Legal Aspects of Finance - 17

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question A probationer is an employee and as such is not entitled to business.
Correct Answer False
Your Answer True
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Which committees are considered for calculating the limit of the companies
Correct Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Your Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Managers
Multiple Choice Multiple Answer
Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate
Multiple Choice Single Answer
Question What is computed by the competent authority at concessional rates?
Correct Answer Cost of living allowance and cash value
Your Answer Cost of living allowance and cash value
True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members , Whether
loans & advances made by the company have been shown as deposits , Whether
personal expenses have been charged to revenue account
Your Answer Whether loans & advances made by the company have been shown as deposits ,
Whether personal expenses have been charged to revenue account
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Annually
Multiple Choice Single Answer
Question If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer 30.6.2006
Your Answer 30.6.2006
Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person
Your Answer Includes legal representative of a deceased employed person
True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Your Answer Dividend balancing , Telephone expanses , Interest on funds
Match The Following
Question Correct Answer Your Answer
Audit Report Opinion on the examination of
books of accounts
Opinion on the examination of
books of accounts
Auditor A person who conducts the audits A person who conducts the audits
Qualified for audit Eligible to conduct the audit Eligible to conduct the audit
Cost auditor A cost accountant, who is suppose
to conduct cost audit of the
company.
A cost accountant, who is suppose
to conduct cost audit of the
company.
Select The Blank
Question Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer 30 days
Your Answer 30 days
Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Authority route
Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Your Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Multiple Choice Single Answer
Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02
Your Answer 0.02
True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Correct Answer False
Your Answer True
True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards
Your Answer Going concern , Accounting policies , Accounting standards
Multiple Choice Multiple Answer
Question Following are the Forms to be submitted to ROC for incorporation of company
:-
Correct Answer Form 32 , Form 29 , Form 1
Your Answer Form 32 , Form 1 , Form 5
True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Presentation as per Act
Multiple Choice Multiple Answer
Question For registering certain resolutions, following documents are submitted :-
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement
Your Answer Form 23 , Certified copy of resolution , Copy of explanatory statement
Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated
Your Answer Vacant
Select The Blank
Question ________ shall lay before the AGM, the statement of Income & Expenditure in
place of Profit & Loss a/c.
Correct Answer Charitable Trust
Your Answer Government company
True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False
Your Answer False
Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD
Your Answer NCD
Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association
Your Answer Private limited company , Unlimited company , Charitable association
Multiple Choice Single Answer
Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty
Your Answer Bank charges
Multiple Choice Single Answer
Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results
Your Answer Quarterly results
Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI
Your Answer SEBI
True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True
Your Answer False
True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer False
Your Answer False
Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days
Your Answer 30 days
Select The Blank
Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding
Your Answer Binding
Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Banks , Financial Institutions , Debenture Holders
Select The Blank
Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Current liabilities
Match The Following
Question Correct Answer Your Answer
Capital Account Guarantee by a person resident Capital Account
Living Expenses Current Account Personal Account
Deposits Capital Account Current Account
The Adjudicating Authority Power of Classification Accounting Authority
Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control
Your Answer Control
Select The Blank
Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Power of Attorney
Select The Blank
Question Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right
Your Answer Preferential right
Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company
Your Answer Directors of company
Multiple Choice Single Answer
Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India
Your Answer Reserve Bank of India
Multiple Choice Single Answer
Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years
Your Answer Five years
Multiple Choice Multiple Answer
Question What are the powers of the audit committee?
Correct Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice
Your Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice