KMB207 Legal aspects of Business mcq Set 2

11th September 2020 1 By indiafreenotes

Negotiable Instruments Act mcq

1) Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?

  • Section 5
  • Section 6
  • Section 4
  • Section 13
  • Section 8

 

2) Which of the followings are not the Negotiable Instruments as defined by the Statute…

  • Banker’s Note
  • Promissory Note
  • Bill of Exchange
  • Cheques
  • All of the Instruments are Negotiable Instruments

 

3) Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is ……

(I) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act

(II) Containing an unconditional undertaking

(III) To pay a certain sum of money only to a specific person or the bearer

(IV) The seller is bound to accept the promissory note

(V) A document was written and signed by the payer/maker

 

  • (I), (II) and (III)
  • (II), (III) and (V)

  • (II), (III), and (IV)
  • (I), (III) and (IV)
  • All of the above

 

4) Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882…

  • Section 90
  • Section 91
  • Section 92

  • Section 93
  • Section 94

 

5) The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount?

  • 15%
  • 25%
  • 30%
  • 33%
  • 20%

 

6) Which of the following is/are true about Bill of Exchange?

(I) A bill of exchange requires in its inception two parties.

(II) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee.

(III) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date.

(IV) Definition of “Bill of Exchange” is mentioned in Section 6 of the Negotiable Instrument Act.

 

  • (I) and (IV)
  • (I), (II) and (IV)
  • (II) and (III)

  • (III) and (IV)
  • All of the Above

 

(7) If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.

  • 24
  • 12
  • 36
  • 48

  • 60

 

(8) Section 6 of the Negotiable Instruments Act defines ___

  • Cheque

  • Bill of Exchange
  • Promissory Notes
  • Dishonour by non-payment
  • Dishonour by non-acceptance

 

(9) If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds _____

  • All the parties except minor

  • All the parties including minor
  • Minor Only
  • Minor and Only Drawer
  • Minor and the Drawee

 

(10) Which of the following is/are false about Dishonour of Cheque?

(I) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account.

(II) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier

(III) Imprisonment for such offence may be extended for period of five year

(IV) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

  • (I) and (IV)
  • (II) and (III)

  • (II), (III) and (IV)
  • Only (IV)
  • Only (III)

 

  1. Person named in the instrument to whom money is directed to be paid is known as _______________.

a) Drawer

b) Acceptor

c) Maker

d) Payee

 

  1. Maker of a bill of exchange is called as ____________

a) Drawer

b) Drawee

c) Acceptor

d) Payee

 

  1. Days of grace provided to the Instruments at maturity is _______________

a) 1 day

b) 2 days

c) 3 days

d) 5 days

 

  1. Parties to a negotiable instrument can be discharged from liability by ______________

a) Cancellation

b) Payment

c) Release

d) All of the above

 

  1. Validity period for the presentment of cheque in bank is _______________

a) 3 months

b) 6 months

c) 1 year

d) 2 years

 

  1. Offences committed under the Negotiable Instruments Act can be _______________

a) Compoundable

b) Non-compoundable

c) Non-compoundable and non-bailable

d) Bailable

 

  1. A negotiable instrument that is payable to order can be transferred by:

a) Simple delivery

b) endorsement and delivery

c) endorsement

d) registered post

 

  1. A negotiable instrument drawn in favour of minor is

a) Void

b) Void but enforceable

c) Valid

d) None of these

 

  1. Which of the following is not applicable to negotiable instruments?

a) It must be in writing

b) It must be transferable

c) It must be registered

d) It must be signed

 

  1. Person named in the instrument to whom money is directed to be paid:

a) Drawer

b) Acceptor

c) Maker

d) Payee

 

Law of partnership Act. mcq

 

  1. The Partnership Act, 1932 deals with……..

a) Partnership in general

b) Partnerships between individuals

c) Joint ventures

d) Business collaborations

 

  1. The partnership Act, 1932 came into force on…………………

a) 1st day of April 1932

b) 1st day of October 1932

c) 1st day of January 1932

d) 31st day of December 1932

 

  1. The partnership Act extends to……………

a) The whole of India

b) The State of Jammu & Kashmir

c) The whole of India except the State of Jammu & Kashmir

d) The whole of India except the State of Jammu & Bihar

 

  1. Partnership is the relation between persons who have agreed to share the profits of a business carried on by…………. acting for all.

a) All

b) Any of them

c) All or any of them

d) None of above

 

  1. In order that persons may become partners, it is essential that………………

a) There must be at least two persons

b) The business must be carried on by all or any of them acting for all

c) The agreement must be to share the profits of a business

d) All of above

 

  1. Which of the following are the essentials of partnership?

a) Association of two or more persons

b) Agreement/ contract

c) Carrying on business

d) All of above

 

  1. Persons who have entered into partnership with one another are called individually………

a) Firm

b) Co-owner

c) Firm name

d) Partner

 

  1. Persons who have entered into partnership with one another are collectively called……..

a) Firm

b) Co-owner

c) Firm name

d) Partner

 

  1. The name under which partnership business in carried on is called…………

a) Firm name

b) Firm

c) Business name

d) Owners name

 

  1. A firm is the name of…………..

a) The partners

b) The minors in the firm

c) The business under which the firm carries on business

d) The collective name under which it carries on business

 

  1. Partnership firm is separate legal entity apart of its partners.

a) True

b) False

c) Partly true

d) Partly false

 

  1. A partnership firm cannot use the word “Limited” as a part of its name.

a) True

b) False

c) Partly true

d) Partly false

 

  1. Partnership is governed by Partnership Act, 1932. Whereas a company is Governed by……….

a) The Companies Act, 1961

b) The Companies Act, 2013

c) The Companies Act, 1957

d) The Companies Act, 1975

 

  1. Registration of partnership is not compulsory but registration of company is………….

a) Optional

b) Compulsory

c) Compulsory in some cases

d) Optional but compulsory in some cases

 

  1. Minimum two persons are required to from partnership but minimum numbers of member required to from a company are; in case of private company…………& in case of public company. …….

a) 2 & 7

b) 7 & 2

c) 3 & 8

d) 3 & 7

 

  1. Affairs of company are managed by………

a) Board of trustee

b) Board of committee

c) Board of Directors

d) Shareholders

 

  1. A change in the nature of the business can only be brought about by the consent of……………….

a) Majority partners

b) All the partners

c) Two partners

d) Five partners

 

  1. Where a partnership firm is formed for a particular undertaking or undertakings, it proceeds to carry on other undertaking or undertaking, in that event the mutual………….of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures of undertaking.

a) Rights

b) Duties

c) Rights and duties

d) Duties & liabilities

 

  1. Personal who do not invest or participate in the management of the firm but only give their name to the business or firm are known as……………

a) Active partner

b) Sleeping or dormant partner

c) Nominal partner

d) Partner in profits only

 

  1. A partner who is entitled to share in the profits of a partnership firm without being liable to share the losses, is called a…………….

a) Active partner

b) Sleeping or dormant partner

c) Nominal partner

d) Partner in profits only

 

  1. Which of the following partner can retire without giving public notice?

a) Active partner

b) Sleeping or dormant partner

c) Nominal partner

d) Partner in profits only

 

  1. When a partner of a firm agrees to share the own share of profit with an outside, it called……………

a) Co-partnership

b) Undisclosed partnership

c) Profit sharing scheme

d) Sub-partnership