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
Team CS Aspirant