Legal Aspects of Finance

Monday, 3 February 2014

Legal Aspects of Finance - Set 1Multiple Choice Single AnswerQuestionIn which of the companies the bonus act is applicable?Correct AnswerMore than 20 persons employed

Select The BlankQuestionAuthorized dealer may freely open ________ and allow remittance forimport of goods.Correct AnswerLetter of credit

Multiple Choice Single AnswerQuestionWhich person is responsible for he payment of wages act ?Correct AnswerManagers

Multiple Choice Single AnswerQuestionAs per the provisions of Companies Act 1956, company can issue shareswith :-Correct AnswerDifferential voting rights

Multiple Choice Single AnswerQuestionTo whom does the payment of wages act apply to ?Correct AnswerPersons employed in any factory

Multiple Choice Multiple AnswerQuestionWhat sums are deductible from gross profit under section 8?Correct AnswerAmount by way of depreciation , Employment rebate or investmentallowance , Direct tax

Multiple Choice Multiple AnswerQuestionWhat do you mean by wages?Correct AnswerRemuneration by way of salaries , Allowances , Expressed in terms ofmoney

Multiple Choice Multiple AnswerQuestion

What does an industrial or other establishment means as per section2II?Correct AnswerTramway service or motor transport service engaged carryingpassengers of hire or reward , Dock wharf jetty , Plantation

True/FalseQuestionA piece rated worker is entitled to bonus.Correct AnswerTrue

Multiple Choice Single AnswerQuestionsCorrect AnswerIn 1936

Multiple Choice Single AnswerQuestionNo preference shares can be redeemed unless they are :-Correct AnswerFully paid up

Multiple Choice Single AnswerQuestionWhat do you mean by establishment on private sector?Correct AnswerAny establishment other than public sector

Multiple Choice Multiple AnswerQuestionPerson permanently resident in India can return foreign exchange by :-Correct AnswerFrom AD , Travelling abroad , As a gift

True/FalseQuestionWages include any contribution paid by the employer to any pensionfund or provided fund.Correct AnswerFalse

Multiple Choice Single AnswerQuestionECB stands for :-Correct AnswerExternal Commercial Borrowings

Multiple Choice Single AnswerQuestionDeductions are authorized under which section?

Correct AnswerSection 7(2)

Select The BlankQuestionPayment of ________ requires registration from RBI.Correct AnswerRoyalty

Multiple Choice Single AnswerQuestionDefine an employed person under section 2 of the act.Correct AnswerIncludes legal representative of a deceased employed person

Multiple Choice Multiple AnswerQuestionDescribe in brief what does the term wages include?Correct AnswerRemuneration under any award , Settlement between the parties ororder of court , Overtime

Multiple Choice Multiple AnswerQuestionHow can you compute available surplus under section 5?Correct AnswerGross profit less deductions , Direct tax calculated in accordance toprovisions of section 7 in respect to amount equal to gross profitsof the employer for immediately preceding accounting year

True/FalseQuestionEvery company has to appoint an auditor to audit the accounts of thecompany and has to fix remuneration to be paid to the auditor.Correct AnswerTrue

Multiple Choice Single AnswerQuestionFEMA Norms are compatible with :-Correct AnswerFERA

Match The FollowingQuestionCorrect Answer

Section 2(vi)Wages

Wages act1936

Factories act

1948

Section 3 of wages actEvery employer responsible for payment to employed persons

Select The BlankQuestionThe definition of ECB in India is partly in alignment with ________Act.Correct AnswerFERA

Select The BlankQuestionArticles of Association are rules for ________.Correct AnswerInternal management

Multiple Choice Multiple AnswerQuestionSection 24 provides bar to entertain suits by the court for recoveryof wages in so far as the sum claimed falls within which of thefollowing categories :-Correct AnswerFor which any application claim has already been presented ,Direction of claim already given' , Amount adjudged is not due topenalty

Multiple Choice Single AnswerQuestionWhat is the minimum salary under which the persons are covered inthis act?Correct AnswerLess than Rs 1600

Select The BlankQuestion________ of the company has a right to take inspection of the booksof account.Correct AnswerAny Director

True/FalseQuestionThe minimum wages act came in force on 15 march 1968Correct AnswerFalse

Select The BlankQuestionThe recommendations of audit committee relating to financialmanagement shall be ________.Correct AnswerBinding

Multiple Choice Multiple AnswerQuestionWho are governed by the payment of wages act?Correct AnswerEmployed persons , Salary less than 1600 per month

Multiple Choice Single AnswerQuestionWhat do you mean by accounting year?Correct AnswerDay on which books of accounts of the corporation are closed

True/FalseQuestionDirectors' Report may contain details/ state of affairs of itssubsidiaries.Correct AnswerTrue

True/FalseQuestionA part time worker as sweeper engaged in regular business is entitledbonus.Correct AnswerTrue

Multiple Choice Single AnswerQuestionIn which case did the Bombay high court observe the general purposeof the act?Correct AnswerArvind mills ltd case

Select The BlankQuestionFirst AGM should be held within ________ from closure of financialyear.Correct Answer9 months

Multiple Choice Single AnswerQuestionQuorum required to hold a valid meeting can be prescribed in :-Correct AnswerArticles of Association

Select The BlankQuestionPrivate Company prohibits public to ________ for any shares.Correct AnswerSubscribe

Multiple Choice Single AnswerQuestionPayment of wages act came into existence :-Correct AnswerTo ensure regular and timely payment of wages to employed persons


Interim DividendBoard of Directors

Reduction of capitalSpecial Resolution

Appointment of Managing DirectorOrdinary Resolution

Accounting StandardsNational Advisory Committee

Select The BlankQuestionFor making alterations before ROC, ________ is required.Correct AnswerPower of Attorney

Multiple Choice Multiple AnswerQuestionWhat is the main purpose of the payment of wages act 1936?Correct AnswerEnsure payment of wages to the employed , Prevent unauthoriseddeductions , Prevent arbitrary fines

True/FalseQuestionCompany can not issue shares with differential voting/ dividendrights.Correct AnswerFalse

True/FalseQuestionThe Board has power to alter Articles of Association being internaldocument.Correct AnswerFalse

Multiple Choice Multiple AnswerQuestion

What is the board procedure ?Correct AnswerMeeting to be held 4 times in a year , Should not be a gap of morethan 4 months between 2 meetings , Minimum information should be madeavailable

Multiple Choice Single AnswerQuestionWhen was the factories act passed?Correct AnswerIn 1948

True/FalseQuestionNo additional fees is payable on increased authorised capital sincealready paid on original authorised capital.Correct AnswerFalse

Legal Aspects of Finance - 24Legal aspects of finance

Multiple Choice Single AnswerQuestion When was the minimum wages act passed ?Correct Answer 1948

Select The BlankQuestion For Special Resolution, votes cast in favour of the resolution should be________ times more than votes cast against the resolution.Correct Answer 3

Multiple Choice Multiple AnswerQuestion For registering certain resolutions, following documents are submitted :-Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement

Multiple Choice Multiple AnswerQuestion Who are governed by the payment of wages act?Correct Answer Employed persons , Salary less than 1600 per month

Multiple Choice Multiple AnswerQuestion Under which circumstances will the worker not receive wages for full normalworking days ?Correct Answer If failure to work is caused by unwillingness to work , Not byomission of the employer to provide him with work

Multiple Choice Multiple AnswerQuestion What do you mean by wages?Correct Answer Remuneration by way of salaries , Allowances , Expressed in terms ofmoney

Multiple Choice Multiple AnswerQuestion Who is an independent director?Correct Answer Non executive director , Who receives director remuneration , Who isnot related to the promoters

Select The BlankQuestion Board has power to receive of notice of ________.Correct Answer Disclosure of interest

