Limited Insolvency Exam – Model Question Paper II – 2017

Full-length model question paper for the Limited Insolvency Exam conducted by the Insolvency and Bankruptcy Board of India ( IBBI )

51 The Financial Sector Legislative Reforms Commission has proposed a which will
intervene in the working of financial firms when they are distressed but still solvent.
a) Financial resolution corporation
b) Resolution corporation
c) Insolvency resolution corporation
d) Business resolution corporation

Ans. (b)

52 The Code proposed by the Bankruptcy Law Reforms Committee provides for a … for creditors and debtors to negotiate in an orderly and non-conflicted manner.
a) forum
b) calm period
c) committee
d) negotiation period

Ans. (b)

53 As per the Bankruptcy Law Reforms Committee, the process which discharges all debts if the
assets and income of a debtor are under an amount specified by regulations is called
a) earned start
b) automatic fresh start order
c) insolvency resolution process
d) bankruptcy process

Ans. (b)

54 Which of the following Acts does not deal with recovery of dues, either by financial or nonfinancial creditors?
a) the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
b) Recovery of Debts Due to Bank and Financial institutions Act, 1993
c) The Contract Act, 1872
d) Provincial Insolvency Act, 1920

Ans. (d)

55 Which of the following regulates issue of securities and the non-payment of dividend by listed companies?
a) Securities and Exchange Board of India
b) Central Government
c) Tribunal
d) Registrar

Ans. (a)

56 For a charge to be duly considered by the liquidator or any other creditor, it
a) has to be duly registered.
b) must have a certificate of registration.
c) must be duly registered and have a certificate of registration.
d) need not be registered.

Ans. (c)

57 The Corporate Social Responsibility Committee must have at least ____ independent directors.
a) One
b) Two
c) 1/3
d) 2/3

Ans. (a)

58 Which of the following matters requires a special resolution by a company?
a) Reducing share capital
b) Removal of a director
c) Acceptance of deposits
d) Appointment of a director

Ans. (a)

60. Who ordinarily appoints registered valuers under the Companies Act, 2013?
a) Audit committee of the Board
b) Board of Directors of the company
c) Registrar of the Companies
d) Valuation committee of the Board

Ans. (a)

61 The President of the National Company Law Tribunal shall be a person who is or has been:
a) a judge of a High Court for five years
b) a judge of a High Court for three years
c) a judge of a District Court for ten years
d) a senior advocate

Ans (a)

62. In the absence of any specific contract between the partners, a partner making, for the purposes of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, is entitled to interest thereon at the rate of ….% per annum.
a) 5.0
b) 6.0
c) 4.5
d) 4.0

Ans. (b)

63. Under section 48 of the Partnership Act, 1932, the losses of the firm after dissolution shall be settled in the following manner subject to any agreement by the partners:
a) The losses, including deficiency of capital, shall be borne equally by the partners.
b) Loss, including deficiency of capital, shall be paid first out of profits, next out of capital and lastly, if necessary, by partners individually in proportions in which they are entitled to share profits.
c) Losses, including deficiency of capital, are paid by the partners individually in proportions in which they are entitled to share profits and profits and capital are to be distributed equally amongst the partners.
d) Losses, including deficiency of capital, are paid by the partners individually in proportions in which they are entitled to share profits and profits and capital are to be distributed in the proportion in which they are entitled to share profits.

Ans. (b)

64 A Limited Liability Partnership firm shall have at least …. partners.
a) 2
b) 3
c) 5
d) 7

Ans. (a)

65 A limited liability partnership firm shall, within a period of six months from the end of each financial year, prepare for the said financial year as at the last day of the said financial year.
a) statements of accounts
b) statements of assets and liabilities of partners
c) statements of accounts and solvency
d) statements of financial accounts

Ans. (c)

66 Which of the following is not a requirement of a contract?
a) free consent of the parties
b) lawful consideration
c) lawful object
d) a written agreement

Ans. (d)

67 Which of the following agreements is not void?
a) agreement in restraint of marriage
b) agreement in restraint of trade
c) agreement in restraint of legal proceedings
d) agreement caused by undue influence

Ans. (d)

68 A contract in which one person promises to compensate the other for the loss suffered by him, due to the conduct of the promisor or of any other person, is known as:
a) Contract of indemnity
b) Contract of guarantee
c) Quasi-contract
d) Contingent contract

Ans. (a)

69 Under the Transfer of Property Act, 1882, the expression ‘registered’ pertains to
a) registration of property
b) registration of documents
c) registration of parties
d) registration of charges

Ans. (b)

70 A contract for present sale of future goods under the Sale of Goods Act, 1930 operates as a/an
a) contract of sale
b) agreement to sell
c) estoppel
d) quasi contract of sale

Ans. (b)

71 Which of the following decides applications from the banks and financial institutions for recovery of debts due to them?
a) Debt Recovery Tribunals
b) Debt Recovery Appellate Tribunals
c) Securities Appellate Tribunals
d) Central Board for Direct Taxes

Ans. (a)

72 B Ltd. has taken a loan from A Ltd. B Ltd. will not be considered as a ‘borrower’ under of the SARFAESI Act, 2002 in the event
a) B Ltd. is a non-financial company
b) A Ltd. is a financial company
c) A Ltd. and B Ltd. are financial companies
d) A Ltd. and B Ltd. are non-financial companies

Ans. (d)

73 Which of the following Acts have not been amended by the Insolvency and Bankruptcy Code, 2016?
a) The Transfer of Property Act, 1882
b) The Companies Act, 2013
c) The Limited Liability Partnership Act, 2008
d) The Income Tax Act, 1961 Ans. (a)

74. The Hon’ble Supreme Court, through its order in the matter of Mardia Chemicals Ltd. Vs. Union of India, reduced the mandatory pre-deposit for filing securitization applications from 75% to %.
a) 60
b) 50
c) 40
d) 25

Ans. (d)

75 “S4A” scheme of RBI stands for
a) Scheme for Sustainable Structuring of Stressed Assets
b) Scheme for Schematic Structuring of Stressed Assets
c) Scheme for Sustainable Structuring of Systemic Assets
d) Scheme for Schematic Structuring of Systemic Assets

Ans. (a)

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