Legal Aspects of Finance - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question 1 Who has not prescribed particular set of documentation for current account
remittances?
Correct Answer RBI , Central Govt.
Your Answer RBI , Central Govt.
True/False
Question 2 Government can authorise for supply of essential commodities at
concessional rates and pay wages in kind.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question 3 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 Multiple Answer
Question 4 Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other Objects
Your Answer Main Object , Object incidental or ancillary to Main , Other Objects
True/False
Question 5 Bonus is an ex gratia payment.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question 6 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

Multiple Choice Single Answer
Question 7 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
Your Answer 45 Dyas
Multiple Choice Multiple Answer
Question 8 Ordinary business includes :-
Correct Answer Declaration of dividend , Appointment of directors , Appointment of auditor
Your Answer Declaration of bonus , Declaration of dividend , Appointment of directors
True/False
Question 9 Retiring director may be eligible for reappointment.
Correct Answer True
Your Answer False
Select The Blank
Question 10 The act defines ________ in private sector and public sector.
Correct Answer Establishment
Your Answer Establishment
Match The Following
Question 11 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 Ordinary Resolution
Accounting Standards National Advisory Committee National Advisory Committee
True/False
Question 12 Financial year and calendar year are one and the same thing.
Correct Answer False
Your Answer False
True/False
Question 13 Wages includes any remuneration payable under any award or settlement
between the parties or order of court.
Correct Answer True
Your Answer True
Select The Blank
Question 14 For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Resolution authorising alteration
Multiple Choice Multiple Answer
Question 15 The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members ,
Whether loans & advances made by the company have been shown as
deposits , Whether personal expenses have been charged to revenue
account
Your Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members ,
Whether loans & advances made by the company have been shown as
deposits , Whether personal expenses have been charged to revenue
account
Multiple Choice Single Answer
Question 16 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
Multiple Choice Single Answer
Question 17 The director shall not be a member of more than how many committees
across all the companies in which he is a director?
Correct Answer 10
Your Answer 3
Multiple Choice Single Answer
Question 18 The maximum number of Directors that every company shall have is :-
Correct Answer Twelve
Your Answer Eleven
Select The Blank
Question 19 The uses and applications of the funds raised shall be disclosed to the audit
committee on a ________basis.
Correct Answer Quarterly
Your Answer Quarterly
Multiple Choice Multiple Answer
Question 20 Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Monthly , Quarterly , Annually
True/False
Question 21 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 22 Free selling/drawl of foreign exchange to authorized dealer(AD) for
________.
Correct Answer Current account
Your Answer Current account
Select The Blank
Question 23 WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Automatic route
Multiple Choice Single Answer
Question 24 Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Administrators
Multiple Choice Multiple Answer
Question 25 A person can not be appointed as director of the company if :-
Correct Answer He is found to be of unsound mind , He is declared as an insolvent , He has
not taken qualification shares
Your Answer He is found to be of unsound mind , He is declared as an insolvent , He has
not taken qualification shares

Multiple Choice Single Answer
Question 26 In case a company has a non executive chairman, than how much proportion
of the board should comprise of a independent directors?
Correct Answer 1/3rd
Your Answer 1/3rd
Select The Blank
Question 27 An auditor appointed in a ________ vacancy shall hold office until the
conclusion of next annual general meeting.
Correct Answer Casual
Your Answer Emergency
Multiple Choice Multiple Answer
Question 28 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 29 The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Contingent liabilities
True/False
Question 30 Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question 31 WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , By automatic route
Multiple Choice Single Answer
Question 32 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 5 crores
True/False
Question 33 The minimum wages act came in force on 15 march 1968
Correct Answer False
Your Answer False
Match The Following
Question 34 Correct Answer Your Answer
Remuneration policy Remuneration committee Board procedure
Board of directors Board procedure Annexure 1C
Audit committee Qualified and independent
audit committee
Qualified and independent
audit committee
Net worth more than 25 corers Comply with clause 49 Comply with clause 49
Multiple Choice Multiple Answer
Question 35 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 Banking company or insurance company , A company whose principle
business is acquisition of shares, stock, debentures or other securities , A
listed company
Select The Blank
Question 36 The form should be filled within ________ days from the date of execution of
document.
Correct Answer 30 days
Your Answer 30 days
Multiple Choice Single Answer
Question 37 To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
True/False
Question 38 A proxy can appoint another proxy.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question 39 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 40 A member shall have right to apply for operations and mismanagement of the
company provided application is made by members not less than ________
or by the members holding not less than one tenth of total number of shares
in the share capital of the company.
Correct Answer 100
Your Answer 100
Multiple Choice Multiple Answer
Question 41 Current Account transactions are permitted if payment is made out of :-
Correct Answer EEFC Account , RFC Account
Your Answer Current Account , EEFC Account , RFC Account
Multiple Choice Single Answer
Question 42 A company which restricts the right to transfer its shares is :-
Correct Answer Private Ltd. Company
Your Answer Public Ltd Company
Select The Blank
Question 43 ________ 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 44 Company may have nominee director.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question 45 In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member

Your Answer Central government
Multiple Choice Single Answer
Question 46 A person can not be appointed as managing or whole time director in more
than :-
Correct Answer Two companies
Your Answer Two companies
Select The Blank
Question 47 If the articles are silent who will be the ________ director of the company, the
subscribers to the members shall deemed to be directors of the company.
Correct Answer First
Your Answer Full time