Mercantile Law 2006-Solved MCQs RSET Set 2

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(11) Which of the following actions requires the unanimous consent of all partners before it may be undertaken?

(a) Hiring a new employee

(b) Purchasing new office equipment;

(c) Admitting new partners;

(d) None of these

Answer: (a)

(12) An Order Instrument is the one which is payable to:

(a) A named person;

(b) To a bearer;

(c) To both

(d) None of these

Answer: (a)

(13) A bearer Instrument is the one which is payable to:

(a) A named person;

(b) To a bearer;

(c) To both;

(d) None of these

Answer: (b)

(14) A holder in due course is the one:

(a) Who finds an instrument;

(b) Who steals an instrument;

(c) Who gets an instrument as a gift;

(d) None of these

Answer: (d)

(15) For the incorporation of a limited liability company filing of Memorandum of Association is

essential:

(a) For a public limited company only;

(b) For a private limited company, a public limited company and an unlimited company;

(c) For a Public Limited company only;

(d) None of these

Answer: ()

(16) A subsidiary company is the one:

(a) Which holds the majority shares of another company;

(b) Which deals in the trading of shares of other companies;

(c) In which the majority shares are held by another company;

(d) None of these

Answer: (c)

(17) A is considering different forms of business organization for his business. For the purposes

of owning property and being a party to litigation, forms which are legal entities separate from

their owners include:

(a) Limited Partnership only;

(b) Private Limited Companies only;

(c) Both Private and Public Limited Companies

(d) None of these

Answer: (c)

(18) A decision made by arbitrators is called:

(a) Sentence;

(b) Award;

(c) Judgment

(d) None of these

Answer: (b)

(19) An empire in an arbitration reference is appointed when the number of arbitrators is:

(a) Odd; (b) Even;

(c) More than 10.

(d) None of these

Answer: ()

(20) The appointment of a person of the minor age as an agent is:

(a) Void;

(b) Valid;

(c) Voidable

(d) None of these

Answer: (b)

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