Multiple Choice Single AnswerQuestion Company has to make application to central government, in case ofappointment of managing director is not made accordance with part I & II of scheduleXIII, within :-Correct Answer 90 days

Select The BlankQuestion The ________ issue shall be by way of public issue.Correct Answer NCD

Select The BlankQuestion Under section ________ period in respect of which wages would be paidwould be determined.Correct Answer 3

Question A piece rated worker is entitled to bonus.Correct Answer True

Multiple Choice Single AnswerQuestion What is the minimum salary under which the persons are covered in this act?Correct Answer Less than Rs 1600

Select The BlankQuestion ________ includes legal representative of deceased employer.Correct Answer Employer

Match The FollowingQuestion- Correct Answer

dismissed employee for bonus -Gannon India vs. niranjan das

part time employee entitled to bonus- automobile karmachari sang vs. industrial tribunal1970retrenched employee entitled for bonus'- east Asiatic company vs. industrial tribunal 1961

probationer for bonus-' bank of madura vs. employees union 1970True/FalseQuestion Only individuals can be appointed as directors of the company.Correct Answer True

Multiple Choice Single AnswerQuestion FEMA Norms are compatible with :-Correct Answer FERA

Multiple Choice Multiple AnswerQuestion WOS are allowed to :-Correct Answer Pay royalty , Offshore payment , By automatic route

Multiple Choice Multiple AnswerQuestion The register in respect of every investment or loan made, containsCorrect Answer The name of body corporate , The amount, terms & conditions &purpose of investment or loan or security or guarantee , The date on which the investmentor loan has been made

True/FalseQuestion Deductions for income tax, payable by the employed person is permissible.Correct Answer True

True/FalseQuestion Financial year and calendar year are one and the same thing.Correct Answer False

Multiple Choice Single AnswerQuestion How would you define salary or wage?Correct Answer All remuneration other than in respect of overtime work of the workdone in such employment

Multiple Choice Single AnswerQuestion In case of cost audit, the report of cost auditor has to be submitted to centralgovernment, within :-Correct Answer 120 Days

Multiple Choice Multiple AnswerQuestion Books of account with respect to following are required to be kept :-Correct Answer Money received & expended , Sales & purchases of goods , Assets &liabilities

Multiple Choice Multiple AnswerQuestion Appointment of receiver under sec.137 containtCorrect Answer Name , address and date of appointment of receiver , date on whichthe receiver ceased to actMultiple Choice Single AnswerQuestion In the case of prevention of operation and mismanagement application is tobe made to company law board byCorrect Answer Member

Multiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment has been put to vote & lost

Select The BlankQuestion If an employer derives profit in any of the first ________ years he has to paybonus for that year.Correct Answer 5

True/FalseQuestion Every company has to appoint an auditor to audit the accounts of thecompany and has to fix remuneration to be paid to the auditor.Correct Answer True

True/FalseQuestion Senior managers are members of management, one level below the executivedirector.Correct Answer True

Multiple Choice Multiple AnswerQuestion 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

True/FalseQuestion Board may appoint additional directors.Correct Answer True

Multiple Choice Single AnswerQuestion Which report is received by the shareholders annually ?Correct Answer Directors report

Select The BlankQuestion The recommendations of audit committee relating to financial managementshall be ________.Correct Answer Binding

Select The BlankQuestion Purchase of foreign securities by resident employee of Indian SoftwareCompany, should not exceed ________.Correct Answer US $ 50000

True/FalseQuestion Former director can take inspection of books of account for the years whenhe was director.Correct Answer False

Multiple Choice Single AnswerQuestion A director of a company can be removed by :-Correct Answer Ordinary resolution

Multiple Choice Single AnswerQuestion Compliance Report is signed by :-Correct Answer Company Secretary in practice

Select The BlankQuestion Director has to vacate his office, if he has been ________ by a court of anyoffence involving moral turpitude.Correct Answer Convicted

True/FalseQuestion Any gratuity payable on termination of employment is included in wages.Correct Answer False

Multiple Choice Single AnswerQuestion A director has to vacate his office, if he is adjudged as :-Correct Answer Insolvent

Match The FollowingQuestion- Correct AnswerCirculation- for day,

Sole selling agent -Have exclusive right to sale for company in specified areaAudit committee -Appointed for specific purpose related to auditQuorum Minimum required -persons for meeting Minimum

True/FalseQuestion Employee includes an out worker to whom any article or material are givenout by another person for repair or cleaning.Correct Answer True

Select The BlankQuestion The Postal ballot paper should be returned to the company within ________from the dispatch of ballot paper.Correct Answer 30 days

Multiple Choice Multiple AnswerQuestion Debentures can be :-Correct Answer Redeemable , Convertible , Party convertible and redeemable

Multiple Choice Single AnswerQuestion Single director can sign the annual accounts if :-Correct Answer Only one director in India for the time being

Select The BlankQuestion Copies of annual accounts are to be filed within ________ days from AGMwith ROC.Correct Answer 30 daysLegal Aspects of Finance - 23

Multiple Choice Single AnswerQuestion For which activity FDI is not prohibited?Correct Answer Insurance

Multiple Choice Multiple AnswerQuestion Remuneration to the director may be paid :-Correct Answer Monthly , Quarterly , Annually

Multiple Choice Single AnswerQuestion Payment of wages act came into existence :-Correct Answer To ensure regular and timely payment of wages to employedpersons

Multiple Choice Single AnswerQuestion To safeguard the interest of the company or its shareholders or the publicinterest, the central government, may appoint such number of person as directors to holdoffice for a period not exceeding :-Correct Answer 3 years

Multiple Choice Multiple AnswerQuestion Sole selling agent may be :-Correct Answer An Individual , A firm , A Body corporate

Multiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948

Multiple Choice Single AnswerQuestion Number of shareholders entitled to requisition a meeting shall be carryingCorrect Answer Not less than 10 per cent of voting power

True/FalseQuestion Bonus is an ex gratia payment.Correct Answer False


Multiple Choice Single AnswerQuestion The responsibility of placing the annual accounts before the AGM is onCorrect Answer Board of Directors

True/FalseQuestion Every company shall keep a register showing the particulars in respect ofevery loan or investment made, guarantee given or security provided.Correct Answer True

Multiple Choice Multiple AnswerQuestion Following are the points related to Qualification share that every directorhas to take :-Correct Answer Within two months of date of appointment , If fails to obtain thenhe has to resign from the post , Minimum Share value Rs.5000/-

True/FalseQuestion The loan to any body corporate shall be made at the rate of interest notless than that prevailing bank rate as may be prescribed by Reserve Bank of India.Correct Answer True

True/False

Question An independent Director is not an executive director of a Company.Correct Answer False

True/FalseQuestion Owned foreign exchange is not permitted.Correct Answer False

Select The BlankQuestion Copies of annual accounts are to be filed within ________ days fromAGM with ROC.Correct Answer 30 days

True/FalseQuestion A non executive director is not a substantial shareholder of the company.Correct Answer True

Match The FollowingQuestion -Correct AnswerBifurcation Voted for/ against Chairman

Ordinary resolution- Simple majorityRequisition of members- Not less than 5 % voting powerSpecial resolution Form 23 Voted for/ against

Select The BlankQuestion ________ shall lay before the AGM, the statement of Income &Expenditure in place of Profit & Loss a/c.Correct Answer Charitable Trust


Legal Aspects of Finance - Set 2Multiple Choice Multiple AnswerQuestion What are the powers of the audit committee?Correct Answer To investigate any activity within its terms of reference , To seekinformation from any employee , To obtain outside legal or professional advice

Select The BlankQuestion No loan or investment shall be made or guarantee given by companyunless ________ is passed at the meeting by the board.Correct Answer Resolution

