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Legal Aptitude – ELEMENTS OF COMPANY LAW Chapter 4 MOCK test CSEET

4 ELEMENTS OF COMPANY LAW

1. The word company is derived from

_________ word

(a)Greek

(b)Latin

(c)French

(d)German

2. The word company is a combination of

_________ and _________

(a)Com; pany

(b)Comm.; pannies

(c) Com; panis

(d)Com; pennies

3. Company originally referred to _________

(a)Merchants who would discuss business

matters at festive gatherings

(b)Association of persons who took their

meals together

(c)Association of persons who earned income

together

(d) Association of persons who carried out

same objectives

4. __________ is a joint stock enterprise in

which capital is contributed by a large

number of people.

(a)Corporation

(b)Association of persons

(c)Company

(d)Business merchants

5. In a joint stock enterprise _________ is

contributed by large number of people.

(a)Assets

(b)Liability

(c)Shares

(d)Capital

6. In case of 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

7. 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 and State Government jointly

(d)Any of the above

8. At the time of registration the filing 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)Companies limited by shares only

(d)All types of companies

9. If at the time of registration, a company

limited by shares does not file Articles of

Association with the Registrar, then

(a)The company cannot be registered

without this document

(b)The company is deemed to be adopted

‘Table P

(c)The company is deemed to have become a

company with unlimited liability

(d)The directors become liable to be

punished with fine at the rate of Rs. 50 for

each day during which the default continues

10. On 14th July, the Registrar of Companies

issued a Certificate of Incorporation, but it

was dated 10th July instead of 14th July. From

which date the company will legally come

into existence?

(a)10th July

(b) 14th July

(c) 31st July

(d) None of these

11. The death of an incorporated company can

be caused by _________

(a)Death of every member in the company

(b) Declaration of death of company by the

NCLT

(c) The process of winding up

(d) Death of every member and director in

the company

12._________ means the ability of a company

to maintain its existence by the constant

succession of new individuals who step into

the shoes of those who cease to be the

members of the company.

(a)Transferability of shares

(b)Separate legal entity

(c)Perpetual succession

(d)Artificial personality

13. According to __________”members may

come and go but the company can go on

forever”

(a)Buckley J

(b) Justice James

(c)Prof L C B Grower

(d)None of the above

14. The membership of an incorporate

company may change due to following

reasons:

(a)Transfer of shares

(b)Devolving of share on legal representative

(c)Cessation under provisions of Companies

Act

(d) All of the above

15. The _________ provide adequate facilities

for sale and purchase of securities.

(a)Government of India

(b)Stock Exchange

(c) Company

(d)Reserve Bank

16. Practice of __________ gives protection to

customers.

(a)Business Ethics

(b)Social ethics

(c)Moral ethics

(d)Economy ethics

17. __________ is the vital factor in successful

business strategy.

(a) Investor Loyalty

(b) Attraction and Talent

(c) Customer Satisfaction

(d) All of these

18. __________ plays a decisive role in

introducing and implementing ethics.

(a)Ethics in compliance

(b) Ethics in finance

(c)Ethics in marketing

(d) Ethics in Human resources

19. __________ deals with moral principles

behind the operation and regulation of

marketing.

(a)Ethics of moral principal

(b) Ethics of marketing

(c)Ethics of finance

(d) All of these

20. Which Act is important for business

organization having an ethics code?

(a)Law of Contract, 2002

(b)Sarbanes Oxley Act, 2002

(c)The English Contract, 2002

(d)None of the above

21. In a partnership, the property of the firm

is the property of the _________

(a)Firm

(b)Only partners who stay in firm till it is

dissolved

(c)Partners

(d)None of the above

22. In a company the property of the company

is the property of _________

(a)Members

(b) Key managerial personnel

(c) Directors

(d) Company

23. Partner can dispose of property and incur

liabilities as long as _________

(a)He acts in good faith

(b)He acts in ordinary course of business

(c)He is partner in firm

(d)All of the above

24. A partner’s liability is always _________

whereas a member’s liability is __________

(a)Limited; unlimited

(b)Joint; several

(c)Unlimited; limited

(d)Several; joint

25. A company consists of _________

members

(a)Homogenous

(b)Skilled

(c) Qualified

(d) Heterogeneous

26. In Hindu Joint Family business, the

_________ has the sole authority to contract

debts for the purpose of the business.

