CMA Intermediate Question Paper With Answers - Business Laws and Ethics Dec 2023
1. “Untouchability” is abolished and its practice in any form is
(a) Allowed
(b) Forbidden
(c) Partially allowed
(d) Partially forbidden
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2. If a mercantile agent is authorized by the owner of the goods to sell on his behalf, then such sale shall be
(a) Objectionable
(b) Void
(c) Valid
(d) Incomplete
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3. A party who does not suffer any loss in case of breach of contract is entitled to
(a) Exemplary damages
(b) Nominal damages
(c) Liquidated damages
(d) Statutory damages
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4. The Negotiable Instruments Act, 1881 extends to:
(a) The whole of India.
(b) Only to capital cities of the States.
(c) The whole of India except the Union Territories.
(d) The whole of India except the State of Jammu and Kashmir.
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5. Every foreign LLP shall file with the Registrar the Statement of Account and Solvency in
(a) Form 6
(b) Form 7
(c) Form 8
(d) Form 9
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6. If there is a dispute as to the amount of gratuity payable to the employee, the employer shall deposit the gratuity with the ____________.
(a) State Board
(b) Controlling Authority
(c) State or Central Board
(d) All of the above
Answer : b
Choice 'b' is correct as If there is a dispute between the employer and employee regarding the amount of gratuity payable, the employer may be required to deposit the disputed amount with the Controlling Authority.
The Controlling Authority may refer to a government agency or department responsible for overseeing and enforcing employment laws and regulations related to gratuity payments. By depositing the disputed amount with the Controlling Authority, the employer can show their commitment to fulfilling their legal obligations and avoiding potential legal action or penalties.
It's important for both employers and employees to understand their rights and responsibilities when it comes to gratuity payments, as well as any applicable laws or policies in their jurisdiction. If there is a dispute over a gratuity payment, it may be helpful to seek legal advice or mediation to help resolve the issue.
7. Where a person is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Code, the employer shall pay to such person wages at not less than the ___.
(a) Maximum time rate
(b) Minimum time rate
(c) Alternate time rate
(d) All of the above
Answer : b
8. No prospectus shall be valid if it is issused more than________which a copy there of is delivered to the Registrar.
(a) Fifteen
(b) Thirty
(c) Sixty
(d) Ninety
Answer :
9. The private placement shall be made, not more than _______ persons in aggregate in a financial year as per Companics Act, 2013.
(a) 400
(b) 300
(c) 200
(d) 100
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10. The quorum for a public company having the number of members more than 5000 is ___________
(a) 10
(b) 20
(c) 30
(d) 40
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11. In case of e-voting notice shall be sent as attachment in
(a) PDF
(b) Word file
(c) Excel
(d) XML
Answer :
12. For selecting the name for the company, an application for the reservation of name shall be made in_________ with the fee.
(a) Form - INC 1
(b) Form - INC 7
(c) Form - MGT 1
(d) Form - MGT 7
Answer :
13. Where the equity shares of the company are listed on a recognized stock exchange, the issue of such shares shall be approved by sharcholders through the
(a) Voting by show of hands
(b) Voting through clectronic means
(c) Postal ballot
(d) Voting by poll
Answer :
14. Selflessness means that the holders of public office should act solely in terms of the _______ .
(a) Government interest
(b) Public interest
(c) Company interest
(d) All of the above
Answer : b
15. Moral management requires ethical
(a) Customer
(b) Market
(c) Leadership
(d) Producer
Answer :
Section - B
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| Point of distinction | Contract of Indemnity | Contract of Guarantee |
| Number of party/ Parties to the contract | here are only two parties namely the indemnifier [promisor] and | there are three parties creditor, principal debtor and surety. |
| Nature of liability | The liability of the indemnifier is primary and unconditional. | The liability of the surety is secondary and conditional as the primary liability is that of the principal debtor. |
| Time of liability | The liability of the indemnifier arises only on the happening of a contingency. | The liability arises only on the non performance of an existing promise or non-payment of an existing debt. |
| Time to act | The indemnifier need not act at the request indemnity holder | The surety acts at the request of principal debtor |
| Right to sue third party | indemnifier cannot sue a third party for loss in his own name as there is no privity of contract. Such a right would arise only if there is an assignment in his favour. | surety can proceed against principal debtor in his own right because he gets all the right of a creditor after discharging the debts. |
| Purpose | Reimbursement of loss | For the security of the creditor |
| Competency to contract | All parties must be competent to contract | competent to contract In the case of a contract of guarantee, where a minor is a principal debtor, the contract is still valid. |
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Answer : Time limit for payment of wages
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Two days later, Mr. X requests to Mr. Y to return at least 50 bales of cotton marked with particular mark, on urgent basis. But, Mr. Y refuses to do so and informed Mr. X that he has mixed all cotton bales with other bales kept in the warehouse. So, Mr. Y will have to separate the cotton bales received from Mr. X by deploying additional labourers and then only it will be possible to send back the 50 bales of cotton for which Mr. X will have to pay the labour charges for the purpose.
Mr. X is not willing to pay the labour charges and asks Mr. Y to return at least 50 bales of cotton.
Decide the casc and present your expert opinion.
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Mr. Dilip Kumar argues that he need not to send the letter to the Registrar, hence, his resignation be accepted with effect from 15.04.2023. - Directors Analyze the situation and discuss.
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Ruchika Saboo
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