Question 1

What does the legal maxim *Ignorantia Juris Non Excusat* mean for a business student?

Accepted Answer

This maxim translates to "ignorance of the law is no excuse." In a legal and business context, it means that an individual or business owner cannot escape liability or penalties by claiming they were unaware of a specific law. Whether you are a farmer, a student, or a CEO, the law treats everyone equally, making it essential for business professionals to proactively understand the regulations that govern their operations.

Question 2

What are the primary characteristics that define "Law" according to the BBS syllabus?

Accepted Answer

Law is defined as a body of rules created and enforced by the state to regulate human conduct and maintain order. Its key characteristics include being uniform (applying to everyone equally), dynamic (evolving as society and technology change), and coercive (enforced by state power with penalties for violations). Furthermore, law always serves a purpose for the "common good" by protecting the rights and interests of the majority.

Question 3

What are the main sources of law in Nepal that a student should know for the exam?

Accepted Answer

The sources of law are the origins from which legal rules gain their legitimacy. The primary source is Legislation, which consists of written acts passed by Parliament, such as the Company Act. Other major sources include Precedent (binding decisions made by the Supreme Court), Custom (long-standing social practices that do not contradict statutory law), and Conventions (international treaties ratified by the state). Additionally, expert writings and the laws of other countries serve as "persuasive" sources that guide judicial reasoning.

Question 4

What is the difference between a Private Limited Company and a Public Limited Company in Nepal?

Accepted Answer

A Private Limited Company is restricted to a maximum of 101 shareholders and cannot trade its shares on the stock exchange, making it ideal for smaller businesses. In contrast, a Public Limited Company requires a minimum of seven shareholders and a minimum paid-up capital of 1 Crore NPR. Public companies can raise capital from the general public but are subject to much stricter regulations, including mandatory listing on the stock exchange and more rigorous audit requirements.

Question 5

What are the essential steps for registering a company at the Office of the Company Registrar (OCR)?

Accepted Answer

The registration process begins with the Reservation of a unique Company Name. Once approved, the promoters must draft and submit the Memorandum of Association (MOA), which acts as the company's constitution, and the Articles of Association (AOA), which serves as the internal rulebook. After paying the registration fee and receiving a Certificate of Incorporation, the business must then register with the Inland Revenue Department for a PAN/VAT number and obtain a trade license from the local ward office.

Business Law Basics for BBS 3rd Year Exams

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