(a)Director

(b)Coparceners

(c)Karta

(d)All of the above

27. What are the Reasons for unethical

business practices?

(a)Greed for Quick money

(b)Administrative Corruption

(c)Cultural and Social Reason

(d)All of the above

28. Administrative corruption include ‘gifts*

to the:

(a)Factory Inspector

(b)Boiler Inspector

(c)Pollution Control Board Inspector

(d)All of the above

29. Measures to improve ethical behavior of

business are framed at which level:

(a)Societal level

(b)Government level

(c)Institutional level

(d)All of the above

30. A person becomes a member of Joint

Hindu Family business by virtue of

__________.

(a) Agreement

(b) Birth

(c)Contract

(d) His will

31. HUF need not be registered.

(a) True

(b) False

(c)True, if the number of members is less

than 20

(D) False, if the number of members is more

than 20

32. LLP is a _________ business form

(A) Proprietary

(b) Limited

(c) Corporate

(d) All of the above

33. LLP is a business the gives the _________

(a) Benefits of partnership and flexibility of

company

(b) Benefits of company and flexibility of

partnership

(c) Unlimited liability to the partners

(d) Detailed legal and procedural

requirements

34. Which of the following is a disadvantage

of corporate form of enterprise?

(a) Easy formation

(b) Perpetual succession

(c) Limited liability

(d) Corporate disclosures

35. A dormant company does not have any

__________

(a)Profit

(b)Significant accounting transaction

(c)Liabilities

(d)Assets

36. The registrar shall enter the name of a

company in the register maintained for

dormant company when __________

(a)The company does not file financial

statements or annual return for consecutive 2

years

(b)The company does not file financial

statements or annual return for consecutive 3

years

(c)The company does not file financial

statements or annual return for consecutive 5

years

(d)The company does not file financial

statements or annual return for consecutive 8

years

37. __________ company is incorporated with

the object of cultivating habit of thrift and

savings amongst its members.

(a) Investment company

(b) Non-Banking Financial Company

(c)Nidhi Company

(d)All of the above

38. A person shall not act as director unless

he has been allotted the __________

(a)Director Identification Number

(b)Corporate Identity Number

(c)Unique Identity Number

(d)All of the above

39. Any person who fails to get appointed as

director in general meeting can be appointed

as __________

(a)Additional director

(b)Nominee director

(c)Alternate director

(d)Director in casual vacancy

40. The additional director shall hold office

up to the date of __________

(a)Next annual general meeting

(b)Next extraordinary general meeting

(c)Next annual general meeting or the last

date on which the annual general meeting

should have been held, whichever is earlier?

(d)Next annual general meeting or the last

date on which the annual general meeting

should have been held, whichever is later

41. A __________ is a director appointed to act

in absence of an original director for a period

not less than 3 months from India.

(a)Additional director

(b)Nominee director

(c)Alternate director

(d)Director in casual vacancy

42. A company may by __________ remove

director.

(a)Ordinary resolution

(b)Resolution passed by requisite majority

(c)Special resolution

(d)Resolution passed by 2/3rd majority

43. Business Ethics has a __________

application:

(a) Universal

(b) Natural

(c) Practical

(d) None of the above

44. __________ is not a natural science but a

creation of human mind.

(a) Ethical Standard

(b) Business Ethics

(c) Ethics

(d) None of the above

45. __________ is a set of principle and

expectations that are considered binding on

any person who is the member of a particular

group.

(a)Code of ‘ethics’

(b) Code of ‘conduct’

(c)Code of ‘practice’

(d) all of the above

46. The alternative names for code of conduct

are.