Multiple Choice Multiple AnswerQuestion Which committees are considered for calculating the limit of thecompaniesCorrect Answer Audit committees , Remuneration Committee , ShareholdersGrievance Committee

Select The BlankQuestion The minimum wages to the obligations created by the convention no 26 of________.Correct Answer International labour organisation

True/FalseQuestion A temporary workman is not entitled to bonus though he works for a fewdays in the organisation.Correct Answer False

Multiple Choice Multiple AnswerQuestion 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

Multiple Choice Single AnswerQuestion A company which restricts the right to transfer its shares is :-Correct Answer Private Ltd. Company


Interim Dividend- Board of DirectorsShorter notice -for AGM Private Limited Company ROC

Books of Account –Form 23AA

Accounting Standards -National Advisory Committee

Multiple Choice Multiple AnswerQuestion Preference shares can be :-Correct Answer Cumulative redeemable , Non- cumulative redeemable ,Participatory

True/FalseQuestion Only individuals can be appointed as directors of the company.Correct Answer True

Multiple Choice Multiple AnswerQuestion Director can be appointed without counting the number in :-Correct Answer Private limited company , Unlimited company , Charitableassociation

Multiple Choice Multiple AnswerQuestion Who is not entitled to bonus?Correct Answer An apprentice , Employee employed through contractors

Select The BlankQuestion Subject to other provisions of this act every employer shall be bound topay every employee in respect of the accounting year commencing on any day in the year________.Correct Answer 1979

Multiple Choice Single Answer

Question To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factory

Select The BlankQuestion Under the industrial disputes act 1947________is an appropriategovernment.Correct Answer Central government


True/FalseQuestion Retiring director may be eligible for reappointment.Correct Answer True

Multiple Choice Single AnswerQuestion In which case did the Bombay high court observe the general purpose ofthe act?Correct Answer Arvind mills ltd case

True/FalseQuestion After completion of Ordinary business other business is transacted at Extraordinary General Meeting.Correct Answer False

Select The BlankQuestion ________shall certify that they have reviewed the balance sheet and profitand loss account.Correct Answer CEO


Select The BlankQuestion Any payment in respect on ________ can be deducted from the wages ofan employed person.Correct Answer Fidelity guarantee bond

Select The BlankQuestion A member shall have right to apply for operations and mismanagement ofthe company provided application is made by members not less than ________ or by themembers holding not less than one tenth of total number of shares in the share capital ofthe company.Correct Answer 100

Select The BlankQuestion A statement of all transactions with the related parties including the basisshall be placed before the ________.Correct Answer Audit committee

Multiple Choice Multiple AnswerQuestion The board of directors shall exercise these powers only at board meetings:-Correct Answer Power to make calls on shares , Power to issue debentures , Powerto borrow money

Multiple Choice Single AnswerQuestion Explanatory Statement should be annexed to Notice for :-Correct Answer Special business

Multiple Choice Multiple AnswerQuestion What is the board procedure ?Correct Answer Meeting to be held 4 times in a year , Should not be a gap of morethan 4 months between 2 meetings , Minimum information should be made available

Multiple Choice Multiple AnswerQuestion Conditions on borrowings by PIO are :-Correct Answer Non-repatriation basis , Loan by inward remittance , Account bylender in India


True/FalseQuestion Sectoral cap on investment by person resident outside India on Mass rapidTransport is 50%.Correct Answer False

Select The BlankQuestion If an employer derives profit in any of the first ________ years he has topay bonus for that year.Correct Answer 5


Multiple Choice Single AnswerQuestion Define an employee under section 2 (13) :-Correct Answer Person employed with salary exceeding Rs 3500

True/FalseQuestion Authorized dealer is required to avail license under the exim policy inforce.Correct Answer True

Multiple Choice Single AnswerQuestion The earlier "Fast Track" investments route has been replaced by?Correct Answer Automatic

Multiple Choice Single AnswerQuestion The quorum for the board meeting is one third of the total strength of theboard or two whichever is :-Correct Answer More


Select The BlankQuestion The recommendations of audit committee relating to financialmanagement shall be ________.Correct Answer Binding


Multiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer On repatriation , Non-repatriation , In Rupees

Multiple Choice Multiple AnswerQuestion What do you mean by wages?Correct Answer Remuneration by way of salaries , Allowances , Expressed in termsof money

Multiple Choice Single AnswerQuestion To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factory

Multiple Choice Single AnswerQuestion What is the minimum salary under which the persons are covered in thisact?Correct Answer Less than Rs 1600

Multiple Choice Single AnswerQuestion Define an employed person under section 2 of the act.Correct Answer Includes legal representative of a deceased employed person

Multiple Choice Multiple AnswerQuestion Following are the points related to Qualification share that every directorhas to take :-Correct Answer Minimum Share value Rs.5000/- , Within two months of date ofappointment , If fails to obtain then he has to resign from the post

Match The FollowingQuestion -Correct Answer

Interim Dividend- Board of Directors

Reduction of capital -Special Resolution

Appointment of Managing Director -Ordinary Resolution

Accounting Standards -National Advisory Committee

True/FalseQuestion A General Meeting may also be called by giving shorter notice than 21days.Correct Answer True

Multiple Choice Multiple AnswerQuestion Board's Report shall include :-Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to Reserves

Select The BlankQuestion 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

Multiple Choice Single AnswerQuestion The Balance Sheet should be in the form set out in Part I of :-Correct Answer Schedule VI

True/FalseQuestion Wages includes any remuneration payable under any award or settlementbetween the parties or order of court.Correct Answer True

Multiple Choice Single AnswerQuestion When was the minimum wages act passed ?Correct Answer 1948Your Answer 1948

Question Foreign technical collaborations are permitted.Correct Answer False

True/FalseQuestion Wages includes any travelling allowance for travel concession.Correct Answer False

Multiple Choice Single AnswerQuestion Companies Act presently implemented and adhered by companies is :-Correct Answer Companies Act, 1956


Select The BlankQuestion To avoid conflicts of interest, ________ committee would determine theremuneration packages of the executive directors.Correct Answer Remuneration

Multiple Choice Single AnswerQuestion A director of a company can be removed by :-

Correct Answer Ordinary resolution

True/FalseQuestion The loan to any body corporate shall be made at the rate of interest notless than that prevailing bank rate as may be prescribed by Reserve Bank of India.Correct Answer True

Multiple Choice Single AnswerQuestion A director can hold place of profit by :-Correct Answer Special resolution

Select The BlankQuestion Articles of Association are rules for ________.Correct Answer Internal management

Multiple Choice Multiple AnswerQuestion The board of directors shall exercise these powers only at board meetingsCorrect Answer Power to make calls on shares , Power to issue debentures , Powerto borrow money

Multiple Choice Single AnswerQuestion The period for realization for export of goods from the date of shipment isatCorrect Answer Six month

Multiple Choice Single AnswerQuestion Accounting Standards are issued by :-Correct Answer Institute of Chartered Accountants

Multiple Choice Multiple AnswerQuestion Describe in brief what does the term wages include?Correct Answer Remuneration under any award , Settlement between the parties ororder of court , Overtime

Multiple Choice Multiple AnswerQuestion What is the main purpose of the payment of wages act 1936?Correct Answer Ensure payment of wages to the employed , Prevent unauthoriseddeductions , Prevent arbitrary fines

Select The BlankQuestion ________means all remuneration expressed in terms of money.Correct Answer Wages


Legal Aspects of Finance - Set 3Multiple Choice Multiple AnswerQuestion The Indian company may issue bonus shares to its non residentshareholders subject to :-Correct Answer Held by non resident shareholder , As per acquisition , In the Formof FC-GPR


Section 2(vi) -Wages

Wages act- 1936Factories act- 1948Section 3 of wages act-Every employer responsible for payment to employed persons

Multiple Choice Multiple AnswerQuestion Board may by resolution passed at the meeting delegate the powers to :-Correct Answer Committee of directors , Managing director , Manager

True/FalseQuestion Meeting of the board of Directors shall be held at least 4 times in a year.Correct Answer True

Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation for currentaccount remittances?Correct Answer RBI , Central Govt.

