Legal Aspects of Finance - 19

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
In which of the companies the bonus act is applicable?
Correct Answer
More than 20 persons employed
Your Answer
More than 20 persons employed
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for import of
goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Multiple Choice Single Answer
Question
Which person is responsible for he payment of wages act ?
Correct Answer
Managers
Your Answer
Managers
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
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
Multiple Choice Multiple Answer
Question
What sums are deductible from gross profit under section 8?
Correct Answer
Amount by way of depreciation , Employment rebate or investment allowance ,
Direct tax
Your Answer
Amount by way of depreciation , Employment rebate or investment allowance ,
Direct tax
Multiple Choice Multiple Answer
Question
What do you mean by wages?
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of money
Your Answer
Remuneration by way of salaries , Allowances , Expressed in terms of money
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
Your Answer
Tramway service or motor transport service engaged carrying passengers of hire or
reward , Dock wharf jetty , Plantation
True/False
Question
A piece rated worker is entitled to bonus.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Multiple Choice Single Answer
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up
Your Answer
Fully paid up
Multiple Choice Single Answer
Question
What do you mean by establishment on private sector?
Correct Answer
Any establishment other than public sector
Your Answer
Any establishment other than public sector
Multiple Choice Multiple Answer
Question
Person permanently resident in India can return foreign exchange by :-
Correct Answer
From AD , Travelling abroad , As a gift
Your Answer
From AD , Travelling abroad , As a gift
True/False
Question
Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
ECB stands for :-
Correct Answer
External Commercial Borrowings
Your Answer
External Commercial Borrowings
Multiple Choice Single Answer
Question
Deductions are authorized under which section?
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Payment of ________ requires registration from RBI.
Correct Answer
Royalty
Your Answer
Royalty
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
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 , Overtime , Travelling allowance
Multiple Choice Multiple Answer
Question
How can you compute available surplus under section 5?
Correct Answer
Gross profit less deductions , Direct tax calculated in accordance to provisions of
section 7 in respect to amount equal to gross profits of the employer for
immediately preceding accounting year
Your Answer
Gross profit less deductions , Direct tax calculated in accordance to provisions of
section 7 in respect to amount equal to gross profits of the employer for
immediately preceding accounting year
True/False
Question
Every company has to appoint an auditor to audit the accounts of the company and
has to fix remuneration to be paid to the auditor.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
FEMA Norms are compatible with :-
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948
Section 3 of wages act
Every employer responsible for payment to employed persons
Every employer responsible for payment to employed persons
Select The Blank
Question
The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Articles of Association are rules for ________.
Correct Answer
Internal management
Your Answer
Internal management
Multiple Choice Multiple Answer
Question
Section 24 provides bar to entertain suits by the court for recovery of wages in so
far as the sum claimed falls within which of the following categories :-
Correct Answer
For which any application claim has already been presented , Direction of claim
already given' , Amount adjudged is not due to penalty
Your Answer
For which any application claim has already been presented , Direction of claim
already given' , Amount adjudged is not due to penalty
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
Your Answer
Less than Rs 1600
Select The Blank
Question
________ of the company has a right to take inspection of the books of account.
Correct Answer
Any Director
Your Answer
Any Director
True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False
Your Answer
False
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
Who are governed by the payment of wages act?
Correct Answer
Employed persons , Salary less than 1600 per month
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than 1200 per
month
Multiple Choice Single Answer
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed
Your Answer
Day on which books of accounts are open
True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled bonus.
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
Select The Blank
Question
First AGM should be held within ________ from closure of financial year.
Correct Answer
9 months
Your Answer
18 months
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
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your Answer
Subscribe
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
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Reduction of capital
Special Resolution
Special Resolution
Appointment of Managing Director
Ordinary Resolution
ROC
Accounting Standards
National Advisory Committee
National Advisory Committee
Select The Blank
Question
For making alterations before ROC, ________ is required.
Correct Answer
Power of Attorney
Your Answer
Resolution authorising alteration
Multiple Choice Multiple Answer
Question
What is the main purpose of the payment of wages act 1936?
Correct Answer
Ensure payment of wages to the employed , Prevent unauthorised deductions ,
Prevent arbitrary fines
Your Answer
Ensure payment of wages to the employed , Prevent unauthorised deductions ,
Prevent arbitrary fines
True/False
Question
Company can not issue shares with differential voting/ dividend rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal document.
Correct Answer
False
Your Answer
True
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
When was the factories act passed?
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since already paid on
original authorised capital.
Correct Answer
False
Your Answer
False