(a)Code of ethics

(b) Code of practice

(c)Both (a) & (b)

(d) None of the above

47. In case of small companies at least

__________ board meeting should be

conducted in each half of the calendar year

(a) 1

(b) 3

(c) 2

(d) 4

48. In case of dormant companies at least

__________ board meeting should be

conducted in each half of the calendar year

(a) 1

(b) 3

(c) 2

(d) 4

49. The gap between 2 boards in case of one

Person Company should be

(a)More than 90 days

(b)More than 120 days

(c)Less than 90 days

(d)Less than 120 days

50. The gap between 2 boards in case of small

companies should be

(a)More than 90 days

(b)More than 120 days

(c)Less than 90 days

(d)Less than 120 days

51. The gap between 2 boards in case of

dormant companies should be

(a)More than 90 days

(b)More than 120 days

(c)Less than 90 days

(d)Less than 120 days

52. Every company having __________ is

required to constitute a corporate social

responsibility committee of the Board of

Directors

(a) Net worth of rupees five hundred Crore or

more

(b)Turnover of rupees one thousand Crore or

more

(c)Net profit of rupees five crore or more

(d) Any of the above

53. The composition of the CSR Committee

shall be disclosed in __________

(a) Annual return

(b) AGM Notice

(c) Auditor’s report

(d) Board’s report

54. Amount of money required to be spend on

CSR initiatives is –

(a) 5% of Net profit

(b) 2.5% of Net profit

(c) 2% of Net profit

(d) 0.5% of Net profit

55. Duties of CSR committee does not include


(a) Formulate and recommend CSR policy

(b) Monitor the CSR policy

(c)Recommend the amount of expenditure

for CSR activities

(d)Maintain the accounts for expenditure on

CSR

56. Memorandum of association contains

which of the following:

(a)Place of registered office of the company

(b)Objective of the company

(c)Amount of registered office of the

company

(d) All of the given options.

57. Which one of the following statements in

respect of a public limited company is

correct?

(a)There can be less than 7 members.

(b)The convent of directors and their

contract to purchase qualification shares, if

any, required must be filed.

(c)Remuneration of directors is not

controlled by any provision of companies Act.

(d)None of the above

58.CaseSaloman v. Salomon and Company

proved that.

(a)Company. Is independent person

(b)A person can be a member as well as

creditor.

(c)Shareholder is not liable for the debt of co.

(d)All of the above

59.Which two types of business structure are

created via a process of incorporation?

(a) Companies and sole proprietorships.

(b) Partnerships and limited liability

partnerships.

(c) A company and limited liability

partnerships

(d) Companies and partnerships

60.A public limited company may in the

general meeting. Resolve to capitalize any

part of the amount standing to the credit of

any of its reserve accounts. Up to the

recommendation of the:

(a) Managing Director

(b) Board of directors

(c) Financial advisors

(d) Shareholders.

61.Who is an independent director?

a) Non-executive director, who is not related

to promoters

b) Non-executive director, who is related to

promoters

c) Executive director, who is not related to

promoters.

d) Executive director who receives

remuneration from promoters.

62.If a company’s shares are NOT freely

transferable, it is a

(a) Private Company

(b) Public Company

(c)Both (a) and (b)

(d) None of the above

63.In case of public company minimum no. of

members is

(a) 1

(b) 2

(c) 5

(d) 7

64.A company secretary is considered to be

(a) A director of the company

(b) A member of the company

(c) An independent contractor

(d) An employee of the company

65.Company secretary of company is

appointed by

(a) Shareholders

(b) Promoters

(c) Government

(d) Directors

66.Document to be presented for the

registration of a company with the registrar

are

(a) The memorandum of the company

(b) Its articles

(c) Both a and b

(d) Nothing specified in companies Act.

67.A company which has a control over a

subsidiary company is a

(a) Holding company

(b) Controlling company

(c) Main company

(d) Public company

68.Mr. Y a member of Company XYZ makes a

contract with his company XYZ.

