CMA INTERMEDIATE EXAMINATION
Paper 6 Laws and Ethics
A. Choose the most appropriate alternative for the following
(i) Anu threaten to kidnap
Binu's daughter if she does not sell her house worth Rs. 90 Lakh to her for Rs.
20 Lakh. This Contract is
void due to—
a)
inadequacy
of Consideration.
b)
absence
of Free Consent.
c)
incompetence
of Parties.
d)
None
of the above.
(ii) The Latin Maxim
"Nemo Dat Quod non Habet" means
a)
no man
can pass a better title than he has.
b)
let
the Buyer beware.
c)
no
consideration – No contract.
d)
ignorance
of law is no excuse.
(iii) As per the RBI Act,
which of the following negotiable Instruments can be payable to the bearer on
demand?
a)
Cheque.
b)
Hundi.
c)
Bank
Draft.
d)
Promissory
Note.
(iv) When a partnership firm
is continued even after the expiry of fixed term, it is called
a)
Partnership
at Will.
b)
Perpetual
Partnership.
c)
Fixed
Partnership.
d)
Particular
Partnership.
(v) The amount of gratuity
payable to an employee shall not exceed
a)
Ten
months’ pay.
b)
Twelve
months’ pay.
c)
Twenty
months’ pay.
d)
Twenty-five
months’ pay.
(vi) No female child shall be
allowed to work in any factory except between
a)
8 AM to
7 PM.
b)
6 AM
to 6 PM.
c)
6 AM
to 7 PM.
d)
10 AM
to 5 PM.
(vii)In case of a private
company, mention the number of members personally present to form the quorum of
a meeting of the company.
a)
One
member.
b)
Two
members.
c)
Three
members.
d)
Four
members.
(viii)Which of the following
is not a valid medium of sending notice to all shareholders?
a)
By
registered post or speed post.
b)
Through
public advertisement.
c)
Through
registered email-id.
d)
Through
courier service.
(ix) If any default is made in
filing refund of money, the company and every officer, who is in default shall
be liable to a penalty maximum up to
a)
Rs. 50,000.
b)
Rs. 75,000.
c)
Rs. 1,00,000.
d)
Rs. 1,25,000.
(x) Value chain as a strategic
framework for analysis of competitive advantaged was promoted by
a)
Peter
Drucker.
b)
F. W.
Taylor.
c)
Michael
Porter.
d)
Tom
Peters.
B. Choose the most appropriate alternative for the following
(i) The main feature of e-contract
is
a)
Cost and acceptability.
b)
Purity and clarity.
c)
Speed, accurate and reliable.
d)
Perfection and attractive.
(ii) Which of the following is not
an unpaid seller's right against the goods?
a)
The right of retention.
b)
The right of stoppage in transit.
c)
The right of seeking claim for damage.
d)
The right of resale.
(iii) Where the endorser does not
want that the endorsee or any other holder to incur any expense on his account
is called
a)
Restrictive endorsement.
b)
Sans frais endorsement.
c)
Conditional endorsement.
d)
Unwanted endorsement.
(iv) The liability of the partners
will continue for the acts done before the dissolution, even after the
dissolution, until
a)
Public notice is given of the dissolution.
b)
Partners are getting the final
payment.
c)
Claim is demanded by the creditors.
d)
The death of partners.
(v) Every employee shall be
entitled to receive bonus from his employer in an accounting year if he has
worked for not less than
a)
Ten working days.
b)
Twenty working days.
c)
Thirty working days.
d)
Forty working days.
(vi) Under Employee's State
Insurance Act, 1948, the term of the office of the members of Medical Benefit
Council shall be
a)
2 Years.
b)
4 Years.
c)
5 Years.
d)
10 Years.
(vii)Which one cannot be transacted
through postal ballot?
a)
Appointment of auditor.
b)
Election of a Director.
c)
Buy back of shares by a company.
d)
Change in place of registered
office outside the local limits of any city, town or village.
(viii) The appointment of an
independent director shall be approved by the
a)
Board meeting.
b)
General meeting.
c)
Registrar of Companies.
d)
Central Government.
(ix) The sweat equity shares shall
be locked in for a period of __________ years from the date of allotment.
a)
One.
b)
Two.
c)
Three.
d)
Four.
(x) The following is the
disadvantage of business ethics:
a)
Through increasing morale and trust
business can increase their market share.
b)
Publicity due to well and ethical
performance.
c)
Acceptance of products of the
company by the public.
d)
Diversity in achievements.
C. Choose the most appropriate alternative for the following
(i) A proposal may be revoked at
any time before
a)
the communication of acceptance.
b)
the payment of consideration.
c)
signing the agreement.
d)
execution of the proposal.
(ii) Which of the following is not
to be taken care while admitting a new partner?
a)
Computation of new profit sharing
ratio and sacrifice ratio.
b)
Accounting treatment of goodwill.
c)
Professional qualification of admitting partner.
d)
Revaluation of assets and
liabilities.
(iii) Where goods are delivered to
the buyer and he refuses to accept them, the buyer is not bound to
a)
retain them with him.
b)
look-after the goods.
c)
return them to the seller.
d)
store them in his godown.