True/FalseQuestion A temporary workman is not entitled to bonus though he works for a fewdays in the organisation.Correct Answer FalseMultiple Choice Single AnswerQuestion Which person is responsible for he payment of wages act ?Correct Answer Managers

Select The BlankQuestion Multimodal ________ making remittance to their agents abroad.Correct Answer Transport operators

Legal Aspects of Finance - 21




Multiple Choice Single AnswerQuestion To safeguard the interest of the company or its shareholders or the publicinterest, the central government, may appoint such number of person as directors to hold

office for a period not exceeding :-Correct Answer 3 years

Multiple Choice Multiple AnswerQuestion Sole selling agent may be :-Correct Answer An Individual , A firm , A Body corporateYour Answer An Individual , A firm , A Body corporateMultiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948

Multiple Choice Single AnswerQuestion Number of shareholders entitled to requisition a meeting shall be carryingCorrect Answer Not less than 10 per cent of voting power



Multiple Choice Single AnswerQuestion The responsibility of placing the annual accounts before the AGM is onCorrect Answer Board of Directors

True/FalseQuestion Every company shall keep a register showing the particulars in respect ofevery loan or investment made, guarantee given or security provided.Correct Answer True

Multiple Choice Multiple AnswerQuestion Following are the points related to Qualification share that every directorhas to take :-Correct Answer Within two months of date of appointment , If fails to obtain thenhe has to resign from the post , Minimum Share value Rs.5000/-

True/FalseQuestion The loan to any body corporate shall be made at the rate of interest notless than that prevailing bank rate as may be prescribed by Reserve Bank of India.Correct Answer TrueTrue/FalseQuestion An independent Director is not an executive director of a Company.Correct Answer False

True/FalseQuestion Owned foreign exchange is not permitted.Correct Answer False




Bifurcation Voted for/ against Chairman

Ordinary resolution- Simple majorityRequisition of members- Not less than 5 % voting powerSpecial resolution Form 23 Voted for/ against


Multiple Choice Multiple AnswerQuestion What are the powers of the audit committee?Correct Answer To investigate any activity within its terms of reference , To seekinformation from any employee , To obtain outside legal or professional advice

Select The BlankQuestion No loan or investment shall be made or guarantee given by companyunless ________ is passed at the meeting by the board.Correct Answer Resolution

Multiple Choice Multiple AnswerQuestion Which committees are considered for calculating the limit of thecompaniesCorrect Answer Audit committees , Remuneration Committee , ShareholdersGrievance Committee


True/FalseQuestion A temporary workman is not entitled to bonus though he works for a fewdays in the organisation.Correct Answer False

Multiple Choice Multiple AnswerQuestion 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,

Multiple Choice Single AnswerQuestion A company which restricts the right to transfer its shares is :-Correct Answer Private Ltd. Company


Interim Dividend- Board of DirectorsShorter notice for AGM Private Limited Company ROC

Books of Account -Form 23AA

Accounting Standards-National Advisory Committee


True/FalseQuestion Only individuals can be appointed as directors of the company.Correct Answer True


Multiple Choice Multiple AnswerQuestion Who is not entitled to bonus?Correct Answer An apprentice , Employee employed through contractors

Select The BlankQuestion Subject to other provisions of this act every employer shall be bound topay every employee in respect of the accounting year commencing on any day in the year________.Correct Answer 1979




True/FalseQuestion Retiring director may be eligible for reappointment.Correct Answer True

Multiple Choice Single AnswerQuestion In which case did the Bombay high court observe the general purpose ofthe act?Correct Answer Arvind mills ltd case

True/FalseQuestion After completion of Ordinary business other business is transacted at Extraordinary General Meeting.Correct Answer False

Select The BlankQuestion ________shall certify that they have reviewed the balance sheet and profitand loss account.Correct Answer CEO


Select The BlankQuestion Any payment in respect on ________ can be deducted from the wages ofan employed person.Correct Answer Fidelity guarantee bond

Select The BlankQuestion A member shall have right to apply for operations and mismanagement ofthe company provided application is made by members not less than ________ or by themembers holding not less than one tenth of total number of shares in the share capital ofthe company.Correct Answer 100

Select The BlankQuestion A statement of all transactions with the related parties including the basisshall be placed before the ________.Correct Answer Audit committee

Multiple Choice Multiple AnswerQuestion The board of directors shall exercise these powers only at board meetings:-Correct Answer Power to make calls on shares , Power to issue debentures , Powerto borrow money

Multiple Choice Single AnswerQuestion Explanatory Statement should be annexed to Notice for :-

Correct Answer Special business

Multiple Choice Multiple AnswerQuestion What is the board procedure ?Correct Answer Meeting to be held 4 times in a year , Should not be a gap of morethan 4 months between 2 meetings , Minimum information should be made available

Multiple Choice Multiple AnswerQuestion Conditions on borrowings by PIO are :-Correct Answer Non-repatriation basis , Loan by inward remittance , Account bylender in India


Multiple Choice Multiple AnswerQuestionDirector can be appointed without counting the number in :-Correct AnswerPrivate limited company , Unlimited company , Charitable association

Multiple Choice Multiple AnswerQuestionWho is entitled to bonus?Correct AnswerTemporary workmen , Part time employee , Retrenched employee

True/FalseQuestionPayment to a scheme of insurance of a post office is not a deduction.Correct AnswerFalse

True/FalseQuestionDeductions for income tax, payable by the employed person is permissible.Correct AnswerTrue

Select The BlankQuestionRBI in consultation with ________ regulates the capital transactions.Correct AnswerCentral govt.

Multiple Choice Multiple AnswerQuestionCompany can take loan from :-Correct AnswerBanks , Financial Institutions , Debenture Holders

Multiple Choice Single AnswerQuestion

Who is empowered to specify the Foreign Exchange transactions limits underFEMA?Correct AnswerReserve Bank of India

Select The BlankQuestionThe minimum wages act came in force in the year________.Correct Answer1948

Select The BlankQuestionUnder section ________ period in respect of which wages would be paid would bedetermined.Correct Answer3

Select The BlankQuestion________ includes legal representative of deceased employer.Correct AnswerEmployer

Multiple Choice Single AnswerQuestionFor which activity FDI is not prohibited?Correct AnswerInsurance

Multiple Choice Multiple AnswerQuestionFollowing Resolutions must be passed by Postal Ballot :-Correct AnswerAlteration in Object Clause , Buy-back of own shares , Variation in rights attachedto class of shares

Select The BlankQuestionIt is the primary ________ of the company to file the documets of creation ofcharge.Correct AnswerResponsibility

Select The BlankQuestionIt is advisable to close the financial year on ________.Correct Answer31st March

Multiple Choice Single AnswerQuestionIf an auditor after his appointment becomes subject to any of the disqualifications, itis treated that the office is :-Correct AnswerVacated

Multiple Choice Multiple AnswerQuestionBoard's Report shall include :-Correct AnswerDividend recommended , Financial position of the company , Amounts transferredto Reserves


Internal auditorEmployee of the company

InsolventA person who is not in a position to pay his dues

Moral turpitudeDoing immoral thingsCall on shareDemand of remaining part of share capital value

Select The BlankQuestionFor Special Resolution, votes cast in favour of the resolution should be ________times more than votes cast against the resolution.Correct Answer3

True/FalseQuestionEvery company shall have a qualified and independent audit committee.Correct AnswerTrue

Multiple Choice Single AnswerQuestionWho issues a certificate of compliance of conditions of corporate governance?Correct AnswerAuditors or company secretaries

True/FalseQuestionWages includes the value of any house accommodation or supply of light andwater.

