Legal Aspects of Business MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11

1.
Goods which get input tax credit without being liable to collect output tax is called:

A. Exempt goods

B. White goods

C. Sin goods

D. Zero rated goods

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2.
Under which articles of Companies Act,2013, it is not necessary for every company to have its own articles?

A. Articles 5(1) and 7(1)

B. Articles 3(1) and 7(1)

C. Articles 6(1) and 7(1)

D. Articles 5(2) and 7(2)

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3.
Which of the following statements are true in context of a company under Company Act, 2013?
1. A member of a company must be a shareholder of a company.
2. Proxies are not to be included while counting the quorum of a meeting of a company.
3. The maximum number of directors in a public as well as private company is 15.
4. In case of a private company, there is no restriction to transfer the shares.

A. 1, 2 and 3

B. 2 and 3

C. 1 and 3

D. 1, 2, 3 and 4

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4.
Which was the State in which local authorities started providing people access to certain information related to the 'Public Distribution System' (PDS) even before the State Assembly introduced/passed an RTI Act?

A. West Bengal

B. Rajasthan

C. Madya Pradesh

D. Kerala

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5.
What can be the maximum strength of the Information Commissioners?

A. 5

B. 7

C. 10

D. 12

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6.
Reduction of share capital of a company can be effected by:

A. Reducing the amount of authorised capital of the company

B. Reducing face value of the shares is used

C. Paying off paid up share capital which is in excess of requirement

D. Cancelling paid up share capital which has been lost over the years

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7.
What is the term for an independent director to hold office?

A. 2 years

B. 3 years

C. 5 years

D. 7 years

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8.
A contract in which the consent of one of the parties is obtained by coercion, undue influence, misrepresentation or fraud till the aggrieved party complains can be called:

A. Contingent Contract

B. Contracts for Executed Consideration

C. Quasi Contract

D. Void Contract

E. Voidable Contract

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9.
Which of the following acts are administered by ministry of corporate affairs?
1. Companies Act, 2013
2. Limited Liability Partnership Act, 2008
3. Competition Act, 2002
Identify the correct statements.

A. Only 1

B. Only 2

C. Both 1 and 3

D. All of the above

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10.
Which one of the following statements is false?

A. Effective dividend policy is an important tool to achieve the goal of wealth maximisation

B. According to Walter, the optimal payout ratio for a growth firm is 100%

C. MM model asserts that the value of the firm is not affected whether the firm pays dividend or not

D. Bird-in-the-hand theory' in reference to dividend decision has been developed by Myron Gordon

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Legal Aspects of Business MCQ Questions and Solutions with Explanations | Commerce

1. Goods which get input tax credit without being liable to collect output tax is called:

Answer & Solution

2. Under which articles of Companies Act,2013, it is not necessary for every company to have its own articles?

Answer & Solution

Answer & Solution

4. Which was the State in which local authorities started providing people access to certain information related to the 'Public Distribution System' (PDS) even before the State Assembly introduced/passed an RTI Act?

Answer & Solution

5. What can be the maximum strength of the Information Commissioners?

Answer & Solution

6. Reduction of share capital of a company can be effected by:

Answer & Solution

7. What is the term for an independent director to hold office?

Answer & Solution

8. A contract in which the consent of one of the parties is obtained by coercion, undue influence, misrepresentation or fraud till the aggrieved party complains can be called:

Answer & Solution

9. Which of the following acts are administered by ministry of corporate affairs? 1. Companies Act, 2013 2. Limited Liability Partnership Act, 2008 3. Competition Act, 2002 Identify the correct statements.

Answer & Solution

10. Which one of the following statements is false?

Answer & Solution

Read More Section(Legal Aspects of Business)

1.
Goods which get input tax credit without being liable to collect output tax is called:

2.
Under which articles of Companies Act,2013, it is not necessary for every company to have its own articles?

4.
Which was the State in which local authorities started providing people access to certain information related to the 'Public Distribution System' (PDS) even before the State Assembly introduced/passed an RTI Act?

5.
What can be the maximum strength of the Information Commissioners?

6.
Reduction of share capital of a company can be effected by:

7.
What is the term for an independent director to hold office?

8.
A contract in which the consent of one of the parties is obtained by coercion, undue influence, misrepresentation or fraud till the aggrieved party complains can be called:

9.
Which of the following acts are administered by ministry of corporate affairs?
1. Companies Act, 2013
2. Limited Liability Partnership Act, 2008
3. Competition Act, 2002
Identify the correct statements.

10.
Which one of the following statements is false?