(iv) No child shall be allowed to
work in a factory unless he has completed his
a)
12th year.
b)
14th year.
c)
16th year.
d)
18th year.
(v) Gratuity shall be payable to an
employee on the termination of his employment after he has rendered continuous
service for not less than
a)
three years.
b)
five years.
c)
seven years.
d)
ten years.
(vi) The Employees' State Insurance
Corporation is
a)
Hindu Undivided Family.
b)
Local Authority.
c)
Charitable Institution.
d)
Body Corporate.
(vii) The annual return of an OPC
shall be signed by the company secretary or where there is no company
secretary, by the
a)
Senior executive of the company.
b)
Auditor of the company.
c)
Director of the company.
d)
Advocate of the company.
(viii)If there is any mis-statement
in the prospectus then it would attract the liability on
a)
The printer.
b)
The issuer.
c)
The publisher.
d)
The proof-reader.
(ix) Every company limited by
shares shall keep and maintain the Register of Members in Form No.
a)
MGT-1.
b)
MGT-3.
c)
MGT-7.
d)
MGT-12.
(x) Ethics are the set of moral
principles that guide a person's
a)
Behaviour.
b)
Philosophy.
c)
Religion.
d)
Profession.
D. Choose the most appropriate alternative for the following
(i) Which one of the following
is not the discharge by operation of law?
a)
By
merger.
b)
By
insolvency.
c)
By
breach of contract.
d)
By
the unauthorized alteration of items of a written document.
(ii) Which of the following
is a method of discharge from liability?
a)
By
endorsement.
b)
By promising.
c)
By
cancellation.
d)
By
registration.
(iii) A partner may
contribute to the LLP
a)
tangible
or intangible property.
b)
moveable
or immoveable property.
c)
money,
promissory note etc.
d)
Any of
the above.
(iv) Gratuity is payable to
an employee after he has rendered continuous service for not less than five
years on his
a)
transfer.
b)
daughter's
marriage.
c)
re-employment.
d)
resignation.
(v) Who will not be
considered as an employee?
a)
Canteen
workers.
b)
Casual
workers.
c)
Partners.
d)
Part
time employee.
(vi) "Individual pension
account" means an account of subscriber, executed by a contract setting
out the terms and conditions under the
a)
Provident
fund scheme.
b)
National
pension system.
c)
Citizen
welfare system.
d)
Minimum
wage payment scheme.
(vii)Which of the following
is not a category of company?
a)
Inactive
company.
b)
Assistant
company.
c)
Dormant
company.
d)
Producer
company.
(viii)Section 92 of the
Companies Act, 2013 requires a company to prepare and file annual return in
form no.
a)
MGT-12.
b)
INC-23.
c)
MGT-7.
d)
SH-10.
(ix) An instrument of the
proxy shall be deposited with the registered office of the company within
________ before the conduct of the meeting.
a)
7
hours.
b)
21
hours.
c)
48
hours.
d)
60
hours.
(x) A proper foundation of
ethics requires a standard of _______ to which all goals and actions can be compared
to.
a)
value.
b)
living.
c)
life.
d)
speech.
E. Choose the most appropriate alternative for the following
(i) The term 'sub-agent' in the
business of agency is defined as a person employed by, and acting under the
control of the
a)
Principal.
b)
Original agent.
c)
Lawyer.
d)
Third person.
(ii) The first endorsement of an
instrument can be made by the
a)
Banker.
b)
Payee.
c)
Holder in due course.
d)
Agent.
(iii) Which of the following is not
the mode of dissolution of a firm under voluntary dissolution?
a)
Dissolution by agreement.
b)
Dissolution on the happenings of
certain contingencies.
c)
Dissolution on becoming a partner of unsound mind.
d)
Compulsory dissolution.
(iv) White wash or color wash
should be carried out at least once in every period of
a)
14 months.
b)
24 months.
c)
48 months.
d)
60 months.
(v) The term 'family' as defined in
ESI Act, 1948 does not include
a)
a spouse.
b)
a minor adopted child.
c)
a dependent unmarried daughter.
d)
an independent married sister.
(vi) Which one of the following
amounts to safety measure?
a)
Artificial humidification.
b)
Ventilation.
c)
Fencing of factory.
d)
First aid appliances.
e)
Fencing of Machinery.
(vii) If a company does not have a
common seal, the share certificate shall be signed by
a)
Two Directors.
b)
One Director and Company Secretary.
c)
Two Directors and Company
Secretary.
d)
Company Secretary.
(viii) In case of e-voting, notice
shall be sent as attachment in
a)
PDF file.
b)
Word file.
c)
Excel file.
d)
Access file.
(ix) A Director may be elected by
small shareholders upon a notice by
a)
not less than 1000 small
shareholders.
b)
one tenth of the total number of
shareholders.
c)
not less than 1000 small shareholders or one tenth of such shareholders,
whichever is lower.
d)
one tenth of 1000 small
shareholders.
(x) Meta ethics deal with the
nature of ___________ .
a)
external influences.
b)
moral judgement.
c)
material facts.
d)
animal rights.