Legal Aspects of Finance - 7

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Match The Following
Question 1 Correct Answer Your Answer
Royalty continuation Share holding Share holding
WOS Royalty payment Owned exchange
Technical collaboration Foreign companies Foreign companies
Automatic route RBI RBI
Select The Blank
Question 2 ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO
Your Answer Treasurer
Multiple Choice Multiple Answer
Question 3 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
Statutory Meeting
Multiple Choice Multiple Answer
Question 4 Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable
association
Your Answer Private limited company , Unlimited company , Charitable
association
True/False
Question 5 Board may appoint additional directors.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 6 Proxy form generally should be :-
Correct Answer Duly stamped and signed by all the joint-holders
Your Answer Duly stamped and signed by all the joint-holders
Select The Blank
Question 7 If an employer derives profit in any of the first ________ years he
has to pay bonus for that year.
Correct Answer 5
Your Answer 5
Multiple Choice Single Answer
Question 8 Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 3500
True/False
Question 9 Every company shall keep a register showing the particulars in
respect of every loan or investment made, guarantee given or
security provided.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 10 Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Your Answer 24 hours before the meeting
Select The Blank
Question 11 A person who stands for directorship other than retiring director
has to give notice to the company at least ________ before the
date of general meeting.
Correct Answer 14 days
Your Answer 14 days
Multiple Choice Multiple Answer
Question 12 Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched
employee
Your Answer Temporary workmen , Part time employee , Retrenched
employee
Multiple Choice Single Answer
Question 13 Minimum number of Directors who should sign annual accounts :-
Correct Answer 2
Your Answer 2
Multiple Choice Multiple Answer
Question 14 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 , Variation
in rights attached to class of shares
Select The Blank
Question 15 First AGM should be held within ________ from closure of
financial year.
Correct Answer 9 months
Your Answer 6 months
Multiple Choice Multiple Answer
Question 16 Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate
Your Answer Chartered Accountant , Management Accountant , Cost & Works
Accountant
Select The Blank
Question 17 ________ of the company has absolute discretion in regard to
inclusion or non inclusion of any matter in the minutes.
Correct Answer Chairman
Your Answer Share-holders who attended the meeting
Multiple Choice Multiple Answer
Question 18 The penalties are levied for which offences done?
Correct Answer Pay less than minimum wages , Pay less than fixed wages ,
Contravenes any rule or order
Your Answer Pay less than minimum wages , Pay less than fixed wages ,
Contravenes any rule or order
True/False
Question 19 Wages includes any travelling allowance for travel concession.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question 20 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
Multiple Choice Single Answer
Question 21 A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Immoral
True/False
Question 22 Every company shall have a qualified and independent audit
committee.
Correct Answer True
Your Answer True
True/False
Question 23 Director can be removed from his post.
Correct Answer True
Your Answer True
True/False
Question 24 The loan to any body corporate shall be made at the rate of
interest not less than that prevailing bank rate as may be
prescribed by Reserve Bank of India.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 25 Who issues a certificate of compliance of conditions of corporate
governance?
Correct Answer Auditors or company secretaries
Your Answer Registrar of companies
Multiple Choice Single Answer
Question 26 As per section 3 who fixes the minimum rate of wages to be paid
to the employees ?
Correct Answer Appropriate government
Your Answer Management
Select The Blank
Question 27 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
Select The Blank
Question 28 Board has power to receive of notice of ________.
Correct Answer Disclosure of interest
Your Answer Disclosure of interest
Multiple Choice Multiple Answer
Question 29 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
Select The Blank
Question 30 The minimum wages act came in force in the year________.
Correct Answer 1948
Your Answer 1948
Multiple Choice Multiple Answer
Question 31 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
Multiple Choice Single Answer
Question 32 What types of rates can be fixed for different zones and
localities?
Correct Answer Different
Your Answer Different
Match The Following
Question 33 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 assistance to
board of directors
Quorum Minimum required persons
for meeting
Minimum required persons
for meeting
Multiple Choice Single Answer
Question 34 The Document spelling out internal management of the Company
is :-
Correct Answer Articles of Association
Your Answer Articles of Association
Select The Blank
Question 35 The minimum wages to the obligations created by the convention
no 26 of ________.
Correct Answer International labour organisation
Your Answer International labour organisation
Select The Blank
Question 36 ________ is annexed to the Directors' Report.
Correct Answer Compliance Report
Your Answer Chairman's Statement/ Speech
Multiple Choice Single Answer
Question 37 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
True/False
Question 38 Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer True
Your Answer True
Select The Blank
Question 39 The auditor has to give his report that the accounts of the
company gives ________.
Correct Answer True & Fair view
Your Answer True & Fair view
Multiple Choice Multiple Answer
Question 40 During the course of audit, auditor is supposed to check :-
Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets
register
Your Answer Transaction Vouchers , Cash and Bank balances , Fixed assets
register
Multiple Choice Multiple Answer
Question 41 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 Multiple Answer
Question 42 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 43 Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question 44 Cap on investment by person resident outside India, for Housing
& Real Estate Sector is :-
Correct Answer 1
Your Answer 1
True/False
Question 45 A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False
Your Answer True
True/False
Question 46 Debenture-holder of a company can ask for annual accounts.
Correct Answer True
Your Answer False
True/False
Question 47 Wages includes the value of any house accommodation or
supply of light and water.
Correct Answer False
Your Answer True