(a)It is illegal

(b)It is legal

(c) Depend in the situation of case.

(d) None of the above

69.Which of the following are the

characteristics of a private company ?

X. Limited liability of members

Y. Perpetual succession

Z. Free transferability of shares

Correct option is —

(a)X and Y

(b)Y and Z

(c)X and Z

(d)X, Y and Z.

70. __________ also serves to inform

employees of the vision that the company’s executives have for the company’s image and

goals.

(a)Customer Feedback

(b)Code of Ethics

(c)Ethics Coach

(d)Mission.

71.Investors are concerned about __________

of the company in which they invest.

(a)Ethics, social responsibility and reputation

(b)Employees

(c)Executive compensation

(d)Only profitability.

72.The ethics in human resource

management cover those ethical issues

arising around the —

(a)Society-employer relationship

(b)Customer-employees relationship

(c)Employer-State relationship

(d)Employer-employees relationship.

73.Price skimming is an ethical issue covered

under —

(a)Ethics in Compliance

(b) Ethics in Marketing

(c) Ethics in Finance

(d) Ethics in Production.

74.Anti-competitive practices include —

(a)Insider trading

(b)Grey markets

(c)Employment of child labour in production

activities

(d)Tie-in arrangements.

75.A situation requiring a choice between

equally undesirable alternatives; any difficult

or perplexing situation or problem is known

as —

(a)Trivial

(b)Pivotal

(c)Dilemma

(d)Veteran.

76.Spending money on restoring the

environment, affected out of products of

inherently dangerous nature are known as —

(a) Business Ethics

(b) Corporate Philanthropy

(c) Whistle Blowing

(d) Corporate Leadership.

77.Mohan joined a company as Chief Finance

Officer (CFO). He observed that the company

is involved in concealing tax and engaged in

other malpractices. He brought this fact to

the notice of the Income Tax Authorities.

This action of Mohan would be termed as —

(a)Cartelisation

(b)Misconduct

(c)Ethical wrong

(d)Whistle blowing.

78.The rules or principles that define right or

wrong conduct are known as—

(a)Ethics

(b)Customer satisfaction

(c)Ethical conflict

(d)None of the above.

79.An activity is probably ethical if —

(a)It is approved by most individuals in the

organisation and is customary in the industry

(b)It is approved by most individuals in the

organisation

(c)It is customary in the industry

(d)It is legal.

80.In the case of company. Audit is

(a)Compulsory

(b) Optional

(c) Very much unknown

(d) None of the above

81.Generally, objects of the company are

regulated in

(a) A.O.A

(b) M.O.A.

(c) Certificate of Incorporation

(d) None of these

82.Generally internal rules of the company

are regulated in

(a) A.O.A.

(b) M.O.A.

(c) Certificate of Incorporation

(d) None of these

83.Company can. be called govt. company if

__________% of paid up share capital is held

by government company

(a)Morethan 30

(b)Morethan 40

(c)Morethan 50

(d)None

84.A company is exempted to add “Ltd” or

“Pvt Ltd” at the end of their name if it is

(a) Private Company

(b) Govt. Company

(c) Defunct Company

(d) None of the above

85.Who stands in the fiduciary position of the

company?

(a)Directors

(b)Promoters

(c)Auditors

(d)None of the these

86.The articles of association contains the

(a)Rules

(b)Regulations

(c)By-laws

(d)All of the above

87.The term business includes every lawful

trade, occupation and profession

(a)True

(b)False

(c)Sometimes false

(d) None of the above

88.The companies that are formed under

special act are called

(a)Registered companies

(b)Statutory companies

(c)Both a and b

(d)None of the above

89.If the rights of a particular class of

shareholders is to be changed than company

should call

(a)Shareholders meeting

(b)Directors meeting

(c)Class meetings

(d)Emergency meeting

90.The work that is NOT done in board

meeting is

(a)To issue debentures

(b)To makes calls on shareholders regarding

the unpaid money

(c)Power to make loans

(d)Power to declare dividend

91.Tick the correct option

(a)Public Limited Company – minimum 3

number of directors

(b)Private Limited Company – minimum 2

number of directors

(c)OPC – minimum 1 number of directors

(d)None of a, b and c is incorrect

92.Maximum number of directors in a private

company can be

(a)15

(b) 20

(c)17

(d) 12


93.As per Companies Act, 2013 what is not

included in financial statement

(a) Fund flow statement

(b) Cash flow

(c) Balance sheet

(d) Profit and Loss account

94.What is true for OPC?

