BUNDELKHAND UNIVESITY, JHANSHI INSTITUTE OF

ECONOMICS, BANKING FINANCE

ASSIGNMENT OF- COPORATE LEGAL FRAMWORK

SUBMIT TO- PRIYNKA AGRWAAL
SUBMITTED BY – MANSI VISHNOI
FROM – M.COM ( FINANCE ) 4TH
SEMESTER
ROLL NO. 221145045010
Q1. The persons who sign the memorandum of association of company are
called:
1. Shareholders
2. Directors
3. Subscribers to memorandum of association
4. Promoters
Q2. Every company has to file with registrar, a copy of
1. Articles of association
2. Prospectus
3. Memorandum of association
4. None of the above
Q3. Memorandum of association is/are
1. Internal rules of the company
2. Guidelines for board of directors
3. Agreement between company and board of directors
4. Charter of the company
Q4. What is the mandatory rotation period for auditors in companies
1. 5 years
2. 10 years
3. 15 years
4. 20 years
Q5. Internal audit is compulsory for companies having turnover exceeding
1. 50 crores
2. 100 crores
3. 150 crores
4. 200 crores
Q6. Financial statement of companies shall be prepared as per the forms
prescribed in schedule off companies act 2013 which section of the companies
act 2013 prescribe the same?
1. Section 129
2. Section 132
 3. Section 130
4. Section 131
Q7. Maximum permitted capital of the company is known as:
a) Authorized capital
b) Issued capital
c) Subscribed capital
d) Called of capital

Q8. Equity shareholders and preference shareholders are:

a) Members OR owners.
b) Creditors.
c) Customers of the company.
d) Lenders
Q9. A public limited company cannot issue:
a) Equity shares
b) Preference shares
c) Sweat Equity Shares
d) Deferred shares
Q10. The portion of the authorized capital which can be called-up only on the
liquidation of the company is called:
a) Authorized capital.
b) Reserve capital.
c) Issued capital.
d) Called up capital.
Q11. Premium on issue of shares cannot be used for:
a) Premium on redemption of preference shares
b) Issue of bonus shares.
c) Remuneration to management.
d) For writing of preliminary expenses
Q12. Premium on issue of shares can be used for:
a) To buy back its own shares
b) Issue of bonus shares.
c) For writing of preliminary expenses
Q13. Where the price is not determined by the parties to the contract of sale
of goods, what price shall be paid by the buyer:
a. The buyer shall pay the seller a reasonable price.
b. The buyer shall determine the price at his discretion.
c. The seller shall determine the price at his discretion.
d. The seller shall charge the price according the market forces.
Q14. When a seller can stop the goods in transit:
a. When the buyer of the goods informs that he will make payment after
some time
b. The seller has no right to stop the goods in transit.
c. When the buyer of goods becomes insolvent and goods are in transit.
d. When the buyer informs that he is now not in need of the goods.
Q15. Where there is a contract for the sale of specific or ascertained goods the
property in them is transferred to the buyer:
a. At such time as the parties to the contract intend it to be transferred
b. At such time as the buyer only intend it to get it transferred.
c. It depends upon the circumstances of the case.
d. At such time as the seller only intend it to transfer to the buyer.
Q16. A seller of goods shall be deemed to be an “unpaid seller”:
a. When a bill of exchange or other negotiable instrument has been received
as conditional payment, and the condition on which it was received has
not been fulfilled by reason of the dishonour of the instrument or
otherwise.
b. A seller who has obtained money decree for the price of the goods is still an
unpaid seller, if the decree has not been satisfied.
c. When the whole of the price has not been paid or tendered.
d. All of the above.

Q17. When a buyer can sue the seller:

a. He may ask for the specific performance, if this being the part of the
contract.
b. He may initiate for the breach of the warranty.
c. He may initiate suit for delivery of the goods, if not delivered.
d. All of the above.
Q18. A condition is a stipulation to the main purpose of the contract, the
breach of which gives rise to a right to treat the contract as repudiated.
a. Not essential
b. Not collateral
c. Essential
d. Collateral
Q19. Offences under the Negotiable Instrument Act 1881 are considered-
1. Compoundable
2. Non- compundable
3. Either 1 or 2
4. None of the above
Q20. The offences under Chapter XVII of the Negotiable Instrument Act, 1881
shall be tried by -
1. Judicial
2. Judicial magistrate first class
3. Metropolitan magistrate
4. Both 2 and 3
Q21. How many parties are involved in a promissory note?
1. One
2. Two
3. Three
4. Four

Q22. Negotiable instrument means-

1. a promissory note
2. Bill of exchange
3. Payable Cheque
4. All of them
Q23. Where the endorser signs his name on the back of the instrument only,
the endorsement is said to be:
1. In full
2. In blank
3. Facultative endorsement
4. Conditional endorsement
Q24. Which of the following section of Negotiable "Cheque"?
1. Section 4
2. Section 5
3. Section 7
4. Section 6
Q.25.The Sale of Goods Act, 1930 extends to:

a. The whole of India ( Except the Union Territories)

b. The State of Jammu & Kashmir
c. The whole of India (except the State of Jammu & Kashmir)
d. The whole of India

Q.26. Transfer of immovable property is regulated by:

a. The Indian Contract Act, 1872

b. The Sale of Goods Act, 1930
c. The Transfer of Property Act, 1882
d. None of the above
Q.27. The price in a contract of sale may be:

a. Left to be fixed in an agreed manner

b. Determined by the course of dealing between the parties.
c. Fixed by the contract itself
d. All of the above

Q.28. Whether the stipulation of time in a contract of sale of goods is essential:

a. Time is not the essence in the contract of sale of goods, unless a different
intention appears from the contract.
b. Time may be of the essence of the contract but this essentially depends on
the terms of the contract.
c. Time is the essence in the contract of sale of goods.
d. Both B and C are correct.

