100+ Free ICAB CL Business Law Practice Questions

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2026 Statistics

Key Facts: ICAB CL Business Law Exam

1.5 hours

Official exam duration

ICAB Syllabus 2023 Business Law module

50 marks

Paper total marks

ICAB Syllabus 2023

Tk. 1,200

CL fee per 50-mark subject

ICAB application-fees page

40%

Companies Act 1994 weighting

ICAB Syllabus 2023 specification grid

ICAB CL Business Law is a 50-mark, 1.5-hour Certificate Level paper (exam fee commonly Tk. 1,200). Syllabus 2023 weights: Companies Act 40%, Negotiable Instruments 20%, Partnership Act 20%, Contract & Sale of Goods Acts 20%. This free set offers 100 practice MCQs mapped to those areas.

Sample ICAB CL Business Law Practice Questions

Try these sample questions to test your ICAB CL Business Law exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the minimum number of directors required for a public limited company under the Companies Act, 1994 of Bangladesh?

A.One director

B.Two directors

C.Three directors

D.Five directors

Explanation: Under Section 90 of the Companies Act, 1994, every public company must have at least three directors. Private companies are required to have at least two directors. This is a fundamental structural requirement to ensure proper governance in public entities.

2What is the maximum number of members in a private limited company under the Companies Act, 1994, excluding employees?

A.20 members

B.50 members

C.100 members

D.Unlimited

Explanation: Under Section 2(1)(q) of the Companies Act, 1994, a private company limits the number of its members to fifty, excluding persons who are in the employment of the company. This restriction distinguishes a private limited company from a public limited company.

3Which document defines the external relationship of a company with the outside world and outlines its main objects?

A.Articles of Association

B.Memorandum of Association

C.Prospectus

D.Certificate of Incorporation

Explanation: The Memorandum of Association is the charter of a company which defines its powers, objects, and external relationships under Section 6 of the Companies Act, 1994. Any act done outside the scope of this document is ultra vires and void.

4Within how many months of incorporation must a company hold its first Annual General Meeting (AGM) under the Companies Act, 1994?

A.9 months

B.12 months

C.15 months

D.18 months

Explanation: Under Section 81(1) of the Companies Act, 1994, a company must hold its first AGM within 18 months of its incorporation. Subsequent AGMs must be held once in every calendar year and within 15 months of the last AGM.

5What is the minimum number of members required to form a public limited company under the Companies Act, 1994?

A.Two members

B.Three members

C.Seven members

D.Fifty members

Explanation: Under Section 5 of the Companies Act, 1994, any seven or more persons associated for a lawful purpose may form a public limited company by subscribing their names to a memorandum. A private limited company requires at least two members.

6Which authority is responsible for the registration of companies in Bangladesh under the Companies Act, 1994?

A.Securities and Exchange Commission

B.Registrar of Joint Stock Companies and Firms

C.Bangladesh Bank

D.Ministry of Commerce

Explanation: The Registrar of Joint Stock Companies and Firms (RJSC) is the government organ responsible for registering companies, partnerships, and societies in Bangladesh under the Companies Act, 1994. They maintain all official incorporation documents.

7Under Section 85 of the Companies Act, 1994, what is the default quorum for a general meeting of a public limited company unless the articles state otherwise?

A.Two members personally present

B.Three members personally present

C.Five members personally present

D.Ten members personally present

Explanation: Under Section 85(1)(a) of the Companies Act, 1994, unless the articles of a company provide for a larger number, five members personally present shall be a quorum for a meeting of a public limited company. For a private company, the quorum is two members.

8Which type of resolution under the Companies Act, 1994 requires a three-fourths majority of votes cast at a general meeting?

A.Ordinary Resolution

B.Special Resolution

C.Board Resolution

D.Unanimous Resolution

Explanation: Under Section 87 of the Companies Act, 1994, both Extraordinary and Special Resolutions require a majority of not less than three-fourths (75%) of the members entitled to vote. An ordinary resolution requires a simple majority.

9Under Section 97 of the Companies Act, 1994, within what period must a director obtain their qualification shares after appointment?

A.30 days

B.Two months

C.Three months

D.Six months

Explanation: Section 97(1) states that it is the duty of every director who is required by the articles to hold qualification shares to obtain them within two months after their appointment. Failure to do so results in vacation of office.

10According to the Companies Act, 1994, which of the following is correct regarding the alteration of the Articles of Association?

