FINALTERM EXAMINATION
Spring 2009
MGT611- Business & Labor Law

Marks: 81

Question No: 1 ( Marks: 1 ) - Please choose one
A promise made without intention of performing it will result in:

  • Coercion
  • Innocent misrepresentation
  • Wrongful misrepresentation
  • Fraud


Question No: 2 ( Marks: 1 ) - Please choose one
A contract which ceases to be enforceable by law becomes _______ contract.

  • Void
  • Unenforceable
  • Illegal
  • Executory


Question No: 3 ( Marks: 1 ) - Please choose one
When the performance of promise by one party depends on the prior performance of the
promise by the other party, the promises are:

  • Mutual and independent
  • Mutual and dependent
  • Mutual and concurrent
  • Dependent and concurrent


Sponsored Links


Question No: 4 ( Marks: 1 ) - Please choose one
When a lender tells the borrower afterwards not to return money, the contract is
________.

  • Discharged
  • Breached
  • Performed
  • Altered


Question No: 5 ( Marks: 1 ) - Please choose one
Definition of contract of indemnity as given in Contract Act includes:

  • Implied promise to indemnify
  • Express promise to indemnify
  • Cases where loss arises by events depending on conduct of promisee
  • Cases where loss arises from conduct of promisor


Question No: 6 ( Marks: 1 ) - Please choose one
The Primary Contract in a contract of guarantee is:

  • A contract between creditor and surety
  • A contract between creditor and principal debtor
  • A contract between surety and principal debtor
  • A contract between creditor, surety and principal debtor


Question No: 7 ( Marks: 1 ) - Please choose one
Section 126 of Contract Act provides that a contract of guarantee ___________.

  • May be oral
  • May be written
  • May either be oral or written
  • Must be written

Question No: 8 ( Marks: 1 ) - Please choose one
Mr. X takes a loan of Rs. 5000 from Mr. Y on Guarantee of Mr. Z. The contract between
Mr. X and Mr. Y is the _______.

  • Contract of bailment
  • Principal contract
  • Secondary contract
  • Contract of indemnity


Question No: 9 ( Marks: 1 ) - Please choose one
According to section 142 of Contract Act, a guarantee obtained by means of
misrepresentation made by the creditor, concerning a material part of the transaction is
_____.

  • Valid
  • Invalid
  • Indemnity
  • Secondary contract


Question No: 10 ( Marks: 1 ) - Please choose one
A pledge can also be called as __________.

  • Bailment
  • Guarantee
  • Indemnity
  • Pawn


Question No: 11 ( Marks: 1 ) - Please choose one
In which sections of Contract Act, 1872 the law relating to contract of agency is
contained?

  • ss12-75
  • ss76-123
  • ss124 181
  • ss182-238


Question No: 12 ( Marks: 1 ) - Please choose one
An agent appointed to do all acts in connotation with a particular business identification
is called __________.

  • Special agent
  • General agent
  • Universal agent
  • Mercantile agent


Question No: 13 ( Marks: 1 ) - Please choose one
At the first annual general meeting of the company directors shall be elected in
accordance with section 178 for a term of:

  • 1 year
  • 2 years
  • 3 years
  • 5 years


Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following is not true about dividends?

  • Dividends shall be paid out of profits of the year or any other undistributed profits.
  • The directors can not pay interim dividends to the members.
  • The directors may set aside a reserve out of the profits before recommending any dividend.
  • All dividends shall be declared and paid according to the amounts paid on the shares.


Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is put into business by partners while formulating a partnership?

  • Money
  • Property
  • Labour and skill
  • Any or all of given options


Question No: 16 ( Marks: 1 ) - Please choose one
The Partnership Act, 1932 repealed which of the following?

  • Contract Act, 1872
  • Section 239-266 of the Contract Act, 1872
  • Section 72-144 of the Contract Act, 1872
  • Law of trust


Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following is true about a firm?

  • A firm has no legal existence.
  • A firm has a legal status if its own.
  • A firm has legal existence separate from its partners.
  • A firm has no legal existence separate from its partners.


Question No: 18 ( Marks: 1 ) - Please choose one
Preparation of required documents of the company is done during which phase?

  • Inauguration phase
  • Promotion phase
  • Registration phase
  • None of the given options


Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following is a legal document on the basis of which the company conducts
its external affairs?

  • Memorandum of association
  • Article of association
  • Share certificate
  • Certificate of commencement of business


Question No: 20 ( Marks: 1 ) - Please choose one
Memorandum of association of a new public company is required to be subscribed by
how many persons?

  • At least one person
  • Three persons
  • At least three persons
  • Seven persons


Question No: 21 ( Marks: 1 ) - Please choose one
What should be last words in the name of the private limited company?

  • Limited
  • (Private) Limited
  • & company
  • Any of the given options


Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following is most probably a company limited by guarantee?

  • A multinational company
  • A commercial bank
  • A stock exchange
  • A local manufacturing concern


Question No: 23 ( Marks: 1 ) - Please choose one
In which of the following situation, a company can not be wound up by the Court?

  • If the company is unable to pay its debts
  • If the company does not commence its business within a year from its incorporation
  • If the company suspends its business for a whole year
  • If the number of members of a private company is reduced to five



Question No: 24 ( Marks: 1 ) - Please choose one
Within how many days from the date of the making of the winding up order, a certified
copy of the order shall be filed with the registrar?

