Legal Aspects Of Business - Study Mode

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[#101] A engages B as clerk to collect money for him. B fails to account for some of his receipts and A in consequence calls upon him to furnish security for his duly accounting. A does not acquaint C with B's previous conduct. B afterwards makes default.

(A) The guarantee is not invalid

(B) The guarantee is partly invalid

(C) The guarantee is invalid

(D) None of the above

Correct Answer

[#102] For mis-statement in a company prospectus, the auditor liability incurs

(A) Civil liability

(B) Criminal liability

(C) Contractual liability

(D) None of the above

Correct Answer

(D) None of the above

[#103] What happens to a continuing guarantee in case of surety's death?

(A) Indemnification from the property of the surety with regard to future transactions

(B) Revocation of the continuing guarantee with regard to future transactions

(C) The continuing guarantee shall continue in the name of the surety's heirs

(D) The continuing guarantee shall be continued by any other person

(E) Indemnification from the property of the surety with regard to future transactions

(F) Revocation of the continuing guarantee with regard to future transactions

(G) The continuing guarantee shall continue in the name of the surety's heirs

(H) The continuing guarantee shall be continued by any other person

Correct Answer

(B) Revocation of the continuing guarantee with regard to future transactions
(F) Revocation of the continuing guarantee with regard to future transactions

[#104] Which of the following is beyond the powers of the Board of Directors?

(A) To issue debentures

(B) To make loans

(C) To remit the payment of any debt due by a director

(D) To issue prospectus

Correct Answer

[#105] For an e-commerce operator, GST registration threshold limit is

(A) Rs. 20 lakh

(B) Rs. 50 lakh

(C) Rs. 75 lakh

(D) None of these