Q.29. There is an implied undertaking in a contract of sale of goods that:

a. The goods shall be free from any charge or encumbrance.

b. The buyer shall have and enjoy quiet possession of the goods.
c. Both A and B are correct
d. None of the above

Q.30. What are the rights of an unpaid seller:

a. a right of re-sale as limited by this Act.

b. a lien on the goods for the price while he is in possession of them
c. in case of the insolvency of the buyer a right of stopping the goods in
transit after he has parted with the possession of them.
d. All of the above.

Q.31. A stipulation in a contract of sale with reference to goods which are the
subject thereof may be:

a. A condition or warranty
b. A conditions and warranty both
c. A warranty
d. A condition
Q.32.The existing goods may be:

a. Unascertained
b. Specific or generic
c. As certained
d. All of the above

Q.33. “Specific goods” means:

a. Goods identified and agreed when actual sale is made.

b. Goods identified and agreed upon at the time a contract of sale is made.
c. Goods to be identified only when the buyer is making cash purchases.
d. Goods identified at the time a contract of sale is made

Q.34. Where under a contract of sale the property in the goods is transferred
from the seller to the buyer, the contract is called, but where the transfer of
the property in the goods is to take place at a future time or subject to some
condition thereafter to be fulfilled, the contract is called

a. A Sale/an agreement to sell

b. Conditional sale/ absolute sale
c. An agreement to sell/sale
d. Absolute sale/conditional sale

Q.35. A contract of sale of goods is a contract whereby the seller:

a. Transfers or agrees to transfer the property in goods to the buyer for a

price. There may be a contract of sale between one part- owner and
another.
b. Transfers or agrees to transfer the property in goods to the buyer for a
price.
c. Transferred or agreed to transfer the property in goods to the buyer for a
price. There may be a contract of sale between one part-owner and
another.
d. Actual transfers of the property in goods to the buyer for a price
Q.36. Future goods’ means:

a.Goods to be manufactured or acquired from the third person by the seller

after making of the contract of sale.
b.Goods to be manufactured or produced or acquired by the seller after
making of the contract of sale.
c. Goods to be manufactured or produced by the seller after making of the
contract of sale.
d.Goods to be acquired by the seller after making of the contract of sale

Q.37. “Mercantile agent” means:

a. A mercantile agent having in the customary course of business as such

agent authority either to sell goods, or to consign goods for the purposes
of sale.
b. A mercantile agent having in the customary course of business as such
agent authority either to sell goods, or to consign goods for the purposes
of sale, or to buy goods, or to raise money on the security of goods.
c. A mercantile agent having in the customary course of business as such
agent authority either to sell goods.
d. A mercantile agent having in the customary course of business as such
agent authority either to sell goods, or to consign goods for the purposes
of sale, or to buy goods.

Q.38. In the case of a contract for sale by sample there is an implied condition:

a. That the buyer shall have a reasonable opportunity of comparing the bulk
with the sample;
b. That the goods shall be free from any defect, rendering them
unmerchantable, which would not be apparent on reasonable examination
of the sample.
c. That the bulk shall correspond with the sample in quality;
d. All of the above

Q.39. When goods are delivered to the buyer on approval or “on sale or
return” or other similar terms, the property therein passes to the buyer:
 a)if he does not signify his approval or acceptance to the seller but retains the
goods without giving notice of rejection, then, if a time has been fixed for
the return of the goods, on the expiration of such time,
b) if no time has been fixed, on the expiration of a reasonable time.
c)when he signifies his approval or acceptance to the seller or does any other
act adopting the transaction
d) All of the above

Q.40. When the lien exercised by the unpaid seller come to an end:

a) When the buyer or his agent lawfully obtains possession of the goods.
b) By waiver thereof.
c) When he delivers the goods to a carrier or other bailee for the purpose of
transmission to the buyer without reserving the right of disposal of the
goods.
d) All of the above.

Q.41. There is an implied undertaking in a contract of sale of goods that:

a) The goods shall be free from any charge or encumbrance.

b) The buyer shall have and enjoy quiet possession of the goods.
c) Both A and B are correct
d) None of the above

Q.42. An agreement to sell becomes a sale:

a) When the time elapses or the conditions are fulfilled subject to which
the property in the goods is to be transferred.
b) When the conditions are not fulfilled even after the elapse of time, subject
to which the property in the goods is to be transferred
c) When the conditions are fulfilled subject to which the property in the
goods is to be transferred.
d) When the time elapses or the conditions are fulfilled

Q.43. When the goods are said to be in a “delivered state”:

a) When the seller is ready to deliver the goods.

b) When they are in such state that the buyer would under the contract be
bound to take delivery of them.
c) When the seller and buyer both are ready give and take the possession of
the goods.
d) When the buyer is ready to purchase the goods.
Q.44. The Sale of Goods Act, 1930 extends to:

a) The whole of India( Except the Union Territories)

b) The State of Jammu & Kashmir
c) The whole of India(except the State of Jammu & Kashmir)
d) The whole of India

Q.45 Transfer of immovable property is regulated by:

a) The Indian Contract Act, 1872

b) The Sale of Goods Act, 1930
c) The Transfer of Property Act, 1882
d) None of the above

Q.46 The price in a contract of sale may be:

a) Left to be fixed in an agreed manner

b) Determined by the course of dealing between the parties.
c) Fixed by the contract itself
d) All of the above