AGENCY AND BUSINESS ORGANIZATION BOARD QUESTIONS WITH ANSWER
Table of Contents
BRIEF ANSWER QUESTIONS [2 MARKS]
1.2023 Fall Q. No. 3 Who is a liquidator?
Answer: A liquidator is a person appointed to close a company. They sell the company’s assets, pay off its debts, and distribute any remaining money to shareholders.
2. 2023 Fall Q. No. 4 Differentiate national and international law.
Answer: The differentiate national law and international law
National law applies within a country and governs individuals and organizations.
International law manages relations and agreements between different countries.
3. 2023 Fall Q. No. 6 | 2019 Spring Q. No. 7 Agency may be created by ratification. What does this mean? Explain.
Answer: This means someone acts on behalf of another without permission, and later the person accepts or approves the action. This approval makes the act valid as if it was authorized from the beginning.
4. 2023 Fall Q. No. 10 How annual general meeting is different from special general meeting of company.
Answer: An AGM is held every year to discuss routine matters like approving accounts and appointing directors. An SGM is held when urgent or special issues arise that cannot wait until the AGM.
5. 2023 Fall Q. No. 10 | 2016 Spring Q. No. 10 Write any two conditions for voluntary liquidation.
Answer: The two conditions for voluntary liquidation are
1. When the members of the company pass a resolution to close it.
2. When the company cannot play its debts and decides to close voluntarily.
6. 2022 Fall Q. No. 9 When does an agent have to bear liability personally? Enlist two of them.
Answer: An agent haves to bear liability personally
1. When the agent acts without the principal’s permission or authority.
2. When the agent hides the fact that they are working for a principal.
7. 2021 Spring Q. No. 4 What is the meaning of arbitration?
Answer: Arbitration is a way to settle disputes without going to court. A neutral third party listens to both sides and gives a binding decision.
8. 2021 Fall Q. No. 7 Why is liquidator?
Answer: A liquidator is responsible for closing a company. They handle selling assets, paying off debts, and dividing the remaining funds among shareholders.
9. 2021 Fall Q. No. 10 What is legal personality?
Answer: Legal personality means an organization, like a company, is treated as a separate entity under the law. It can own property, enter contracts, and sue or be sued in its own name.
10. 2021 Spring Q. No. 9 What are minutes and resolutions of a company?
Answer: Minutes are written records of what happens in a meeting. Resolutions are formal decisions made during the meeting, often through voting.
11. 2020 Spring Q. No. 8 Board of Directors when managing a company could be liable in certain situations. State any two situations in which they could be made liable.
Answer: The two situations where the Board of Directors can be liable
1. When they fail to act in the company’s best interests or misuse funds.
2. When they breach their duties, such as failing to disclose conflicts of interest.
12. 2020 Spring Q. No. 10 State two important provisions relating to the appointment of arbitrators in arbitration under Arbitration Act, 2055 B.S.
Answer: The two important provisions relating to the appointment of arbitrators in arbitration under Arbitration Act, 2055 B.S.
1. Arbitrators must be impartial and unbiased.
2. They should resolve disputes within the given time as per the agreement or law.
13. 2019 Spring Q. No. 8 What are the basic features of company?
Answer: The basic features of Company are,
1. A company is a separate legal entity, independent of its owners.
2. The liability of its shareholders is limited to the value of their shares.
14. 2019 Spring Q. No. 9 Arbitration is good for settlement of business disputes. What do you understand by arbitration?
Answer: Arbitration is a private process where disputes are resolved by an impartial person. It is faster, cheaper, and more confidential than court trials.
15. 2019 Spring Q. No. 5 What is arbitration?
Answer: Arbitration is a process of settling disputes outside court, where a neutral person makes a decision that both parties must follow.
16. 2019 Spring Q. No. 4 When a company is deemed to have become insolvent?
Answer: A company is insolvent when it cannot play its debts on time or when its total debts exceed its assets.
17. 2018 Fall Q. No. 5 What do you mean by agent?
Answer: An agent is a person authorized to act on behalf of another person( the Principal) in business matters.
18. 2018 Fall Q. No. 5 Write two important advantages of arbitration.
Answer: The two important advantages of arbitration
1. It is faster and less expensive than going to court.
2. It keeps disputes private and confidential.
19. 2018 Spring Q. No. 9 What is an extraordinary general meeting of the company?
Answer: An extraordinary general meeting (EGM) is a special meeting called to discuss urgent matters that cannot wait until the annual general meeting.
20. 2018 Fall Q. No. 3 Define legal personality.
Answer: Legal personality means that a company or organization is recognized as a separate legal entity. It can own property, make contracts, and be sued or sue others.
21. 2017 Fall Q. No. 5 Who is principal in Agency Contract?
Answer: The principal is the person who gives authority to the agent to act on their behalf in business transactions.
22. 2017 Fall Q. No. 6 Emphasize the role of arbitration in commercial law.
Answer: Arbitration helps businesses resolve disputes quickly and privately. It saves time and money and avoids lengthy court processes.
