growth and development of MSMEs and
B. To continue and streng then the role of MSMEs as an engine of growth for Indian Economy
C. To provide employment
D. Only A and B
38. The mission of the Ministry includes
A. To promote the/growth and development of globally competitive MSMEs including Khadi, Village and Coir Industries through the cooperation of concerned Ministries, Departments, State Government and other stakeholders
B. To endeavor to achieve accumulative growth of 40 -50 % in the number of registered enterprises by the end of 12th plan and increase this sector's contribution in GDP from 8 % to 10 % by the end of 12" plan
C. To encourage development
D. Both A and B
39. objectives of the Ministry of MSMEs
A. The growth and development of existing MSMEs
B. Creation of new enterprises
C. Improving performance of PSU and Responsibility Centers
D. All of the above
40. Growth and development of Khadi, Village and Coir Industries is _______ of MSME ACT?
A. Objective
B. Mission
C. Vision
D. Future vision
41. Which are the Main services rendered by development commissioner to MSME?
A. To advise the government in policy formulation for the promotion and development of small scale
industries.
B. To provide techno economic and managerial consultancy, common facilities and extension services to the small scale units.
C. To provide facilities for technology up gradation, quality improvement and infrastructure development, to develop human resources through training and skill up gradation.
D. All of the above
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