Correct AnswerFalse

True/FalseQuestionA temporary workman is not entitled to bonus though he works for a few days in theorganisation.Correct AnswerFalse

Multiple Choice Multiple AnswerQuestionPublic limited company's directors have following conditions :-Correct AnswerMinimum number is three , Should be individuals , Have sound mind

True/FalseQuestionDebenture holders are creditors of the company.Correct AnswerTrue

True/FalseQuestionAny gratuity payable on termination of employment is included in wages.Correct AnswerFalse

Multiple Choice Single AnswerQuestionWhat is the optimum combination of Board of Directors?Correct AnswerManaging Directors and Secretary

Multiple Choice Single AnswerQuestionIf date of incorporation is 1.1.2005, first AGM must be held before :-Correct Answer30.6.2006

Match The FollowingQuestionCorrect AnswerYour AnswerInterim DividendBoard of DirectorsBoard of DirectorsShorter notice for AGMPrivate Limited CompanyROC

Books of AccountForm 23AARegistered OfficeAccounting StandardsNational Advisory CommitteeForm 23AA

True/FalseQuestionWages includes any remuneration payable under any award or settlement betweenthe parties or order of court.Correct AnswerTrue

Multiple Choice Single AnswerQuestionPresent limit for giving details of employees in Directors' Report is :-Correct AnswerRs. 2 lac p.m.

Multiple Choice Multiple AnswerQuestionWhat is the role of the audit committee?Correct AnswerReview the annual financial statements , Recommending and appointment ofexternal auditors , Reviewing the company's financial and risk management policies

Multiple Choice Single AnswerQuestionWhat has the national labour omission described about passing of the act?Correct AnswerLandmark in the history of labour legislation in the country

Select The BlankQuestionAs per section ________ it is obligatory on every person responsible for payment.Correct Answer4

True/FalseQuestionFinancial year and calendar year are one and the same thing.Correct AnswerFalse

Multiple Choice Single AnswerQuestionFor public company, quorum for general meeting is :-Correct Answer5 members in person

True/FalseQuestion

Only individuals can be appointed as directors of the company.Correct AnswerTrue

Multiple Choice Multiple AnswerQuestionFDI prohibited activities are :-Correct AnswerRetail trading , Gambling & betting , Housing & real estate

Select The BlankQuestionPreference shareholders have ________ to get dividend over equity share holders.Correct AnswerPreferential right

True/FalseQuestionNo person can be appointed as an auditor of the company who is in full timeemployment.Correct AnswerTrue

True/FalseQuestionAuthorized dealer is required to avail license under the exim policy in force.Correct AnswerTrue

Select The BlankQuestionAs 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 Answer1000

Multiple Choice Single AnswerQuestionAs per section 3 who fixes the minimum rate of wages to be paid to the employees?Correct AnswerAppropriate government

Multiple Choice Multiple AnswerQuestionRemittance completely prohibited on :-Correct AnswerDividend balancing , Telephone expanses , Interest on funds

True/FalseQuestionDefault in placing annual accounts before AGM may result in imprisonment.Correct Answer

True

Multiple Choice Single AnswerQuestionA director of a company can be removed by :-Correct AnswerOrdinary resolution

True/FalseQuestionAfter completion of Ordinary business other business is transacted at Extra ordinaryGeneral Meeting.Correct AnswerFalse

True/FalseQuestionWages includes any travelling allowance for travel concession.Correct AnswerFalse


Legal Aspects of Finance - Set 4Multiple Choice Single AnswerQuestionIn which of the companies the bonus act is applicable?Correct AnswerMore than 20 persons employed

Select The BlankQuestionAuthorized dealer may freely open ________ and allow remittance for import ofgoods.Correct AnswerLetter of credit

Multiple Choice Single AnswerQuestionWhich person is responsible for he payment of wages act ?Correct AnswerManagers

Multiple Choice Single AnswerQuestionAs per the provisions of Companies Act 1956, company can issue shares with :-Correct AnswerDifferential voting rights


QuestionTo whom does the payment of wages act apply to ?Correct AnswerPersons employed in any factory

Multiple Choice Multiple AnswerQuestionWhat sums are deductible from gross profit under section 8?Correct AnswerAmount by way of depreciation , Employment rebate or investment allowance ,Direct tax

Multiple Choice Multiple AnswerQuestionWhat do you mean by wages?Correct AnswerRemuneration by way of salaries , Allowances , Expressed in terms of money

Multiple Choice Multiple AnswerQuestionWhat does an industrial or other establishment means as per section 2II?Correct AnswerTramway service or motor transport service engaged carrying passengers of hire orreward , Dock wharf jetty , Plantation

True/FalseQuestionA piece rated worker is entitled to bonus.Correct AnswerTrue

Multiple Choice Single AnswerQuestionsCorrect AnswerIn 1936

Multiple Choice Single AnswerQuestionNo preference shares can be redeemed unless they are :-Correct AnswerFully paid up

Multiple Choice Single AnswerQuestionWhat do you mean by establishment on private sector?Correct AnswerAny establishment other than public sector

Multiple Choice Multiple AnswerQuestionPerson permanently resident in India can return foreign exchange by :-Correct AnswerFrom AD , Travelling abroad , As a giftTrue/False

QuestionWages include any contribution paid by the employer to any pension fund orprovided fund.Correct AnswerFalse

Multiple Choice Single AnswerQuestionECB stands for :-Correct AnswerExternal Commercial Borrowings

Multiple Choice Single AnswerQuestionDeductions are authorized under which section?Correct AnswerSection 7(2)

Select The BlankQuestionPayment of ________ requires registration from RBI.Correct AnswerRoyalty

Multiple Choice Single AnswerQuestionDefine an employed person under section 2 of the act.Correct AnswerIncludes legal representative of a deceased employed person

Multiple Choice Multiple AnswerQuestionDescribe in brief what does the term wages include?Correct AnswerRemuneration under any award , Settlement between the parties or order of court ,Overtime

Multiple Choice Multiple AnswerQuestionHow can you compute available surplus under section 5?Correct AnswerGross profit less deductions , Direct tax calculated in accordance to provisions ofsection 7 in respect to amount equal to gross profits of the employer forimmediately preceding accounting year

True/FalseQuestionEvery company has to appoint an auditor to audit the accounts of the company andhas to fix remuneration to be paid to the auditor.Correct AnswerTrue


QuestionFEMA Norms are compatible with :-Correct AnswerFERA


Section 2(vi)Wages

Wages act1936

Factories act1948

Section 3 of wages actEvery employer responsible for payment to employed persons

Select The BlankQuestionThe definition of ECB in India is partly in alignment with ________ Act.Correct AnswerFERA

Select The BlankQuestionArticles of Association are rules for ________.Correct AnswerInternal management

Multiple Choice Multiple AnswerQuestionSection 24 provides bar to entertain suits by the court for recovery of wages in sofar as the sum claimed falls within which of the following categories :-Correct AnswerFor which any application claim has already been presented , Direction of claimalready given' , Amount adjudged is not due to penalty

Multiple Choice Single AnswerQuestionWhat is the minimum salary under which the persons are covered in this act?Correct AnswerLess than Rs 1600

Select The BlankQuestion________ of the company has a right to take inspection of the books of account.Correct AnswerAny Director

True/False

QuestionThe minimum wages act came in force on 15 march 1968Correct AnswerFalse

Select The BlankQuestionThe recommendations of audit committee relating to financial management shall be________.Correct AnswerBinding

