Legal Aspects Of Business - Practice Test

[#166] Certificate to commence business is essential for

(A) a public company

(B) a private company

(C) Both A and B

(D) None of these

Correct Answer

(A) a public company

[#167] Under the Companies Act, 1956, a private company must have at least

(A) Seven Directors

(B) Three Directors

(C) Two Directors

(D) One Director

Correct Answer

(C) Two Directors

[#168] When is the communication of proposals, the acceptance of proposals and the revocation of proposals deemed to be made?

(A) Only on clear verbal communication of such proposal, acceptance or revocation

(B) By any act or omission of the party by which he intends to communicate such proposal, acceptance or revocation or has the effect of communicating it

(C) Only when the proposal, acceptance or revocation of the proposal is recorded in writing

(D) Only when the proposal, acceptance or revocation of the proposal is received and understood by the other party receiving the information

Correct Answer

(B) By any act or omission of the party by which he intends to communicate such proposal, acceptance or revocation or has the effect of communicating it

[#169] Which of the following points compare negotiated instruments and assignment?

(A) Negotiation requires delivery only to constitute a transfer, whereas assignment requires a written document signed by the transferor

(B) Consideration is always presumed in the case of transfer by negotiation. In the case of assignment consideration must be proved

(C) In case of negotiation, notice of transfer is not necessary, whereas in the case of assignment notice of the transfer must be given by the assignee to the debtor

(D) All of the above

Correct Answer

(D) All of the above

[#170] Which of the following is an exception to the Doctrine of Constructive Notice:

(A) Doctrine of Ultra Vires

(B) Doctrine of Distinct Entity

(C) Doctrine of Indoor Management

(D) Lifting the Corporate Veil

Correct Answer

(C) Doctrine of Indoor Management

Legal Aspects Of Business - Study Mode

[#166] Certificate to commence business is essential for

Correct Answer

[#167] Under the Companies Act, 1956, a private company must have at least

Correct Answer

[#168] When is the communication of proposals, the acceptance of proposals and the revocation of proposals deemed to be made?

Correct Answer

[#169] Which of the following points compare negotiated instruments and assignment?

Correct Answer

[#170] Which of the following is an exception to the Doctrine of Constructive Notice:

Correct Answer