(a) No director

(b) One number but no director

(c) One Director

(d) No provision is given in Companies Act,

2013 for directors of such company

95.OPC can be

(a) Private Limited Company

(b) Public Limited Company

(c) Co-operative Company

(d) Foreign Company

96.Liability under OPC is

(a) Unlimited

(b) Not limited

(c) Limited

(d) None of Limited

97.The cooling off period for directors as per

companies Act, 2013 is for———- years

(a) 3

(b) 10

(c) 2

(d) 7

98.In a private Limited company a

managerial person can be appointed for

maximum

(a)5 years

(b)7 years

(c) 10 years

(d) 4 years

99.Statutory body created for accounting

norms under CA 2013 is

(a) NFRA

(b) NCLT

(c) SFIO

(d) CRA

100.Which of the following is true for SFIO?

(a) It is statutory body

(b) It has powers to search and seize

(c) It is for investigation of fraud

(d) All

101.Maximum number of companies an

auditor can audit are

(a) 20

(b) Unlimited

(c) 15

(d) 100

102.Where one company holds a majority of

the shares in another company the latter

becomes a__________of the company.

(a) Holding company

(b) Private company

(c) Subsidiary company

(d) Public company

103.The term__________means a company

incorporated outside India which has place of

business in India.

(a) Private company

(b) Foreign company

(c) Joint company

(d) public company

104.The__________maintains up to date lists

of the name of all the companies in India.

(a)Government

(b) State government

(c) Registrar of companies

(d) NCLT

105.MOA stands for __________

(a)Measurement of Association

(b)Memorandum of Association

(c) Members of Association

(d) Memorandum of Articles

106.The memorandum of association is

regarded as the__________of the company.

(a)Fundamental document

(b) Account book

(c) Guideline

(d) None

107.Which of the following cases clearly

established that a company has a separate

legal entity:

(a)Salomon v Salomon and Co. Ltd.

(b)Sultan and Co. Ltd. v Sultan

(c)Connors Bros v Connors

(d)Foss v Harbottle.

108.A company that owns substantial shares

in another company to control management

and operations by influencing its Board of

Directors is known as:

(a)Holding Company

(b)Foreign Company

(c)Public Company

(d)Private Company.

109. Which of the following action is an

ethical practice?

(a)Harassment

(b)Refuse to grant leave, recording genuine

reason in writing by the employer

(c)Corruption

(d)Discrimination by employer in treatment

while dealing with employees.

110.Which of the following is/are correct

statements ?

(a)Business ethics is not applicable is small

business and industry

(b)Business ethics is not applicable to

Government departments

(c)Business ethics is applicable to all types of

businesses

(d)Business ethics is applicable to only few

specified business by GOI.

111.A/An __________ is a moral situation in

which a choice has to be made between two

equally undesirable alternatives.

(a)Moral Problem

(b)Moral Obligation

(c)Ethical Confusion

(d)Ethical Dilemma.

112.Which of the following ethical issue is

related to finance?

(a)Abusing Co-workers

(b)Black Mailing

(c)Insider Trading

(d)Using of power and abusive language.

113.The element which serves to provide

employees with a means for reporting

observed misconduct or violations without

fear of reprisal is known as:

(a)Ethics Training

(b)Ethics Coach

(c)Strong Code of Ethics

(d)Systems for confidential reporting.

114.Which of the following can be related as

the benefits of behaving ethically by the

businesses?