Multiple Choice Multiple AnswerQuestionWho are governed by the payment of wages act?Correct AnswerEmployed persons , Salary less than 1600 per month

Multiple Choice Single AnswerQuestionWhat do you mean by accounting year?Correct AnswerDay on which books of accounts of the corporation are closed

True/FalseQuestionDirectors' Report may contain details/ state of affairs of its subsidiaries.Correct AnswerTrue

True/FalseQuestionA part time worker as sweeper engaged in regular business is entitled bonus.Correct AnswerTrue

Multiple Choice Single AnswerQuestionIn which case did the Bombay high court observe the general purpose of the act?Correct AnswerArvind mills ltd case

Select The BlankQuestionFirst AGM should be held within ________ from closure of financial year.Correct Answer9 months


QuestionQuorum required to hold a valid meeting can be prescribed in :-Correct AnswerArticles of Association

Select The BlankQuestionPrivate Company prohibits public to ________ for any shares.Correct AnswerSubscribe

Multiple Choice Single AnswerQuestionPayment of wages act came into existence :-Correct AnswerTo ensure regular and timely payment of wages to employed persons


Interim DividendBoard of Directors

Reduction of capitalSpecial Resolution

Appointment of Managing DirectorOrdinary ResolutionROC

Accounting StandardsNational Advisory Committee

Select The BlankQuestionFor making alterations before ROC, ________ is required.Correct AnswerPower of Attorney

Multiple Choice Multiple AnswerQuestionWhat is the main purpose of the payment of wages act 1936?Correct AnswerEnsure payment of wages to the employed , Prevent unauthorised deductions ,Prevent arbitrary fines

True/FalseQuestionCompany can not issue shares with differential voting/ dividend rights.Correct Answer

False

True/FalseQuestionThe Board has power to alter Articles of Association being internal document.Correct AnswerFalseYour AnswerTrueMultiple Choice Multiple AnswerQuestionWhat is the board procedure ?Correct AnswerMeeting to be held 4 times in a year , Should not be a gap of more than 4 monthsbetween 2 meetings , Minimum information should be made availableYour AnswerMeeting to be held 4 times in a year , Should not be a gap of more than 4 monthsbetween 2 meetings , Minimum information should be made availableMultiple Choice Single AnswerQuestionWhen was the factories act passed?Correct AnswerIn 1948Your AnswerIn 1948True/FalseQuestionNo additional fees is payable on increased authorised capital since already paid onoriginal authorised capital.Correct AnswerFalse


True/FalseQuestion A probationer is an employee and as such is not entitled to business.Correct Answer False

True/FalseQuestion Charge includes Mortgage.Correct Answer True

Multiple Choice Multiple AnswerQuestion Which committees are considered for calculating the limit of the companiesCorrect Answer Audit committees , Remuneration Committee , Shareholders GrievanceCommittee

Multiple Choice Single AnswerQuestion Which person is responsible for he payment of wages act ?Correct Answer Managers

Multiple Choice Multiple AnswerQuestion FDI prohibited activities are :-Correct Answer Retail trading , Gambling & betting , Housing & real estate

Multiple Choice Single AnswerQuestion What is computed by the competent authority at concessional rates?Correct Answer Cost of living allowance and cash valueTrue/FalseQuestion Articles of Association is not required to be stamped if Memorandum isadequately stamped.Correct Answer False

Multiple Choice Multiple AnswerQuestion The auditor shall inquire :-Correct Answer Whether transactions of the company which are represented merely by bookentries are not prejudicial to the interest of the company or members , Whetherloans & advances made by the company have been shown as deposits , Whetherpersonal expenses have been charged to revenue account


Multiple Choice Single AnswerQuestion If date of incorporation is 1.1.2005, first AGM must be held before :-Correct Answer 30.6.2006


True/FalseQuestion Wages does not include any gratuity payable on discharge.Correct Answer True

Multiple Choice Multiple AnswerQuestion Remittance completely prohibited on :-Correct Answer Dividend balancing , Telephone expanses , Interest on funds


Audit Report- Opinion on the examination ofbooks of accounts

Auditor -A person who conducts the auditsQualified for audit -Eligible to conduct the auditCost auditor- A cost accountant, who is supposeto conduct cost audit of thecompany.

Select The BlankQuestion Copies of annual accounts are to be filed within ________ days from AGM withROC.Correct Answer 30 days

Select The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic route

Multiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known as minimum piecerate , Guaranteed time rate for those employed in piece work for the purpose ofsecuring to such employees a minimum rate of wages on time work basis

Question How much percentage of block of voting shares does the independent directornot own ?Correct Answer 0.02

True/FalseQuestion An employee employed through contractors on building operations is entitled tobonus.Correct Answer False

True/FalseQuestion A non executive director is not a substantial shareholder of the company.Correct Answer TrueMultiple Choice Multiple AnswerQuestion Directors' Responsibility Statement refers to :-Correct Answer Going concern , Accounting policies , Accounting standards

Multiple Choice Multiple AnswerQuestion Following are the Forms to be submitted to ROC for incorporation of companyCorrect Answer Form 32 , Form 29 , Form 1

True/FalseQuestion The act is undoubtedly a welfare legislation in favour of workers and more thanan essential measure for economic upliftment of the workers in the sweatedindustries.Correct Answer True

Multiple Choice Single AnswerQuestion Authentication of Annual Accounts means :-Correct Answer Correctness of the accounts


Multiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer Vacated

Select The Blank

Question ________ shall lay before the AGM, the statement of Income & Expenditure inplace of Profit & Loss a/c.Correct Answer Charitable Trust

True/FalseQuestion An independent Director is not an executive director of a Company.Correct Answer False


Multiple Choice Multiple AnswerQuestion Director can be appointed without counting the number in :-Correct Answer Private limited company , Unlimited company , Charitable association

Multiple Choice Single AnswerQuestion It should be noted that the company has to pay on loan document the :-Correct Answer Stamp duty

Multiple Choice Single AnswerQuestion Which period results for the company are required to be made available to theboard in the meeting of board of directors?Correct Answer Quarterly results

Multiple Choice Single AnswerQuestion Venture capital Funds are regulated as per the Norms of :-Correct Answer SEBI

True/FalseQuestion FEMA is also applicable to agencies outside India that are controlled byresidents in India.Correct Answer True

True/FalseQuestion Wages include any contribution paid by the employer to any pension fund orprovided fund.Correct Answer False


Legal Aspects of Finance - Set 5Select The BlankQuestion The Postal ballot paper should be returned to the company within ________from the dispatch of ballot paper.Correct Answer 30 days

Select The BlankQuestion The recommendations of audit committee relating to financial managementshall be ________.Correct Answer BindingMultiple Choice Multiple Answer

Question Company can take loan from :-Correct Answer Banks , Financial Institutions , Debenture Holders

Select The BlankQuestion The management should clearly disclose ________ in auditors reportCorrect Answer Contingent liabilities

Match The FollowingQuestion -Correct AnswerCapital Account -Guarantee by a person residentLiving Expenses -Current AccountDeposits -Capital AccountThe Adjudicating -Authority Power of Classification

Select The BlankQuestion Sweeping powers such as search and arrest contained in Foreign Exchange________ Act.Correct Answer Control

Select The BlankQuestion For making alterations before ROC, ________ is required.Correct Answer Power of Attorney

Select The BlankQuestion Preference shareholders have ________ to get dividend over equity shareholders.Correct Answer Preferential right

Select The BlankQuestion For private company, number of members do not include ________.Correct Answer Employees of company

Multiple Choice Single AnswerQuestion Who is empowered to specify the Foreign Exchange transactions limits underFEMA?Correct Answer Reserve Bank of India

Multiple Choice Single AnswerQuestion Long - term borrowings schemes have which maturity period?Correct Answer Eight years

