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This set of Business Law Multiple Choice Questions & Answers (MCQs) focuses on Business Law Set 2

Q1 | Which of the following is not a negotiable instrument
  • Bill of exchange and cheque
  • Postal Order & Currency note
  • Promissory note and cheque
  • Promissory note & Bill of exchange
Q2 | Features of Negotiable instruments are -
  • Written and signed
  • Recovery
  • Freely transferable
  • All of the above
Q3 | Holder in due course means any person-
  • Drawing the instrument
  • who for consideration became the possession of promissory note
  • to whom order the money is directed to paid
  • none of the Above
Q4 | Cheque can be of types and crossing of cheques can be of types.
  • three, two
  • two, two
  • two, three
  • three, three
Q5 | What are the limits of number of members in a Private Company?
  • Fifty
  • Seven
  • Twenty
  • Two hundred
Q6 | A public company must have at least————- directors whereas a private company must have at least ——————-
  • 3;2
  • 23
  • 25
  • 810
Q7 | The registered office clause of memorandum of association contains
  • The name of the state in which the registered office of the company is to
  • The name of the city/town only and not that of the state.
  • The name of registrar of companies
  • The complete postal address.
Q8 | Which documents contains the regulations relating to the internal management of a
  • Memorandum of Association
  • Articles of Association
  • Both (a) and (b)
  • None
Q9 | ………….meeting is the first meeting of the members of the public company after
  • board
  • annual general
  • departmental
  • statutory
Q10 | Who can endorse the negotiable
  • Maker of the
  • older of the
  • Drawee
  • Both of A and B
Q11 | A Bill of exchange contains —
  • Conditional undertaking
  • Unconditional undertaking
  • Unconditional order
  • Conditional order
Q12 | Memorandum of Association does notinclude.
  • SubscriptionClause.
  • Capital Clause.
  • Liability Clause.
  • Assets Clause.
Q13 | Quorum for general meeting for private and public companies.
  • 2 and 5.
  • 3 and 6.
  • 5 and 7.
  • None of these.
Q14 | What do you mean by symbolic possession?
  • Delivery of keys of lock of godown where the goods
  • Conditional promise to delivery.
  • Actual Delivery.
  • None of these
Q15 | What does Caveat emptor means?
  • beware agent
  • beware customer
  • beware trader
  • beware seller