  • 7
  • 10
  • 15
  • 30


Question No: 25 ( Marks: 1 ) - Please choose one
A committee of the Securities and Exchange Policy Board constituted under section 15 is
termed as _______ in SECP Act, 1997.

  • Committee
  • Commission
  • Board
  • Clearing house


Question No: 26 ( Marks: 1 ) - Please choose one
The Securities and Exchange Commission when exercising its powers under SECP Act,
1997, shall have regard to which of the following?

  • The quality and capability of the management of the company
  • The general public interest
  • The interest of potential public investors in the company
  • All of the given options



Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following is not a party in cheque?

  • Payee
  • Maker
  • Drawer
  • Drawee


Question No: 28 ( Marks: 1 ) - Please choose one
If the endorser signs his name only, the endorsement is said to be:

  • Blank
  • Full
  • Special
  • Restrictive


Question No: 29 ( Marks: 1 ) - Please choose one
Within how many days from the receipt of the application to register a trade union, the
registerar shall issue a registration certificate?

  • 7 days
  • 10 days
  • 15 days
  • 30 days


Question No: 30 ( Marks: 1 ) - Please choose one
According to Industrial Relations Ordinance, which establishment shall set up a Joint
Works Council?

  • Private limited company
  • That has no shop steward
  • Listed in stock exchange
  • Having more than fifty employees


Question No: 31 ( Marks: 1 ) - Please choose one
What shall be the extent of workers' participation in Joint Works Council?

  • 25%
  • 40%
  • 50%
  • 60%


Question No: 32 ( Marks: 1 ) - Please choose one
Which shares are issued to the promoters or the underwriters of the company?

  • Deferred shares
  • Cumulative preference shares
  • Ordinary shares
  • Equity shares


Question No: 33 ( Marks: 1 ) - Please choose one
The Securities and Exchange Commission monitors the general financial condition of a
Non Banking Finance Company and may order ________.

  • To present annual report
  • To appoint internal auditor
  • To cease the business
  • For special audit


Question No: 34 ( Marks: 1 ) - Please choose one
All of the following included in the procedure of examining any person by the Securities
and Exchange Commission, EXCEPT:

  • Any person concerned with the case may be called by written notice
  • Such person shall be examined orally
  • Such person shall be examined in written
  • Any statement made by such person shall be prepared in writing


Question No: 35 ( Marks: 1 ) - Please choose one
Who defines the roles and responsibilities of the Chairman and Chief Executive of a
listed company?

  • Majority shareholders
  • Executive directors
  • The Board of Directors
  • Securities and Exchange Commission


Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following may not be included in the Directors Reports of listed
companies?

  • The fact along with reasons that the company is considered to be a going concern
  • Significant deviations from last year in operating results of the company
  • Key operating and financial data of last six years in summarized form
  • The reason that the company has not declared dividend


Question No: 37 ( Marks: 1 ) - Please choose one
An agent may draw an instrument on behalf of the principal subject to following
conditions, except:

  • That the agent has been authorized by the principal to that effect
  • That the principal is not a competent person to enter into a contract
  • That the agent acts in the name of the principal
  • That the agent has not exceeded his authority


Question No: 38 ( Marks: 1 ) - Please choose one
According to Halsbury, which of the following is a relation that subsists between persons
carrying on a business in common with a view of profit?

  • A proprietorship
  • A partnership
  • An enterprise
  • A company


Question No: 39 ( Marks: 1 ) - Please choose one
As per Industrial Relations Ordinance, 2002, the determination by a Labour Court,
Arbitrator or an Appellate Court of competent jurisdiction of any industrial dispute or any
matter relating thereto is called
:
  • Judgment
  • Award
  • Decision
  • Ruling


Question No: 40 ( Marks: 1 ) - Please choose one
An award of the Labour Court, in case of strike and lockout, shall not be for a period:

  • Less than one year
  • More than one year
  • Less than two years
  • More than two years


Question No: 41 ( Marks: 1 ) - Please choose one
Labour courts are established by whom?

  • Provincial Government
  • Federal Government
  • High Court
  • Supreme Court

Question No: 42 ( Marks: 1 ) - Please choose one
Which of the following is not a bench of National Industrial Relations Commission?

  • Single bench
  • Division bench
  • Half bench
  • Full bench


Question No: 43 ( Marks: 3 )
Describe the essentials of an endorsement.

Question No: 44 ( Marks: 3 )
Who is qualified to be a presiding officer of a labour court? How a presiding officer is
appointed?

Question No: 45 ( Marks: 3 )
When the winding up of a company is considered to be commenced? Discuss the effects
of voluntary winding up on the status of company.

Question No: 46 ( Marks: 5 )
How can a Non Banking Finance Company be incorporated? Discuss with reference to
section 282 of Companies Ordinance, 1984.

Question No: 47 ( Marks: 5 )
Describe the conditions to create a trust which should be fulfilled by the author of trust as
contained in section 6 of the Trusts Act, 1882.

Question No: 48 ( Marks: 10 )
There are certain conditions that a public company must fulfill to commence the business
or to exercise any borrowing powers. Discuss these conditions.

Question No: 49 ( Marks: 10 )
What are the powers of investigating officer of the Securities and Exchange Commission
under section 30 of SECP Act, 1997?