Legal Aspects of Finance - 13

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Preference share holders are creditors of the company.
Correct Answer False
Your Answer True
True/False
Question After completion of Ordinary business other business is
transacted at Extra ordinary General Meeting.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate
Your Answer Chartered Accountant , Management Accountant , Cost & Works
Accountant
Multiple Choice Multiple Answer
Question Different classes of shareholders' meetings are :-
Correct Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary
General Meeting
Your Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary
General Meeting
Select The Blank
Question SIA/FIPB approval is necessary where sectoral limits are
________.
Correct Answer Exceeded
Your Answer Exceeded
True/False
Question Every company taking loan from the bank or Financial Institution
has to create a charge on the assets.
Correct Answer True
Your Answer True
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 Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , An Auditor
Multiple Choice Multiple Answer
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.
Your Answer State Bank of India , RBI , Central Govt.
Multiple Choice Multiple Answer
Question Public limited company's directors have following conditions :-
Correct Answer Minimum number is three , Should be individuals , Have sound
mind
Your Answer Minimum number is three , Should be individuals , Have sound
mind
Select The Blank
Question A ________ shall not be made for the appointment of two or
more persons as directors of the company by single resolution in
any general meeting of public company, unless resolution has
been agreed by meeting without any vote being given against it.
Correct Answer Motion
Your Answer Resolution
Multiple Choice Single Answer
Question When was the minimum wages act passed ?
Correct Answer 1948
Your Answer 1948
Select The Blank
Question All transactions of the ________ with the company shall be
disclosed in the annual report.
Correct Answer Non executive chairman
Your Answer Chairman
Multiple Choice Multiple Answer
Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other
Objects
Your Answer Object incidental or ancillary to Main , Other Objects , Main
Object
Select The Blank
Question ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO
Your Answer CEO
True/False
Question Wages does not include an amenity or service or special order of
the appropriate government.
Correct Answer True
Your Answer True
Select The Blank
Question As per section ________ it is obligatory on every person
responsible for payment.
Correct Answer 4
Your Answer 2
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 What does the minimum wages act determine ?
Correct Answer The minimum wages in industries specified in the schedule
Your Answer The minimum wages in industries specified in the schedule
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 Every auditor who has in receipt from the company of the
intimation of his appointment, has to inform Registrar in writing
that he has accepted or refused to accept the appointment within
:-
Correct Answer 30 Days
Your Answer 30 Days
Match The Following
Question Correct Answer Your Answer
Capital Account Guarantee by a person
resident
Current Account
Living Expenses Current Account Personal Account
Deposits Capital Account Capital Account
The Adjudicating Authority Power of Classification Accounting Authority
Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Correctness of the accounts
True/False
Question Every company shall have a qualified and independent audit
committee.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What does salary or wage include?
Correct Answer Dearness allowance
Your Answer Dearness allowance
Multiple Choice Single Answer
Question At any general meeting, unless a poll is demanded, resolution
put to vote is decided by :-
Correct Answer Show of hands
Your Answer Show of hands
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 Single Answer
Question Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business
Your Answer Special resolutions
Select The Blank
Question The auditor has to give his report that the accounts of the
company gives ________.
Correct Answer True & Fair view
Your Answer True & Correct View
Multiple Choice Single Answer
Question How would you define salary or wage?
Correct Answer All remuneration other than in respect of overtime work of the
work done in such employment
Your Answer All remuneration other than in respect of overtime work of the
work done in such employment
Match The Following
Question Correct Answer Your Answer
Notice Circulation for day, time of
meeting
Circulation for day, time of
meeting
Sole selling agent Have exclusive right to
sale for company in
specified area
Have exclusive right to
sale for company in
specified area
Audit committee Appointed for specific
purpose related to audit
Appointed for specific
purpose related to audit
Quorum Minimum required
persons for meeting
Minimum required persons
for meeting
Multiple Choice Single Answer
Question Application for Incorporation of the Company is to be submitted
to :-
Correct Answer Registrar of Companies
Your Answer Registrar of Companies
True/False
Question There is no quorum for board meeting
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What amount of paid up capital should the listed companies
have to comply with the provisions of Clause 49 of listing
agreement ?
Correct Answer Rs 3 crores
Your Answer Rs 6 crores
True/False
Question Authorized dealer is required to avail license under the exim
policy in force.
Correct Answer True
Your Answer True
Select The Blank
Question The detention period where the amount of penalty is greater than
10 million is ________.
Correct Answer 3 years
Your Answer 10 Years
Multiple Choice Multiple Answer
Question What is the role of the audit committee?
Correct Answer Review the annual financial statements , Recommending and
appointment of external auditors , Reviewing the company's
financial and risk management policies
Your Answer Review the annual financial statements , Recommending and
appointment of external auditors , Reviewing the company's
financial and risk management policies
Multiple Choice Single Answer
Question After incorporation of the company, the first auditor is generally
appointed within :-
Correct Answer One Month
Your Answer One Month
True/False
Question Wages includes any remuneration payable under any award or
settlement between the parties or order of court.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Particulars of charge under sec.125 contain :-
Correct Answer Date & description of the instrument creating the charge ,
Amount secured by the charge , Short particulars of the asset to
be charged
Your Answer Date & description of the instrument creating the charge ,
Amount secured by the charge , Short particulars of the asset to
be charged
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
Select The Blank
Question ________ is one of the critical matter which should be decided
by the postal ballot.
Correct Answer Corporate restructuring
Your Answer Appointment of chairman
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 Vacated
Select The Blank
Question Free selling/drawl of foreign exchange to authorized dealer(AD)
for ________.
Correct Answer Current account
Your Answer Current account
True/False
Question Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer True
Your Answer True
Select The Blank
Question The act defines ________ in private sector and public sector.
Correct Answer Establishment
Your Answer Wages
Multiple Choice Multiple Answer
Question The Indian company may issue bonus shares to its non resident
shareholders subject to :-
Correct Answer Held by non resident shareholder , As per acquisition , In the
Form of FC-GPR
Your Answer Held by non resident shareholder , As per acquisition , In the
Form of FC-GPR