(a)Long term sustainability

(b)Goodwill lost

(c)Societal resistance

(d)High attrition rate

115.Which ethical principle in business

advocates equal treatment of all irrespective

of caste, creed, gender or any other

differences’?

(a)Justice and Fairness

(b)Ethics of Care

(c)Utilitarianism

(d)Rights and Duties

116.A supplier of a component part has

offered Karan’s family a free two- week cruise

if his firm gets a very large order from karan’s

company. The most ethical course of action

for Karan to take would be to:

(a)Call the police

(b)Accept it if the part in question meets

quality standards

(c)Politely turn it down and discuss the offer

with his boss

(d)Ask around and see how his boss handled

such offers previously.

117.The records and operation of the

organisations have to be made more

transparent. The shareholders, employees

and creditors of the firm should be aware of

each and every financial decision taken by the

firm. This statement can be attributed to

which type of measure to improve ethical

behaviour of business?

(a) Government level

(b) Global level

(c) Institutional level

(d) Societal level.

118.Activity to improve ethical behaviour by

enacting various legislation is not taken at:

(a) Government level

(b) Institutional level

(c) Industrial level

(d) Societal level.

119.The__________of the company shall

subscribe their names to the memorandum

(a) Managers

(b) Employees

(c) Creditors

(d) Promoters

120.The memorandum of a company limited

by shares shall also state the__________of its

members is limited.

(a) Liability

(b) Responsibility

(c) Control

(d) Right

121.The__________are the rules, regulations &

bye-laws for the internal management of the

affair of a company.

(a) Memorandum of association

(b) Fundamental document

(c) Article of association

(d) None

122.The purchase of its own shares or other

securities by a company referred to as:

(a) Issue of shares

(b) Bonus share

(c)Rights issue

(d) Buyback of shares

123.The statutory companies are alsoknown

as __________.

(a) Private company

(b) Co-operative company

(c) Joint company

(d) Corporation

124.For a BM dealing with non-urgent

matters notice of the BM shall be given atleast

before :

(a)7 days

(b)14 days

(c)21 days

(d)28 days

125.When Directors participate through

Audio Visual means what are its pre

requisites:

(a) It should record the Directors’

participation

(b) It should record and store the proceedings

of the meeting

(c) It should recognize the participant

Director

(d) All of these

126.BM was called for an urgent matter

required to be deliberated, what are the

requirements for such a BM:

(a) An Independent Director (if any) shall be

the Chairman of such a meeting

(b) An Independent Director (if any) shall be

present at such meeting OR atleast ratify the

decisions made there at through circulation

(c) If the Company has Independent

Directors, only they can vote on such urgent

matters

(d) Notice calling such a BM shall be signed

by Independent Directors only

127.What modes of attendance are available

to a Director attending a BM

(a) In person

(b) Video Conference

(c) Prescribed Audio Visual means

(d) All of these

128.Mahesh is a creditor of an unlimited

company. The company was wound up.

Mahesh, therefore, wants to sue the members

of the company to recover the dues. Advise

Mahesh regarding the remedy available to

him.

(a) As it is an unlimited liability company

Mahesh can sue the members

(b) As it is an unlimited liability company

Mahesh can sue the members as well as the

company

(c) Mahesh cannot sue the members or the

company even though the liability is

unlimited

(d) Mahesh can sue the company but not the

members as the members liability is

unlimited towards the company and not

towards the creditors.

129.Prabhu was desirous of starting an OPC in

Delhi and wanted to know how many days he

needs to be in India to form this OPC

(a) 182 days or more in the immediately

preceding financial year

(b) 182 days in the year of incorporation

(c) 182 days in the immediately preceding

year

(d) 182 days in the immediately 3PFY.

130.Which of the following is not a significant

accounting transaction?

(a) Expenses for maintenance of office and

records

(b) Allotment of securities for fulfilment of

this Act

(c) Payment of fee by the company to the

Registrar

(d) All of these are significant accounting

transactions.

131.Where at the meeting a resolution is to be

passed and both equity and preference have a

right to vote, the voting rights shall be

(a) shall be in the same proportion as the

paid-up capital in respect of the equity shares

bears to the paid-up capital in respect of the

preference shares.

(b) Shall be in the ratio of 2:1

(c) Shall be equal

(d) The preference shareholder shall in no

situation be given a right to vote

132.If a company plans to make variations to

the voting rights of a member and the

members do not consent to such alteration

they may apply to the tribunal within

(a)21daysofpassingofresolution

(b)15daysofpassingofresolution

(c)30daysofpassingofresolution

(d)60daysofpassingofresolution.

133.The company wants to extinguish the

liability on any of its shares in respect of the

share capital not paid-up. For this the

company needs the confirmation of

(a) Tribunal

(b) Central government

(c) Court

(d) Regional director

134.The value of the shares of the company

are 10 per share 4 paid up. The company

cancelled the liability on the shares of 6 to 4

unpaid, thus decreasing the value of the

shares to 8. For such reduction the company

needs to pass a/an

(a) Board resolution

(b) Ordinary resolution

(c) Special resolution

(d) Unanimous resolution

135.A company dies with the death of its

shareholders:

(a)Partly true

(b)True

(c)False

(d)Can’t say

136.Which among the following is an example

of unethical behaviour in an organisation?

(a)Bullying Employees

(b)Forcing them to work long hours

(c)Both (a) and (b)

(d)None of the above

137.Which one of the following is the ethical

activity:

(a)Loosing talks

(b)Employees using phones during their

lunch break for appointment of doctor

(c)Both (a) and (b)

(d)None of the above

138.Which of the following is the example of

unethical practice in ethics in finance:

(a)Misleading financial analysis

(b)Over billing

(c)Bribery

(d)All are applicable

139.Which of the following is unethical

practice:

(a)Harassment

(b) Misuse of minutes

(c) Theft of stock

(d) All are applicable

140.Code of conduct is followed by:

(a)Code of ethics

(b)Only (a)

(c)Code of unethical practice

(d)Both (a) and (c)

141.Which of the following ethics is

concerned with meaning of philosophical

language and moral proposing:

(a)Virtue ethics

(b)Political ethics

(c)Normative ethics

(d)Meta ethics

142.What is the meaning of “Whistle

Blowing”:

(a)Disclosure Corruption

(b)Brevity

(c)Both (a) and (b)

(d)None of the above

143.Which of the following is /are the

elements of ethics:

(a)Formal code of conduct

(b)Ethics Communication

(c)Ethics Committee

(d)All are applicable

144.Why business should behave ethically?

(a)To exist in a competitive environment

(b)To keep its commitments

(c)To protect their employee

(d)All are applicable

145.Ethics is derived from:

(a) Ethos

(b) Mores

(c) Both (a) and (b)

(d) None of the above

146.If the articles of the company do not

specify a higher number the quorum for a

private company shall be

(a) 2

(b) 5

(c) 15

(d) 30

147.Can a company conduct postal ballot for

any matter not specified by the Central

Government

(a) Yes the company can company any

business through postal ballot

(b) Yes provided it is not an ordinary business

(c) Yes provided it is not an ordinary business

or any business, in which the director or the

auditor have to make any representation.

(d) No, only business specified by the Central

Government can be conducted through

postal ballot.

148.The minute book can be kept at

(a) The registered office

(b) Any other place decided by the Board

(c) The registered office or any other place

decided by the Board

(d) In case of general meeting at the

registered office and in case of board meeting

at the registered office or any other place as

decided by the Board.

149.A resolution shall be a special resolution

when the votes cast in favour of the

resolution by members are not less than

__________ the number of votes, if any, cast

against the resolution.

(a) Twice

(b) Three times

(c) One third

(d) One fourth

150.Key Managerial Personnel includes

(a) CEO & MD

(b) Whole time Director

(c) Chief Financial Officer

(d) All of the above

151.Which of the following is part of Free

Reserves?

