Legal Aspects of Finance - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
Unlimited company , Charitable association
Multiple Choice Multiple Answer
Question
Who is entitled to bonus?
Correct Answer
Temporary workmen , Part time employee , Retrenched employee
Your Answer
Temporary workmen , Part time employee , Retrenched employee
True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
True
True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True
Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.
Multiple Choice Multiple Answer
Question
Company can take loan from :-
Correct Answer
Banks , Financial Institutions , Debenture Holders
Your Answer
Banks , Financial Institutions , Debenture Holders
Multiple Choice Single Answer
Question
Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer
Reserve Bank of India
Your Answer
Exchange Control Board
Select The Blank
Question
The minimum wages act came in force in the year________.
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
Under section ________ period in respect of which wages would be paid would be
determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer
Multiple Choice Single Answer
Question
For which activity FDI is not prohibited?
Correct Answer
Insurance
Your Answer
Insurance
Multiple Choice Multiple Answer
Question
Following Resolutions must be passed by Postal Ballot :-
Correct Answer
Alteration in Object Clause , Buy-back of own shares , Variation in rights attached
to class of shares
Your Answer
Alteration in Object Clause , Buy-back of own shares
Select The Blank
Question
It is the primary ________ of the company to file the documets of creation of
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank
Question
It is advisable to close the financial year on ________.
Correct Answer
31st March
Your Answer
31st March
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
Multiple Choice Multiple Answer
Question
Board's Report shall include :-
Correct Answer
Dividend recommended , Financial position of the company , Amounts transferred
to Reserves
Your Answer
Dividend recommended , Taxes paid , Financial position of the company
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Employee of the company
Doing legal things
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 immoral things
Call on share
Demand of remaining part of share capital value
Demand of remaining part of share capital value
Select The Blank
Question
For Special Resolution, votes cast in favour of the resolution should be ________
times more than votes cast against the resolution.
Correct Answer
3
Your Answer
3
True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Who issues a certificate of compliance of conditions of corporate governance?
Correct Answer
Auditors or company secretaries
Your Answer
Registrar of companies
True/False
Question
Wages includes the value of any house accommodation or supply of light and
water.
Correct Answer
False
Your Answer
False
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
True
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
True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True
True/False
Question
Any gratuity payable on termination of employment is included in wages.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
What is the optimum combination of Board of Directors?
Correct Answer
Managing Directors and Secretary
Your Answer
Executive and non executive Directors
Multiple Choice Single Answer
Question
If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer
30.6.2006
Your Answer
30.6.2006
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
Registered Office
Accounting Standards
National Advisory Committee
Form 23AA
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
True
Multiple Choice Single Answer
Question
Present limit for giving details of employees in Directors' Report is :-
Correct Answer
Rs. 2 lac p.m.
Your Answer
Rs. 5 lac p.m.
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
What has the national labour omission described about passing of the act?
Correct Answer
Landmark in the history of labour legislation in the country
Your Answer
Landmark in the history of labour legislation in the country
Select The Blank
Question
As per section ________ it is obligatory on every person responsible for payment.
Correct Answer
4
Your Answer
2
True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Only individuals can be appointed as directors of the company.
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
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
No person can be appointed as an auditor of the company who is in full time
employment.
Correct Answer
True
Your Answer
True
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
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
Your Answer
1000
Multiple Choice Single Answer
Question
As per section 3 who fixes the minimum rate of wages to be paid to the employees
?
Correct Answer
Appropriate government
Your Answer
Appropriate government
Multiple Choice Multiple Answer
Question
Remittance completely prohibited on :-
Correct Answer
Dividend balancing , Telephone expanses , Interest on funds
Your Answer
Dividend balancing , Telephone expanses , Interest on funds
True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
A director of a company can be removed by :-
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary
General Meeting.
Correct Answer
False
Your Answer
True
True/False
Question
Wages includes any travelling allowance for travel concession.
Correct Answer
False
Your Answer
False