Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Business Laws and Ethics Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Under the Companies Act, 2013, which section defines a “Small Company”? Section 2(85) Section 2(68) Section 2(20) Section 2(72) None 2. Which of the following is a feature of a "Crossed Cheque"? It can be cashed directly It can only be deposited into a bank account It is valid only for a day It has no transferability None 3. Which of the following is NOT a feature of a contract of indemnity? Involves two parties Promise to save another from loss Covers only past losses Governed by the Indian Contract Act, 1872 None 4. The purpose of the Consumer Protection Act, 2019 is to: Promote consumer awareness Eliminate all disputes Reduce competition Promote sales None 5. Who appoints the first auditor of a company other than a government company? Board of Directors Shareholders Registrar of Companies Central Government None 6. The minimum subscription under the Companies Act, 2013 must be received within: 30 days from the issue of the prospectus 60 days from the issue of the prospectus 90 days from the issue of the prospectus 120 days from the issue of the prospectus None 7. The "Rule of Law" in ethics means: Every individual is subject to the same laws Businesses can bypass laws for profit Special rules apply to influential individuals Laws do not apply to businesses None 8. The Doctrine of Ultra Vires applies to: Acts outside the authority of the company Acts within the authority of the company All legal agreements Acts done in bad faith None 9. The "Golden Rule" in ethics is: Treat others as you want to be treated Always seek personal gains Avoid legal obligations Profit above all None 10. Which section of the Indian Partnership Act, 1932 deals with the dissolution of a firm? Section 35 Section 39 Section 45 Section 50 None 11. Which section of the Companies Act, 2013 deals with Annual General Meetings? Section 92 Section 96 Section 101 Section 110 None 12. Which type of meeting is mandatory for listed companies under the Companies Act, 2013? Board Meeting Annual General Meeting Class Meeting Statutory Meeting None 13. What is the purpose of a prospectus issued by a company? To invite subscriptions for shares To outline the duties of directors To define the objectives of the company To prepare annual reports None 14. The term “Fraud” under the Indian Contract Act, 1872 includes: Concealment of facts Promise made without intention to perform Active concealment of facts by one party All of the above None 15. A "holder in due course" under the Negotiable Instruments Act, 1881 means: Any holder of a negotiable instrument A person who receives the instrument for consideration and in good faith A person who holds the instrument after its maturity A person who receives the instrument as a gift None 16. Which section of the Companies Act, 2013 deals with the issue of bonus shares? Section 63 Section 65 Section 69 Section 1 None 17. What is the penalty for dishonor of a cheque under Section 138 of the Negotiable Instruments Act, 1881? Fine up to double the amount of the cheque or imprisonment up to 2 years Fine up to 50% of the cheque amount or imprisonment up to 1 year Fine up to ₹1 lakh or imprisonment up to 6 months Fine up to double the amount of the cheque or imprisonment up to 5 years None 18. Which section of the Indian Contract Act, 1872 deals with "Contingent Contracts"? Section 28 Section 31 Section 40 Section 50 None 19. Under the Companies Act, 2013, which resolution is required for altering the Memorandum of Association? Ordinary Resolution Special Resolution Unanimous Resolution None of the above None 20. What is the penalty for failure to repay deposits under the Companies Act, 2013? Fine up to ₹1 crore or imprisonment up to 3 years Fine up to ₹50 lakh or imprisonment up to 2 years Fine up to ₹10 lakh or imprisonment up to 5 years Fine up to ₹25 lakh or imprisonment up to 1 year None 21. Which of the following is a core principle of business ethics? Profitability above all Respect for stakeholders Ignoring social responsibilities Tax evasion None 22. Which ethical theory focuses on virtues and moral character? Utilitarianism Virtue Ethics Deontology Egoism None 23. What is the primary objective of whistleblowing? To expose unethical or illegal activities To create internal conflicts To harm the company’s reputation To gain monetary benefits None 24. An ethical organization prioritizes: Stakeholder interests over profitability Profitability over stakeholders Avoiding legal compliance Exploiting resources None 25. What is the ethical dilemma faced when employees are overworked but the company benefits financially? Transparency vs. Privacy Short-term gain vs. Long-term sustainability Fair treatment vs. Financial goals Respect vs. Harassment None 26. Which ethical principle emphasizes confidentiality of sensitive information? Integrity Justice Fidelity Transparency None 27. The term "Sustainability" in business ethics refers to: Increasing profits indefinitely Managing resources responsibly for future generations Avoiding competition Reducing operational costs None 28. Which of the following is a violation of workplace ethics? Equal pay for equal work Discrimination based on gender Providing a safe working environment Transparency in job appraisals None 29. Which of the following is an ethical issue in global business operations? Exchange rate fluctuations Exploitation of cheap labor in developing countries Currency devaluation Compliance with international trade laws None 30. The ethical concept of "Non-Maleficence" emphasizes: Avoiding harm to others Doing good for others Maximizing profits Respecting authority None 31. Which section of the Companies Act, 2013 deals with Directors’ Duties? Section 166 Section 150 Section 132 Section 125 None 32. What is "Doctrine of Constructive Notice"? All parties are deemed to have knowledge of the public documents of a company Only shareholders are required to inspect company documents Directors are exempt from disclosing company details Companies are not obligated to share public documents None 33. Which of the following statements is true about Limited Liability Partnerships (LLPs)? They cannot raise funds from the public They have unlimited liability They do not require registration Partners’ liability is not limited None 34. Under the Indian Contract Act, 1872, a contract can be discharged by: Performance Agreement Impossibility of performance All of the above None 35. Which section of the Consumer Protection Act, 2019 allows complaints to be filed online? Section 24 Section 35 Section 39 Section 47 None 36. Which of the following is NOT a feature of CSR under Section 135 of the Companies Act, 2013? Applicable to companies with a net profit of ₹5 crore or more Mandatory for all private companies Requires allocation of 2% of average net profits Requires a CSR committee in qualifying companies None 37. The "Doctrine of Lifted Corporate Veil" is applied to: Protect directors from personal liability Make individuals behind the company liable for fraudulent acts Ensure the company complies with CSR requirements Prevent competition between companies None 38. Which of the following is NOT a mode of dissolution of a partnership firm? Mutual agreement Compulsory dissolution by law Death of a partner Conversion into a company None 39. A "Special Resolution" requires approval by: At least 50% of the members present At least 75% of the members present and voting At least 90% of the total members Unanimous approval by all members None 40. Which of the following contracts is void under the Indian Contract Act, 1872? Contract made without free consent Contract with a minor Contract with lawful consideration Contract for sale of goods None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! 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