(a) Unrealized Gains

(b) Revaluation of Assets

(c) Securities Premium Account

(d) Notional Gains

152.Foreign Company is company

incorporated outside India having

(a) Place of Business in India

(b) Any Business activity In India

(c) Place of business through AGENT

(d) All of the Above

153.Member of company includes

(a) Subscriber to Memorandum

(b) Person Who Agrees inwriting to be a

member

(c) Shareholder of Company

(d) All of the above

154.Small Company means a company

(a) Paid Up Capital does not exceed 50 Lakhs

or higher amount maximum up to 5 Crore

(b) Turnover does not exceed 2Crore or

higher prescribed maximum up to 20 Crore

(c) Section 8 Company

(d) Both A & B

155.Those who provide financing in exchange

of ownership are called:

(a)Lenders

(b)Analysts

(c)Equity Investors

(d)Debt financing

156.Under section 12 of the Companies Act, a

company shall, on and from the __________

of its incorporation, have a registered office

capable of receiving and acknowledging all

communications and notices as may be

addressed to it.

(a)45th day

(b)2 months

(c)15th Day

(d)30th Day

157.One of the most critical ethical issues

faced in human resources is:

(a)Insider Trading

(b)Affirmative action

(c)Fraudulent asset valuations

(d)Product testing ethics.

158.The reason for a business to behave

unethically could be:

(a)Long term commitments with customers

(b)Sustainability

(c)Tax Evasions

(d)Administrative reforms.

159.You work as a manager of camp that runs

adventure holidays for children. During their

holidays, children take part in activities such

as rock climbing under the direction of

instructors who are employed by you.

Observing strict safety standards is of

paramount importance, since the lives of

children and instructors are potentially at

risk. Which of the following action will be

considered as ethical?

(a)To scold the instructor publically

(b)To check instructors qualification and skill

at the time of joining

(c)To change the instructors once in a month

so that they can work without emotional

attachment

(d)To introduce random drug and alcohol

testing for instructor to ensure that their

ability to fulfill their role is not impaired.

160. In general, ethics are related to:

(a)Business only

(b) Few aspects of life only

(c) Every aspect of life

(d) Few categories of business only.

Good Luck 🙂

ANSWER SHEET

Que Ans Que Ans Que Ans Que Ans

1 B 41 C 81 B 121 C

2 C. 42 A 82 A 122 D

3 B 43 A 83 C 123 D

4 C 44 C 84 D 124 A

5 D 45 D 85 B 125 D

6 B 46 C 86 D 126 B

7 D 47 C 87 A 127 D

8 A 48 C 88 B 128 D

9 B 49 A 89 C 129 A

10 A 50 A 90 D 130 D

11 C 51 A 91 D 131 A

12 C 52 D 92 A 132 A

13 C 53 D 93 A 133 A

14 D 54 C 94 C 134 C

15 B 55 B 95 A 135 C

16 A 56 D 96 C 136 C

17 C 57 B 97 A 137 B

18 D 58 D 98 A 138 D

19 B 59 C 99 A 139 D

20 B 60 B 100 D 140 D

21 C 61 A 101 A 141 A

22 D 62 A 102 C 142 A

23 D 63 D 103 B 143 D

24 C 64 D 104 C 144 D

25 D 65 D 105 B 145 C

26 C 66 C 106 A 146 A

27 D 67 A 107 A 147 C

28 D 68 B 108 A 148 D

29 D 69 A 109 B 149 B

30 B 70 B 110 C 150 D

‘ 31 A 71 A 111 D 151 C

32 C 72 D 112 C 152 D

33 B 73 B 113 D 153 D

34 D 74 D 114 A 154 D

35 B 75 C 115 A 155 C

36 A 76 A 116 C 156 C

37 c 77 D 117 C 157 B

38 A 78 A 118 C 158 C

39 a 79 C 119 D 159 B

40 d 80 A 120 A 160 C

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