Legal Aspects of Finance - 15

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted
Your Answer Convicted
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
Your Answer False
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
True/False
Question The national labour commission on labour has described the
assessing of the act as landmark in the history of labour
legislation in the country.
Correct Answer True
Your Answer True
Select The Blank
Question Payment of ________ requires registration from RBI.
Correct Answer Royalty
Your Answer Royalty
True/False
Question The Board has power to alter Articles of Association being
internal document.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question A director is deemed to be interested in a contract if he holds
paid up capital of the company exceeding :-
Correct Answer 0.02
Your Answer 0.02
Match The Following
Question Correct Answer Your Answer
Capital Account Guarantee by a person
resident
Accounting Authority
Living Expenses Current Account Current Account
Deposits Capital Account Capital Account
The Adjudicating Authority Power of Classification Guarantee by a person
resident
Multiple Choice Single Answer
Question Any contract or arrangement in which director is interested has
to be recorded in :-
Correct Answer Register of contracts
Your Answer Register of directors
Multiple Choice Single Answer
Question Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer Articles of Association
Your Answer Articles of Association
Select The Blank
Question Every private company should have minimum ________
directors.
Correct Answer Two
Your Answer Two
True/False
Question A General Meeting may also be called by giving shorter notice
than 21 days.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question The Board of directors of the company has power to appoint an
additional director :-
Correct Answer Up to maximum permissible limit
Your Answer Up to maximum permissible limit
Select The Blank
Question Articles of Association are rules for ________.
Correct Answer Internal management
Your Answer Running business of Company
Multiple Choice Multiple Answer
Question WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , Offshore payment , By automatic route
Select The Blank
Question ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO
Your Answer CEO
Multiple Choice Multiple Answer
Question In calculating the limit of all the companies which companies are
excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making
companies
Your Answer Foreign companies , Private Companies , Non Profit making
companies
Multiple Choice Multiple Answer
Question What are the penalties for the offences done ?
Correct Answer Fine which may extend to 6 months , May extend to Rs 500 ,
Fine as well as Rs 500
Your Answer Fine which may extend to 6 months , May extend to Rs 500 ,
Fine as well as Rs 500
Select The Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government
Your Answer Central government
Multiple Choice Multiple Answer
Question Retiring director shall be deemed to be reappointed unless :-
Correct Answer He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
Your Answer He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
Multiple Choice Multiple Answer
Question Describe in brief what does the term wages include?
Correct Answer Remuneration under any award , Settlement between the parties
or order of court , Overtime
Your Answer Remuneration under any award , Settlement between the parties
or order of court , Overtime
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
True/False
Question An independent Director is not an executive director of a
Company.
Correct Answer False
Your Answer True
Select The Blank
Question When a money is raised through ________ it shall disclose to
the audit committee.
Correct Answer Initial public offering
Your Answer Initial public offering
Multiple Choice Multiple Answer
Question Person permanently resident in India can return foreign
exchange by :-
Correct Answer Travelling abroad , As a gift , From AD
Your Answer From AD , Travelling abroad , As a gift
True/False
Question Bonus is an ex gratia payment.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Your Answer 48 hours before the meeting
Select The Blank
Question The minimum wages act came in force in the year________.
Correct Answer 1948
Your Answer 1958
True/False
Question A director is not required to take qualification share.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI
Your Answer NABARD
True/False
Question Wages includes any travelling allowance for travel concession.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Public Company means a company which :-
Correct Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private
company which is subsidiary of public company , Is not a private
company
Your Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private
company which is subsidiary of public company , Is not a private
company
True/False
Question Deductions for income tax, payable by the employed person is
permissible.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the provisions of Companies Act 1956, company can
issue shares with :-
Correct Answer Differential voting rights
Your Answer Differential voting rights
Match The Following
Question Correct Answer Your Answer
Majority members Independent Independent
Audit committee Seek information about
the employee
Independent
Quorum for audit
committee
2 members or 1/3rd of
members
2 members or 1/3rd of
members
Members of audit
committee
Non executive directors Seek information about the
employee
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 29
True/False
Question The independent director is a supplier of a service provider of
the company.
Correct Answer False
Your Answer False
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 Private Company prohibits public to ________ for any shares.
Correct Answer Subscribe
Your Answer Subscribe
Multiple Choice Single Answer
Question Unless the articles of association otherwise provide, every
director has to hold the shares of nominal value of Rs.:-
Correct Answer 5000/-
Your Answer 10000/-
Multiple Choice Multiple Answer
Question The provision related to register are not applicable to :-
Correct Answer Banking company or insurance company , A company whose
principle business is acquisition of shares, stock, debentures or
other securities , A private limited company unless it is a
subsidiary of public company.
Your Answer A private limited company unless it is a subsidiary of public
company. , A listed company
Multiple Choice Single Answer
Question The notice of the meeting be sent to all the directors at their :-
Correct Answer Usual residential address
Your Answer Usual postal address
Multiple Choice Single Answer
Question Maturity period for foreign currency credit by overseas suppliers
is :-
Correct Answer More than 6 months & less 3 years
Your Answer More than 3 months & less 3 years
Select The Blank
Question ________ is a scheduled employment carried out under the
authority of central government.
Correct Answer Competent authority
Your Answer Employer
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
Your 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 If there is any delay in filing Form- 8 &13 beyond 60 days from
the execution of documents for the creation of charge, the
company has to make petition to :-
Correct Answer Company Law Board
Your Answer Company Law Board
Multiple Choice Multiple Answer
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation