Sr.no.

QUESTION OPTION A

1 Which of the statement is not correct as It is an artificial person.

regards a company:
2 When the company assumes an enemy The government of the country of the place
character: of incorporation is liable
3 Effects of pre- incorporation contracts: If adopted by the company after
incorporation, the company is liable.

4 As regards the consequences of non- The company is a legal association.

registration of a company, which
statement is not applicable:
5 In case of one person company One
minimum numbers is:
6 Independent corporate personality Company is independent in some aspects
means: only
7 A company can be limited by shares, True
guarantee or unlimited:
8 A company has perpetual succession, Company exist for perpetuity
means:
9 The corporate veil of the company may Statutory provisions
be lifted under:
10 When the minimum subscription is not 120 days
received, the money must be returned
within
11 Acquires a corporate personality.
A company on registration:

12 When the company wants.

The corporate veil of a company is
lifted:
13 Pre-incorporation contracts are: Binding on the promoters.

14 Since a company is regarded as an The members of the company can be sued

entity separate from its members: for the debts of the companies

15 Which statement is correct as regards Private company does not require

private company: registration
16 A public company has: Minimum 7 persons.
18 Which statement is not correct as Private company does not require
regards private company: registration.
19 A public company has: Minimum 7 persons.

20 A private company gets converted to a Default

public company by:
21 In case the company has been registered Within 5 years of registration
with a name that is an undesirable one,
the Central Government can ask for a
change of name.

22 For alteration of the object clause: Requires only special resolution.

23 A certified copy of the order of the One month of its alteration

Central Government confirming the
alteration of Memorandum of
association, is to be registered with the
Registrar of Companies within:

24 The doctrine of indoor-management The company

comes to the aid of:
25 The doctrine of Constructive notice can The Company Law Board
be invoked by:
26 Which statement is incorrect as regards MOA is primary and AOA is secondary.
MOA:

27 MOA is compared to: Constitution

28 Which statement is incorrect as regards Contains the main objects
the object clause:
29 Articles of Association deals with: Aims and objectives of the company

30 Any property acquired under an ultra Contract is null and void.

vires transaction.
31 Which of the following does not fall Borrowings powers.
within the AOA:
32 Which of the doctrines is regarded as Doctrine of constructive notice
unreal, as it fails to take note of the
business realities:
33 Which is an exception to the doctrine of Object clause and doctrine of ultra vires.
indoor management;
34 Which is not an exceptions to the rule Knowledge of irregularity.
of indoor management:
35 In case of a conflict between MOA & MOA prevails
AOA:
36 A public company should issue a Within 30 days after registration with the
prospectus within: Registrar

37 A subcriber, who purchases shares on Can rescind the contarct

the basis of mis-statement in the
prospectus:
38 A director on coming to know of the Will still be held liable
mis-statements in the Prospectus
withdraws his consent before the
prospectus was issued. He:

39 Who is not liable for mis-statement in Directors

the prospectus
40 The definition securities includes Shares
41 Prospectus may be in the form of Notice
42 Prospectus can be issued by Private Company
43 For non-compliance to the rules and INR 10,000- 1 Lakh
prospectus, the company shall be fined:

44 For mis-statements in prospectus Civil liability

remedy availbale is/are
45 For mis-statements in the prospectus: Class action suits can be filed
46 S.42 namely private placement was present in Act 1956.
47 Private placement under S. 42. Can be with regard to shares

48 Private placement is applicable to Private company

49 In calculating the number of person to Qualified institutional buyer included
whom private placement can be issued:

50 For private placement, money to be paid Cheque

in:
51 The value of invitation per person shall Not less than INR 10,000
be:

52 A member of a company means: A subscriber to MOA

53 A person who acquires shares on the Transfer

death of a shareholder, has acquired
shares by:
54 A person who transfer his shares to 1 year
another, remains in the 'B' list for:
55 A penalty for any default in the register Rs. 5, 000/- day of default
of members is:
56 Index of register has to be maintained 25
when the number of members is:

57 Documentary rights are conferred upon Constitution of India

the members by:
58 Privilege from personality immunity to Documentary rights
the member is covered under:
59 The legal position of a Director is that Employee
of:
60 Additional Director is appointed Shareholders
61 Where a Director absents himself from Is removed
three consecutive meetings of the Board
wthout valid reason, he :
62 The minimum number of directors 2
required for a public company:
63 A person cannot hold office of a 10 companies
director simultaneously in more than:
64 Additional directors appointed by the Till the next AGM
BOD can hold office:
65 Additional Director holds office till: Next AGM
66 Minimum number of director for OPC: 1

67 Under the Act 2013, share qualification True

for director is no longer required.