A.It can be altered by an ordinary resolution.

B.It can be altered by a special resolution.

C.It cannot be altered once registered.

D.It requires prior permission from the High Court Division.

Explanation: Under Section 20 of the Companies Act, 1994, subject to the provisions of the Act and the conditions in its memorandum, a company may by special resolution alter or add to its articles. The alteration is then filed with the RJSC.

About the ICAB CL Business Law Exam

ICAB Certificate Level Business Law builds competence in Contract Law, Partnership Act, Negotiable Instruments Act, and Companies Act in the context of corporate and financial operations in Bangladesh. Assessment is a 1.5-hour, 50-mark paper delivered in the Certificate Level objective/MCQ format used in the current curriculum pathway.

Assessment

ICAB Syllabus 2023 Certificate Level Business Law (50 marks): Overview of Companies Act 1994 (40%), The Negotiable Instruments Act 1881 (20%), The Partnership Act 1932 (20%), and The Contract Act 1872 and Sale of Goods Act 1930 (20%).

Time Limit

1.5 hours (90 minutes)

Passing Score

Pass/fail per ICAB examination regulations (fixed public % not confirmed in Syllabus-2023 PDF—verify current rules)

Exam Fee

Tk. 1,200 per 50-mark Certificate Level subject (ICAB students' blog fee schedule; confirm sitting) (Institute of Chartered Accountants of Bangladesh (ICAB))

ICAB CL Business Law Exam Content Outline

40%

Overview of Companies Act, 1994

Incorporation, memorandum, articles, directors, meetings, share capital, and winding up.

20%

Negotiable Instruments Act, 1881

Promissory notes, bills of exchange, cheques, crossing, holder in due course, presentment, negotiation, and dishonour.

20%

Partnership Act, 1932

Syllabus details regarding partnership formation, relations, incoming/outgoing partners, and dissolution.

20%

Contract Act, 1872 and Sale of Goods Act, 1930

Formation, consideration, capacity, free consent, void agreements, breach, remedies, indemnity, guarantee, bailment, pledge, agency, and sale of goods.

How to Pass the ICAB CL Business Law Exam

What You Need to Know

Passing score: Pass/fail per ICAB examination regulations (fixed public % not confirmed in Syllabus-2023 PDF—verify current rules)
Assessment: ICAB Syllabus 2023 Certificate Level Business Law (50 marks): Overview of Companies Act 1994 (40%), The Negotiable Instruments Act 1881 (20%), The Partnership Act 1932 (20%), and The Contract Act 1872 and Sale of Goods Act 1930 (20%).
Time limit: 1.5 hours (90 minutes)
Exam fee: Tk. 1,200 per 50-mark Certificate Level subject (ICAB students' blog fee schedule; confirm sitting)

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ICAB CL Business Law Study Tips from Top Performers

1Read through core definitions in the Contract Act, particularly regarding void and voidable agreements, and remedies for breach.

2Understand and distinguish negotiable instruments under NI Act 1881.

3Understand the rights and liabilities of partners to third parties under the Partnership Act.

4Study company promotion, memorandum requirements, and directors' statutory duties under the Companies Act 1994.

Frequently Asked Questions

What is ICAB Certificate Level Business Law?

It is the Business Law module of the Institute of Chartered Accountants of Bangladesh CA Certificate Level under Syllabus 2023. It tests Bangladeshi contract, partnership, negotiable instrument, and company laws.

How long is the Business Law exam?

ICAB Syllabus 2023 states the Business Law module is assessed by a 1.5-hour (90-minute) examination (50 marks).

What does the syllabus weighting look like?

Indicative marks are Companies Act 1994 20 marks (40%), Negotiable Instruments Act 10 (20%), Partnership Act 10 (20%), and Contract Act + Sale of Goods Act 10 (20%).

How much is the exam fee?

ICAB's application-fees page lists Certificate Level examination fees of Tk. 1,200 for 50-mark subjects. Confirm the fee on your sitting notice or exam.icab.org.bd.

Is the paper MCQ?

Under the current Certificate Level pathway, Business Law is assessed in objective/MCQ style. Always confirm format on your official sitting circular.

What is the pass mark?

A fixed public percentage pass mark is not stated in the ICAB Syllabus 2023 PDF; ICAB publishes pass/fail results per sitting. Confirm current pass rules on icab.org.bd.