Legal Aspects of Finance - 23

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question For which activity FDI is not prohibited?
Correct Answer Insurance
Your Answer Insurance
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Quarterly , Annually , Monthly
Multiple Choice Single Answer
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to employed
persons
Your Answer To ensure regular and timely payment of wages to employed
persons
Multiple Choice Single Answer
Question To safeguard the interest of the company or its shareholders or the public
interest, the central government, may appoint such number of person as directors to hold
office for a period not exceeding :-
Correct Answer 3 years
Your Answer 3 years
Multiple Choice Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948
Multiple Choice Single Answer
Question Number of shareholders entitled to requisition a meeting shall be carrying
Correct Answer Not less than 10 per cent of voting power
Your Answer Not less than 10 per cent of voting power
True/False
Question Bonus is an ex gratia payment.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Compliance Report is signed by :-
Correct Answer Company Secretary in practice
Your Answer Company Secretary in practice
Multiple Choice Single Answer
Question The responsibility of placing the annual accounts before the AGM is on
Correct Answer Board of Directors
Your Answer Board of Directors
True/False
Question Every company shall keep a register showing the particulars in respect of
every loan or investment made, guarantee given or security provided.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Following are the points related to Qualification share that every director
has to take :-
Correct Answer Within two months of date of appointment , If fails to obtain then
he has to resign from the post , Minimum Share value Rs.5000/-
Your Answer Minimum Share value Rs.5000/- , If fails to obtain then he has to
resign from the post
True/False
Question The loan to any body corporate shall be made at the rate of interest not
less than that prevailing bank rate as may be prescribed by Reserve Bank of India.
Correct Answer True
Your Answer True
True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False
Your Answer True
True/False
Question Owned foreign exchange is not permitted.
Correct Answer False
Your Answer True
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
True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Bifurcation Voted for/ against Chairman
Ordinary resolution Simple majority Simple majority
Requisition of members Not less than 5 % voting power Not less than 5 %
voting power
Special resolution Form 23 Voted for/ against
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 Charitable Trust
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
Select The Blank
Question No loan or investment shall be made or guarantee given by company
unless ________ is passed at the meeting by the board.
Correct Answer Resolution
Your Answer Resolution
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
Select The Blank
Question The minimum wages to the obligations created by the convention no 26 of
________.
Correct Answer International labour organisation
Your Answer International labour organisation
True/False
Question A temporary workman is not entitled to bonus though he works for a few
days in the organisation.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question A person can not be appointed as director of the company if :-
Correct Answer He is found to be of unsound mind , He is declared as an insolvent
, He has not taken qualification shares
Your Answer He is found to be of unsound mind , He is declared as an insolvent
, He has not taken qualification shares
Multiple Choice Single Answer
Question A company which restricts the right to transfer its shares is :-
Correct Answer Private Ltd. Company
Your Answer Private Ltd. Company
Match The Following
Question Correct Answer Your Answer
Interim Dividend Board of Directors Board of Directors
Shorter notice for AGM Private Limited Company ROC
Books of Account Form 23AA Form 23AA
Accounting StandardsNational Advisory Committee National Advisory
Committee
Multiple Choice Multiple Answer
Question Preference shares can be :-
Correct Answer Cumulative redeemable , Non- cumulative redeemable ,
Participatory
Your Answer Cumulative redeemable , Non- cumulative redeemable
True/False
Question Only individuals can be appointed as directors of the company.
Correct Answer True
Your Answer True
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 Charitable association
Multiple Choice Multiple Answer
Question Who is not entitled to bonus?
Correct Answer An apprentice , Employee employed through contractors
Your Answer Employee employed through contractors
Select The Blank
Question Subject to other provisions of this act every employer shall be bound to
pay every employee in respect of the accounting year commencing on any day in the year
________.
Correct Answer 1979
Your Answer 1959
Multiple Choice Single Answer
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
Select The Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government
Your Answer Central government
Multiple Choice Single Answer
Question When was the minimum wages act passed ?
Correct Answer 1948
Your Answer 1948
True/False
Question Retiring director may be eligible for reappointment.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In which case did the Bombay high court observe the general purpose of
the act?
Correct Answer Arvind mills ltd case
Your Answer Arvind mills ltd case
True/False
Question After completion of Ordinary business other business is transacted at Extra
ordinary General Meeting.
Correct Answer False
Your Answer False
Select The Blank
Question ________shall certify that they have reviewed the balance sheet and profit
and loss account.
Correct Answer CEO
Your Answer CEO
Select The Blank
Question ________ includes legal representative of deceased employer.
Correct Answer Employer
Your Answer Employer
Select The Blank
Question Any payment in respect on ________ can be deducted from the wages of
an employed person.
Correct Answer Fidelity guarantee bond
Your Answer Fidelity guarantee bond
Select The Blank
Question A member shall have right to apply for operations and mismanagement of
the company provided application is made by members not less than ________ or by the
members holding not less than one tenth of total number of shares in the share capital of
the company.
Correct Answer 100
Your Answer 100
Select The Blank
Question A statement of all transactions with the related parties including the basis
shall be placed before the ________.
Correct Answer Audit committee
Your Answer Audit committee
Multiple Choice Multiple Answer
Question The board of directors shall exercise these powers only at board meetings
:-
Correct Answer Power to make calls on shares , Power to issue debentures , Power
to borrow money
Your Answer Power to make calls on shares , Power to issue debentures , Power
to borrow money
Multiple Choice Single Answer
Question Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business
Your Answer Special business
Multiple Choice Multiple Answer
Question What is the board procedure ?
Correct Answer Meeting to be held 4 times in a year , Should not be a gap of more
than 4 months between 2 meetings , Minimum information should be made available
Your Answer Meeting to be held 4 times in a year , Should not be a gap of more
than 4 months between 2 meetings , Minimum information should be made available
Multiple Choice Multiple Answer
Question Conditions on borrowings by PIO are :-
Correct Answer Non-repatriation basis , Loan by inward remittance , Account by
lender in India
Your Answer Current Account , Non-repatriation basis , Loan by inward
remittance