68 Resident director is required to be in Permanently

India for:
69 Number of the Independent Director for 1
a listed company
70 Which company to have a director for Private
small shreholders?
71 DIN is granted by: Central Government
72 KMP full form is Key Managerial Personnel
73 A company having paid up with share Chief Financial Officer
capital of INR 5 crore other than listed
company is required to have:

74 The gap between 2 AGM cannot exceed 6 months

:
75 Extra ordinary meeting is held to Any matter
transact:
76 Class meeting is a meeting of : Only directors
77 Quorum for a public company where 5
members upto 1000
78 Quorum for a public company where 5
members are above 5000 is:
79 Quorum for a private company is: 2
80 Extraordianry general meeting may be BOD
called by:
81 There is no quorum for OPC True
83 Tribunal can conduct meeting: True

84 Partnership is a result of: Status

85 Under the Partnership Act, business Every trade and occupation
includes
86 A partnership can be: Particular paternership
87 As per the law, which of the following Sharing of profits
is not a requisite of partnership:

88 Where the period of partnership is not Partnership at will

fixed, it is:
89 Which is not a consequence of non- Set off above rupees one thousand
registartion of firms:
90 In case of banking business, the 5
maximum number of partners
permissible is:
91 A partnership business where the A company
number of persons exceed than that
allowed under the partnership act will
be:

92 A nominal partner: Shares profits.

93 A registered firm is: A legal entity

94 Dissolution of the firm means: The firm is dissolved

95 Which of the following is not a
voluntary mode of disssoulation of the
firm?
96 Which is a mode of dissolution of the
firm by operation of law?
97 Which statement is incorrect?
By agreement
Some event making the partnership
business unlawful.
Death of a partner, dissolves the firm unless
otherwise agreed upon
98 Public notice is necessary: When an active partner retires.

99 Notice to the registrar on dissolution of If the firm is unregistered.

the frim is necessary:
100 Publication in the official gazette is When a registered frim is dissolved
necessary
101 LLP is goverend by: Indian Partnership Act, 1932

102 Which of the statement does not apply Liability of each partner is unlimited
to LLP, 2008?
103 Minimum number of designated 1
parteners necessary for LLP:
104 Registration of LLP is granted by: Collector of the district

105 Atleast one designated partner must be: A resident of India

106 Liability of partner in LLP is Limited

107 Notice to a partner is notice to the LLP: True

108 Rectification means An act approved by LLP done by a partner

with consent

109 A person not a partner but represents or

Holding out means allows to represented as a partner and credit
is given on the assumption
110 Number of ways of winding up of LLP 1

111 What is the monetory jurisdiction of Upto 1 lakhs

District Forum?
112 What is the statrting pecuniary Above 20 Lakhs
jurisdiction of State Commission ?
113 Where is the National Commission set Banglore
up ?
114 What is the minimum number of Four
women to be present in State
Commission ?
115 What is the qualification of the District Judge
President of District Forum ?
116 The period within which the district 3 Months
forum shall dispose-off the matter,
where laboratory analysis is required:
117 Which is the jurisdication the district Original jurisdication
forum does not have?
118 Appeal to the state commission can be 50% the amount of compensation ordered
filed by depositing by the district or Rs. 15,000/- whichever is
less

119 The National Commission shall 1 Months

endeavour to dispose of the matter
within
120 When a frivolous complaint is lodged, Upto Rs. 5000/-
penalty that can be imposed:
121 Competition Act, 2002, replaced: Indian Contract Act, 1872

122 Which is not an advantage of Offers variety of products

competition:
123 Number of anti - competitive 2
agreements as per the Act are:
124 Which does not amount to abuse of Impose unfair or discriminatory conditions
dominant position in purchase or sale of goods or services

125 Any combination that exceeds the Permitted by law

threshold limits of either the assests or
turnover specified by the Act is:
126 Competition advocacy is at the instance Central Government
of the
127 Competition Commision of India is set Central Governement
up:

128 IPR grants Status to the owner

129 IPR is broadly dividend into: 2
130 IPR rights is: National
131 Which statement is incorrect as regards Must be novel
patent:
132 Patent is granted for 10 years
133 In case of software related to a Patent
computer program, which IPR is
protected?
134 Patent can be granted to? Product
135 Patent cannot be granted for an True
invention that is frivolous
136 How many clauses of copyright are 7
there?
137 Adaptation of a novel amounts to True
violation of copyright:
138 Copyright is granted for broadcasting 20 years
139 Copyright exists in which of the Book
following works?
140 In case of software related to a Patent
computer program, which IPR is
protected?
141 Which is not protected by copyright? Book
142 As regards Trade mark which statement Identifies the product
is not appropriate;
143 Trade mark is transferable True
144 Which of the following can be Educational Institution
classified as a service mark ?
 OPTION B
MODULE - I
It is not a citizen.
The corporate veil will be pierced. Nothing can be done as the company is
If not adopted by the company
after incorporation, still the
company is liable.
The company cannot be wound up. The company is an illegal association
Two
Company is different from the
members who constitute it
False
Company exist so long as the
promoters live
Judicial interpretation
150 days
Does not acquire a corporate
personality.
When the company does not
refund the application money on
failure, to make allotment.
Binding on the company.
The shareholders are the agents
and trustees of the company.
Minimum capital required is
registered is Rs. 5 lakhs
Must issue a prospectus or
statement in lieu of the prospectus.
OPTION C OPTION D
It does not have perpetual succession. It can sue and be sued in its
own name.
None of the above happens.
registered.
The directors are personally liable. The shareholders become
liable.
The members become
personally liable.
Seven one person and one nominee
Company and shareholders are one and the (a) or (b)
same
Company exist so long as it is not wound Company exist till 1 director is
up alive
Cannot be lifted (a) and (b)
200 days Any time the company desires
Acquires a corporate personality depending Acquire a corporate personality
on the intention of the promoters. depending on the intention of
the government.
When the company acquires an enemy All the above
character.
Does not bind the company or the Binds the company, if the
promoters. matter falls within the object
clause.
The shareholders can enter into contracts The assets and liabilities of the
with the company. company are also the assets
and liabilities of the members.
Minimum 2 persons are required for Maximum number is
registration. unlimited.
Minimum Rs. 5 lakhs capital is necessary. Does not require registration
Minimum capital required is Rs.5 Minimum 2 persons are required for Maximum number is 200.
lakhs. registration.
Need not issue a prospectus or Minimum Rs.5 lakhs capital is necessary. Does not require registration.
statement in lieu of the prospectus.

By special resolution By becoming a subsidiary of a public All

company.
Within 1 year of registration Within 6 months of registration. Cannot ask, once registered.

Requires special resolution and Requires ordinary resolution and approval Requires special resolution and
approval of the Company Law of the Central government. approval of the Central
Board government.
Two months of its alteration. Three months of its alteration. Six months of its alteration.

The outsider, dealing with the The Central Government. The Company Law Board.
company
The Central Government. The company The Outsiders dealing with the
company.
MOA deals with the fundamental Anything done beyond MOA is a mere
conditions while AOA talks about irregularity while anything done beyond
internal regulations. AOA is null and void.

Preamble History Aims and objectives

Contains incidental objects
Regulations regarding the
administration of the company
Property belongs to the directors.
Other objects Talks about the profits of a
company.
Where the registered office of the company With the name of the company.
is situated
It is the asset of the company. Belongs to the shareholders.

Meetings Transfer and transmission of shares. Capital clause.

Doctrine of indoor management.

Doctrine of constructive notice Articles of Association Memorandum of Association.

Persons has read and understood Suspicion of irregularity. The act is outside the apparent
the MOA & AOA authority of the company.
AOA prevails. Directors shall decide. Both are not considered.

Within 45 days after registration Within 60 days after registration with the Within 90 days after
with the Registrar Registrar registration with the Registrar

Can claim for comepensation Can seek for purnishment of the directors All four remedies are available

Will not be held liable

Any person whose name appears in Expert Employee

the prospectus
Stock Debentures All the above
Circular Advertisement Document
Public Company Both
INR 50,000- 1 Lakh INR 50,000- 1 Lakh INR 50,000- 3 Lakh

Criminal Liability Other liability All the above

Only individual suits can be filed Both Available

Incorporated only in Act 2013 Present in both Act, 1956 and Act 2013
Can be with regard to debentures Can be with regard to securities None of the above

Public company Listed company Unlisted company

Employees under employees stock Both included Both excluded
option included

Draft Cash (a) or (b)

Not Less than INR 20,000 Not more than INR 20,000 Any amount

MODULE II

A person who has agreed to A person holding equity shares A creditor

become a member
Transmission Allotment Estoppel

2 years 3 years 4 years

Rs. 2,500/ day of default Rs. 1,000/- day of default Rs. 500/- day of default

50 75 100

Companies act Partnership Act MOA & AOA

Proprietory rights Statutory rights Remedial rights

Managing partner Agent Trustee

By the Board of Directors Appointed by the third parties By the Central Government
Vacates the office Is disqualifed Continues in the office.