23. 2017 Spring Q. No. 7 What is company? Write any two features of an incorporated company.
Answer: A company is a legal entity formed to conduct business.
1. It has a separate legal identity from its owners.
2. The liability of its shareholders is limited.
24. 2017 Spring Q. No. 9 State any three modes of creation of an agency.
Answer: The three modes of creation of an agency,
1. By agreement ( Contract).
2. By necessity ( urgent situations).
3. By ratification ( approval of unauthorized acts.)
25. 2016 Spring Q. No. 7 What is the meaning of arbitration? Write any two features.
Answer: Arbitration is resolving disputes outside court with a neutral third party. Features:
1. The arbitrator’s decision is binding.
2. It is a confidential process.
26. State important two purposes for which principal appoints an agent.
Answer: The important purposes for principal appoints an agent are
1. To represent them in business dealings.
2. To perform tasks they cannot do themselves.
27. Why is company so popular for doing business? Give two important reasons.
Answer: Company is so popular for doing business
1. A company has limited liability, protecting the personal assets of its owners.
2. It has a separate legal identity, which helps in long- term business continuity.
28. Arbitration is good for settlement of business disputes. Define arbitration.
Answer: Arbitration is a private way to resolve disputes. A neutral person hears both sides and gives a final decision that must be followed.
29. State two important rules on which agency is based.
Answer: The two important rules on which agency is based
1. The agent must act in the best interest of the principal.
2. The principal must honor the agent’s authorized actions.
30. Aditya Pahari, the CEO of a company, asked his accountant, Sudeep, to prepare a list of credit transactions of the company for the period of six months within three days. In this case, can Sudeep be called an agent of the CEO? Give two reasons for your answer.
Answer: Yes, Sudeep can be called an agent because:
1. He is performing tasks on behalf of the CEO.
2. He is acting under the CEO’s instructions to complete the job.
31. Private company and public company differ from each other? State any two differences.
Answer: The two differences between private company and public company
1. A private company restricts the transfer of its shares, while a public company does not.
2. A private company has fewer legal requirements than a public company.
32. Kartik is the agent of a Marketing Company. State two important features of this relationship between Kartik and the Company.
Answer: The two important features of the relationship between Kartik and the company.
1. Kartik acts under the authority given by the company.
2. The company is responsible for Kartik’s authorized actions.
SHORT ANSWER QUESTIONS [10 MARKS]
33. Fall Q. No. 14 | 2019 Spring Q. No. 12 Company is an artificial person. As the company cannot act on its own, it is managed by human agents called board of directors. Discuss important provisions relating to the powers and duties of the board of directors. Click Here for Answer
34. 2022 Fall Q. No. 15 Why arbitration is called a method of Alternative Dispute Resolution (ADR)? Discuss the importance of arbitration in business. Click here for Answer
35. 2022 Fall Q. No. 16 What is contract of Agency? Explain the modes of creation of agency using suitable examples. Click here for Answer
36. 2021 Spring Q. No. 11 Define company as an artificial person and explain its registration process referring to Company Act-2063 of Nepal. Click Here for Answer
37. 2021 Spring Q. No. 17 What are the major duties of an auditor? State in brief the conditions of removal of an auditor. Click here for Answer
38. 2021 Fall Q. No. 11 What is an agent? Define right and duties of the agent. Click here for Answer
39. 2021 Fall Q. No. 13 Define a company. Mention and explain different types of company according to Company Act-2063. Click Here for Answer
40. 2020 Spring Q.No. 13 What do you mean by contract of agency? Discuss the various modes of creating agency. Click here for Answer
41. 2020 Spring Q. No. 16 What do you mean by Arbitration? Discuss the importance of arbitration in business and business law. Click here for Answer
42. 2019 Fall Q. No. 15. State five important rights of an agent. Click here for Answer
43. 2018 Fall Q. No. 12 Explain the rights and the duties of an agent. Also, write down the provisions of a sub-agent. CLick in Questions For Answer
44. 2018 Fall Q. No. 15 What do you understand by general meeting of a company? Click here for Answer
45. 2018 Spring Q. No. 14 What are the rights and duties of an agent? Is an agent personally responsible for the agency business? Mention the circumstances. Click in Questions for Answer
46. 2018 Spring Q. No. 17 What do you mean by arbitration? Explain the powers and duties of an arbitrator while solving disputes. Click Here for Answer
47. 2017 Fall Q. No. 14 Briefly discuss the rights and duties of principal and agent in agency contract. Click here for Answer
48. 2017 Spring Q. No. 14 What do you mean by liquidation? Explain the process of voluntary liquidation according to the company act 2063 of Nepal. Click Here for Answer
49. 2017 Spring Q. No. 17 What do you mean by Arbitration? Discuss the power and duties of the Arbitrator in line with the Arbitration Act of Nepal. Click Here for Answer
50. 2016 Spring Q. No. 12 What is Public limited Company? How a company is incorporated according to the company act 2063 Nepal? Click here for Answer