Legal Aspects of Finance - 8

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question Books of account with respect to following are required to be
kept :-
Correct Answer Sales & purchases of goods , Assets & liabilities , Money
received & expended
Select The Blank
Question Authorized dealer may freely open ________ and allow
remittance for import of goods.
Correct Answer Letter of credit
Multiple Choice Single Answer
Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Select The Blank
Question First AGM should be held within ________ from closure of
financial year.
Correct Answer 9 months
Multiple Choice Single Answer
Question The earlier "Fast Track" investments route has been replaced
by?
Correct Answer Automatic
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
Select The Blank
Question Any payment in respect on ________ can be deducted from
the wages of an employed person.
Correct Answer Fidelity guarantee bond
True/False
Question Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer True
Multiple Choice Multiple Answer
Question Statutory Report pertains to :-
Correct Answer Funds raised by the company , Utilisation of funds ,
Investments made by the company
Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD
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
Select The Blank
Question The shares with differential voting rights shall not exceed
________ of the total share capital issued.
Correct Answer 0.25
Multiple Choice Single Answer
Question What does salary or wage include?
Correct Answer Dearness allowance
True/False
Question A probationer is an employee and as such is not entitled to
business.
Correct Answer False
Multiple Choice Multiple Answer
Question Ordinary business includes :-
Correct Answer Declaration of dividend , Appointment of directors ,
Appointment of auditor
Multiple Choice Multiple Answer
Question Under which circumstances will the worker not receive wages
for full normal working days ?
Correct Answer If failure to work is caused by unwillingness to work , Not by
omission of the employer to provide him with work
Multiple Choice Single Answer
Question Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business
Multiple Choice Multiple Answer
Question Following are the Forms to be submitted to ROC for
incorporation of company :-
Correct Answer Form 29 , Form 1 , Form 32
True/False
Question The Board has power to alter Articles of Association being
internal document.
Correct Answer False
Match The Following
Question Correct Answer Your Answer
Internal auditor Employee of the company Employee of the company
Insolvent A person who is not in a
position to pay his dues
A person who is not in a
position to pay his dues
Moral turpitude Doing immoral things Doing legal things
Call on share Demand of remaining part of
share capital value
Demand of remaining part of
share capital value
Multiple Choice Single Answer
Question A person can not be appointed as managing or whole time
director in more than :-
Correct Answer Two companies
Multiple Choice Single Answer
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
True/False
Question There should be a gap of more than 4 months to have the
meeting of the board of directors.
Correct Answer False
Multiple Choice Single Answer
Question What is the minimum salary under which the persons are
covered in this act?
Correct Answer Less than Rs 1600
True/False
Question A General Meeting may also be called by giving shorter notice
than 21 days.
Correct Answer True
True/False
Question An employee employed through contractors on building
operations is entitled to bonus.
Correct Answer False
Multiple Choice Single Answer
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Multiple Choice Multiple Answer
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.
Question Sweeping powers such as search and arrest contained in
Foreign Exchange ________ Act.
Correct Answer Control
True/False
Question Wages include any house accommodation, supply of light
medical attendance etc.
Correct Answer False
Multiple Choice Multiple Answer
Question What does an industrial or other establishment means as per
section 2II?
Correct Answer Tramway service or motor transport service engaged carrying
passengers of hire or reward , Dock wharf jetty , Plantation
Multiple Choice Multiple Answer
Question The board of directors shall exercise these powers only at
board meetings :-
Correct Answer Power to issue debentures , Power to borrow money , Power
to make calls on shares
Multiple Choice Single Answer
Question The director after his appointment, has to give consent in
writing to act as director in :-
Correct Answer Form no 29
Select The Blank
Question The management should clearly disclose ________ in
auditors report
Correct Answer Contingent liabilities
Multiple Choice Multiple Answer
Question Current Account transactions include :-
Correct Answer Payments for foreign Trade , Payments for Interest , Foreign
Travel Expenses
Match The Following
Question Correct Answer Your Answer
Interim Dividend Board of Directors Board of Directors
Shorter notice for AGM Private Limited Company Private Limited Company
Books of Account Form 23AA Form 23AA
Accounting Standards National Advisory Committee National Advisory Committee
Multiple Choice Multiple Answer
Question Indian IT. companies are allowed to acquire shares in foreign
companies on following conditions :-
Correct Answer Investment limit of US $ 100 Million , Investment 10 times the
export earnings
True/False
Question Companies listed on recognized stock exchange are not
allowed to invest in foreign companies.
Correct Answer False
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
Select The Blank
Question As per section 5 in case of railways if the persons employed is
less than ________ the wages shall be paid before the expiry
of 7th day.
Correct Answer 1000
Select The Blank
Question The detention period where the amount of penalty is greater
than 10 million is ________.
Correct Answer 3 years
Multiple Choice Multiple Answer
Question Following have the right to inspect books of account :-
Correct Answer Any Director of the company , Officer of SEBI (if authorised) ,
Authorised officer of Government
True/False
Question Employee includes an out worker to whom any article or
material are given out by another person for repair or
cleaning.
Correct Answer True
Select The Blank
Question Free selling/drawl of foreign exchange to authorized
dealer(AD) for ________.
Correct Answer Current account
Multiple Choice Single Answer
Question Whenever the Loan taken from bank or financial institution is
repaid in full, the company has to file Form no 17 &13 within :-
Correct Answer 30 Days
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
Multiple Choice Multiple Answer
Question What are the general provisions for punishment of other
offences?
Correct Answer Section 22 provides for the provision , Punishable with fine ,
Rs 500 fine