3 5 7

12 companies 15 companies 20 companies

For 1 Year For 2 years At the discretion of the BOD

BOD desires 2 years As long as he wants

2 3 Any

False

At least for 182 days in the At least for 182 days in his lifetime At least for 240 days in the
previous calender year previous calender year
2 At least 1/3rd the total number of directors Any

Public Listed Company All companies

State Governement Company of which he is a director Tribunal

Chief executive Officer Manager Company Secretary

12 months 15 months 18 months

Urgent matter that cannot wait till Matter decided by the Manging Director
the next AGM
Particular class of members Of all shareholders Of all debenture holders
10 15 30

10 15 30

5 10 15
By board at the instance of By requisitionists themselves All
members
False
False

MODULE III

Contract Circumstances None of the above

Every trade and profession Every profession and occcupation Every trade, occuption and
profession
Partnership at will Partnership for fixed term All the above
Sharing of loss Mutual agency Carrying on a business

Particular partnership Partnership for a fixed tenure Hindu undivided family

Partner cannot bring an action Firm cannot bring an action aginst the third Partner can ask for dissolution
aginst the firm party. of the firm
10 15 20

A partnership Illegal assocition None of the above

Is liable to third party (a) & (b) Neither shares profits nor is he
liable
A company Not a separate legal entity different from its None of the above
partners
The partnership is dissolved (a) & (b) None of the avove
Some event making the business By consent By notice
unlawful if carried on in
partnership.
Insanity of a partner. Business undergoing losses. just & equitable ground

On dissolution of the firm, public Any incapacity of a partner, will make the A firm gets dissolved when all
notice is required. court to dissolve the firm but one partner become
insolvent.
When the firm is dissolved When a minor admitted to the benefits of All the above
partnership, decided to become a partner.

If the firm is registered. In both cases (a) & (b)

When an unregistered firm is (a) & (b)

dissolved
Limited Liability Partnership, 2008 Companies Act,1956 Indian Contarct Act, 1872

No limit as to maximum number LLP has perpetual succession Liability of the each partner is
limited
2 3 4

Registrar of Co-operative Societies Registrar of Companies Registrar of firms

Resident of a foreign country

Unlimited As per the agreement

False Only in an emergency

An act approved by LLP done by a An act done by a partner with consent and An illegal act done by a partner
partner without authority. also approved by LLP without authority and approved
by LLP

A LLP pretends to be a partner and A partner takes credit from an outsider

credit is given to the LLP representing that he has authority from LLP
2 3 4

MODULE IV

Upto 5 lakhs Upto 20 lakhs Upto 25 lakhs

Above 5 lakhs Above 10 lakhs Above 15 lakhs

Bombay Delhi Chennai

Three Two One

High Court Judge Superme Court Judge Magistrate

5 Months 9 Months 12 Months

Monetary jurisdication Territorial jurisdication Appellate Jurisdication

50% the amount of compensation 50% the amount of compensation ordered 50% the amount of
ordered by the district or Rs. by the district or Rs. 25,000/- whichever is compensation ordered by the
20,000/- whichever is less less district or Rs. 30,000/-
whichever is less

3 Months 5 Months 6 Months

Upto Rs. 10,000/- Upto Rs. 15,000/- Upto Rs. 25,000/-

The Companies Act, 1956 Partnership Act, 1932 Monopolies Trade Practices
Act, 1969
Improves in quality of services There is lowering of prices Less foreign investment

4 6 9

Affects the price in purchase or Restricts production of goods or affects Grants free access to market
sale of goods or services. services or markets

Is void

State Governement Local Authority Consumer

State Governement Local Authority By the contesting parties

MODULE V

It’s a title Grants ownership rights Does not grants anything

3 4 5
International
Must not be obvious Must have indistrial application Can be granted for reserch

15 years 20 years 25 years

Trademark Copyright (a) (b) and (c)

Process Both None

False

6 5 4
False

25 years 60 years Perpetuity

Sound Recordings Cinematograph Computer software

Trademark Copyright (a) (b) and (c)

Drama Piece of architecture Novel Process

Qualifies its unchanged quality Advertises the product Enables to make the goods
appealable
False
Hotels Beauty salon (a) and (b)
OPTION E
All the above

All the above

All
(a), (b) and (c)

All of them
(a) and (c)
All

(a) and (c)

All