Multiple Choice Multiple AnswerQuestion What are the powers of the audit committee?Correct Answer To investigate any activity within its terms of reference , To seek informationfrom any employee , To obtain outside legal or professional advice

Legal Aspects of Finance - 17True/FalseQuestion A probationer is an employee and as such is not entitled to business.Correct Answer False

True/False

Question Charge includes Mortgage.Correct Answer True

Multiple Choice Multiple AnswerQuestion Which committees are considered for calculating the limit of the companiesCorrect Answer Audit committees , Remuneration Committee , Shareholders GrievanceCommittee


Multiple Choice Multiple AnswerQuestion FDI prohibited activities are :-Correct Answer Retail trading , Gambling & betting , Housing & real estateMultiple Choice Single AnswerQuestion What is computed by the competent authority at concessional rates?Correct Answer Cost of living allowance and cash value

True/FalseQuestion Articles of Association is not required to be stamped if Memorandum isadequately stamped.Correct Answer False

Multiple Choice Multiple AnswerQuestion The auditor shall inquire :-Correct Answer Whether transactions of the company which are represented merely by bookentries are not prejudicial to the interest of the company or members , Whetherloans & advances made by the company have been shown as deposits , Whetherpersonal expenses have been charged to revenue account


Multiple Choice Single AnswerQuestion If date of incorporation is 1.1.2005, first AGM must be held before :-Correct Answer 30.6.2006


True/FalseQuestion Wages does not include any gratuity payable on discharge.Correct Answer True


Match The FollowingQuestion- Correct AnswerAudit Report -Opinion on the examination ofbooks of accounts

Auditor- A person who conducts the auditsQualified for audit- Eligible to conduct the auditCost auditor- A cost accountant, who is supposeto conduct cost audit of thecompany.

Select The BlankQuestion Copies of annual accounts are to be filed within ________ days from AGM withROC.Correct Answer 30 days

Select The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic routeYour Answer Authority routeMultiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known as minimum piecerate , Guaranteed time rate for those employed in piece work for the purpose ofsecuring to such employees a minimum rate of wages on time work basis

Multiple Choice Single AnswerQuestion How much percentage of block of voting shares does the independent directornot own ?Correct Answer 0.02

True/FalseQuestion An employee employed through contractors on building operations is entitled tobonus.Correct Answer False


Multiple Choice Multiple AnswerQuestion Directors' Responsibility Statement refers to :-Correct Answer Going concern , Accounting policies , Accounting standards

Multiple Choice Multiple AnswerQuestion Following are the Forms to be submitted to ROC for incorporation of companyCorrect Answer Form 32 , Form 29 , Form 1

True/FalseQuestion The act is undoubtedly a welfare legislation in favour of workers and more thanan essential measure for economic upliftment of the workers in the sweated

industries.Correct Answer True

Multiple Choice Single AnswerQuestion Authentication of Annual Accounts means :-Correct Answer Correctness of the accounts


Multiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer Vacated

Select The BlankQuestion ________ shall lay before the AGM, the statement of Income & Expenditure inplace of Profit & Loss a/c.Correct Answer Charitable Trust

True/FalseQuestion An independent Director is not an executive director of a Company.Correct Answer False


Multiple Choice Multiple AnswerQuestion Director can be appointed without counting the number in :-Correct Answer Private limited company , Unlimited company , Charitable association

Multiple Choice Single AnswerQuestion It should be noted that the company has to pay on loan document the :-Correct Answer Stamp duty

Multiple Choice Single AnswerQuestion Which period results for the company are required to be made available to theboard in the meeting of board of directors?Correct Answer Quarterly results


True/FalseQuestion FEMA is also applicable to agencies outside India that are controlled byresidents in India.Correct Answer True

True/False

Question Wages include any contribution paid by the employer to any pension fund orprovided fund.Correct Answer False

Select The BlankQuestion The Postal ballot paper should be returned to the company within ________from the dispatch of ballot paper.Correct Answer 30 days

Select The BlankQuestion The recommendations of audit committee relating to financial managementshall be ________.Correct Answer Binding

Multiple Choice Multiple AnswerQuestion Company can take loan from :-Correct Answer Banks , Financial Institutions , Debenture Holders

Select The BlankQuestion The management should clearly disclose ________ in auditors reportCorrect Answer Contingent liabilities

Match The FollowingQuestion -Correct AnswerCapital Account- Guarantee by a person resident

Living Expenses- Current Account

Deposits- Capital Account

The Adjudicating Authority -Power of Classification

Select The BlankQuestion Sweeping powers such as search and arrest contained in Foreign Exchange________ Act.Correct Answer Control

Select The BlankQuestion For making alterations before ROC, ________ is required.Correct Answer Power of Attorney

Select The BlankQuestion Preference shareholders have ________ to get dividend over equity shareholders.Correct Answer Preferential right

Select The BlankQuestion For private company, number of members do not include ________.Correct Answer Employees of company

Multiple Choice Single AnswerQuestion Who is empowered to specify the Foreign Exchange transactions limits under

FEMA?Correct Answer Reserve Bank of India

Multiple Choice Single AnswerQuestion Long - term borrowings schemes have which maturity period?Correct Answer Eight years

Multiple Choice Multiple AnswerQuestion What are the powers of the audit committee?Correct Answer To investigate any activity within its terms of reference , To seek informationfrom any employee , To obtain outside legal or professional advice


Legal Aspects of Finance - Set 6Select The BlankQuestion Copies of annual accounts are to be filed within ________ daysfrom AGM with ROC.Correct Answer 30 days

True/FalseQuestion Sectoral cap on investment by person resident outside India onMass rapid Transport is 50%.Correct Answer False

Select The BlankQuestion If an employer derives profit in any of the first ________ yearshe has to pay bonus for that year.Correct Answer 5


Multiple Choice Single AnswerQuestion Define an employee under section 2 (13) :-Correct Answer Person employed with salary exceeding Rs 3500

True/FalseQuestion Authorized dealer is required to avail license under the eximpolicy in force.Correct Answer True

Multiple Choice Single AnswerQuestion The earlier "Fast Track" investments route has been replacedby?Correct Answer Automatic


Question The quorum for the board meeting is one third of the totalstrength of the board or two whichever is :-Correct Answer More


Select The BlankQuestion The recommendations of audit committee relating to financialmanagement shall be ________.Correct Answer Binding

Select The BlankQuestion The minimum wages to the obligations created by theconvention no 26 of ________.Correct Answer International labour organisation

Multiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer On repatriation , Non-repatriation , In Rupees

Multiple Choice Multiple AnswerQuestion What do youmean by wages?Correct Answer Remuneration by way of salaries , Allowances , Expressed interms of money


Multiple Choice Single AnswerQuestion What is the minimum salary under which the persons arecovered in this act?Correct Answer Less than Rs 1600


Multiple Choice Multiple AnswerQuestion Following are the points related to Qualification share that everydirector has to take :-Correct Answer Minimum Share value Rs.5000/- , Within two months of date ofappointment , If fails to obtain then he has to resign from thepost


Interim Dividend- Board of Directors Ordinary ResolutionReduction of capital Special Resolution National AdvisoryCommitteeAppointment of ManagingDirectorOrdinary Resolution Board of DirectorsAccounting Standards National AdvisoryCommitteeSpecial Resolution

True/FalseQuestion A General Meeting may also be called by giving shorter noticethan 21 days.Correct Answer True

Multiple Choice Multiple AnswerQuestion Board's Report shall include :-Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to Reserves

Select The BlankQuestion As per section 5 in case of railways if the persons employed isless than ________ the wages shall be paid before the expiry of7th day.Correct Answer 1000

Multiple Choice Single AnswerQuestion The Balance Sheet should be in the form set out in Part I of :-Correct Answer Schedule VI

True/FalseQuestion Wages includes any remuneration payable under any award orsettlement between the parties or order of court.Correct Answer True


True/FalseQuestion Foreign technical collaborations are permitted.Correct Answer False



Question Companies Act presently implemented and adhered bycompanies is :-Correct Answer Companies Act, 1956


Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer Remuneration

Multiple Choice Single AnswerQuestion A director of a company can be removed by :-Correct Answer Ordinary resolution

True/FalseQuestion The loan to any body corporate shall be made at the rate ofinterest not less than that prevailing bank rate as may beprescribed by Reserve Bank of India.Correct Answer True

Multiple Choice Single AnswerQuestion A director can hold place of profit by :-Correct Answer Special resolution


Multiple Choice Multiple AnswerQuestion The board of directors shall exercise these powers only at boardmeetings :-Correct Answer Power to make calls on shares , Power to issue debentures ,Power to borrow money

Multiple Choice Single AnswerQuestion The period for realization for export of goods from the date ofshipment is at :-Correct Answer Six month

Multiple Choice Single AnswerQuestion Accounting Standards are issued by :-Correct Answer Institute of Chartered Accountants

Multiple Choice Multiple AnswerQuestion Describe in brief what does the term wages include?Correct Answer Remuneration under any award , Settlement between the partiesor order of court , Overtime

Multiple Choice Multiple AnswerQuestion What is the main purpose of the payment of wages act 1936?Correct Answer Ensure payment of wages to the employed , Preventunauthorised deductions , Prevent arbitrary fines

Select The BlankQuestion ________means all remuneration expressed in terms of money.Correct Answer Wages

Multiple Choice Multiple AnswerQuestion The Indian company may issue bonus shares to its non residentshareholders subject to :-Correct Answer Held by non resident shareholder , As per acquisition , In theForm of FC-GPR

Match The FollowingQuestion- Correct AnswerSection 2(vi)- WagesWages act -1936

Factories act- 1948Section 3 of wages act- Every employerresponsible for payment toemployed persons

Multiple Choice Multiple AnswerQuestion Board may by resolution passed at the meeting delegate thepowers to :-Correct Answer Committee of directors , Managing director , Manager

True/FalseQuestion Meeting of the board of Directors shall be held at least 4 times ina year.Correct Answer True

Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation forcurrent account remittances?Correct Answer RBI , Central Govt.

True/FalseQuestion A temporary workman is not entitled to bonus though he worksfor a few days in the organisation.

Your Answer False


Select The BlankQuestion Multimodal ________ making remittance to their agents abroad.Correct Answer Transport operators

Legal Aspects of Finance - 15LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion Director has to vacate his office, if he has been ________ by acourt of any offence involving moral turpitude.Correct Answer Convicted

True/FalseQuestion There should be a gap of more than 4 months to have themeeting of the board of directors.Correct Answer False

Multiple Choice Multiple AnswerQuestion The Indian company may issue bonus shares to its non residentshareholders subject to :-Correct Answer Held by non resident shareholder , As per acquisition , In theForm of FC-GPR

True/FalseQuestion The national labour commission on labour has described theassessing of the act as landmark in the history of labourlegislation in the country.Correct Answer True

Select The BlankQuestion Payment of ________ requires registration from RBI.Correct Answer Royalty

True/FalseQuestion The Board has power to alter Articles of Association beinginternal document.Correct Answer False

Multiple Choice Single AnswerQuestion A director is deemed to be interested in a contract if he holdspaid up capital of the company exceeding :-

Correct Answer 0.02

Match The FollowingQuestion -Correct AnswerCapital Account- Guarantee by a personresident

Living Expenses- Current AccountDeposits- Capital Account

The Adjudicating Authority- Power of Classification Guarantee by a person

Multiple Choice Single AnswerQuestion Any contract or arrangement in which director is interested hasto be recorded in :-Correct Answer Register of contracts

Multiple Choice Single AnswerQuestion Quorum required to hold a valid meeting can be prescribed in :-Correct Answer Articles of Association

Select The BlankQuestion Every private company should have minimum ________directors.Correct Answer Two

True/FalseQuestion A General Meeting may also be called by giving shorter noticethan 21 days.Correct Answer True

Multiple Choice Single AnswerQuestion The Board of directors of the company has power to appoint anadditional director :-Correct Answer Up to maximum permissible limit


Multiple Choice Multiple AnswerQuestion WOS are allowed to :-Correct Answer Pay royalty , Offshore payment , By automatic route

Select The BlankQuestion ________shall certify that they have reviewed the balance sheetand profit and loss account.Correct Answer CEO

Multiple Choice Multiple Answer

Question In calculating the limit of all the companies which companies areexcluded?Correct Answer Foreign companies , Private Companies , Non Profit makingcompanies

Multiple Choice Multiple AnswerQuestion 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


Multiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lost

Multiple Choice Multiple AnswerQuestion Describe in brief what does the term wages include?Correct Answer Remuneration under any award , Settlement between the partiesor order of court , Overtime


True/FalseQuestion An independent Director is not an executive director of aCompany.Correct Answer False

Select The BlankQuestion When a money is raised through ________ it shall disclose tothe audit committee.Correct Answer Initial public offering

Multiple Choice Multiple AnswerQuestion Person permanently resident in India can return foreignexchange by :-Correct Answer Travelling abroad , As a gift , From AD


Multiple Choice Single AnswerQuestion Proxy form should be deposited with the company :-Correct Answer 48 hours before the meeting

Select The BlankQuestion The minimum wages act came in force in the year________.Correct Answer 1948

True/FalseQuestion A director is not required to take qualification share.Correct Answer False



Multiple Choice Multiple AnswerQuestion Public Company means a company which :-Correct Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is privatecompany which is subsidiary of public company , Is not a privatecompany

True/FalseQuestion Deductions for income tax, payable by the employed person ispermissible.Correct Answer True

Multiple Choice Single AnswerQuestion As per the provisions of Companies Act 1956, company canissue shares with :-Correct Answer Differential voting rights


Majority members- IndependentAudit committee- Seek information aboutthe employee

Quorum for auditcommittee2 members or 1/3rd of

members

Members of auditcommitteeNon executive directors

Multiple Choice Multiple AnswerQuestion Following are the Forms to be submitted to ROC forincorporation of company :-Correct Answer Form 32 , Form 29 , Form 1

True/FalseQuestion The independent director is a supplier of a service provider ofthe company.Correct Answer False

Multiple Choice Single AnswerQuestion What does the minimum wages act determine ?Correct Answer The minimum wages in industries specified in the schedule

Select The BlankQuestion Private Company prohibits public to ________ for any shares.Correct Answer Subscribe

Multiple Choice Single AnswerQuestion Unless the articles of association otherwise provide, everydirector has to hold the shares of nominal value of Rs.:-Correct Answer 5000/-

Multiple Choice Multiple AnswerQuestion The provision related to register are not applicable to :-Correct Answer Banking company or insurance company , A company whoseprinciple business is acquisition of shares, stock, debentures orother securities , A private limited company unless it is asubsidiary of public company.

Multiple Choice Single AnswerQuestion The notice of the meeting be sent to all the directors at their :-Correct Answer Usual residential address

Multiple Choice Single AnswerQuestion Maturity period for foreign currency credit by overseas suppliersis :-

Correct Answer More than 6 months & less 3 years

Select The BlankQuestion ________ is a scheduled employment carried out under theauthority of central government.Correct Answer Competent authority

Multiple Choice Multiple AnswerQuestion Under which circumstances will the worker not receive wages forfull normal working days ?Correct Answer If failure to work is caused by unwillingness to work , Not byomission of the employer to provide him with work

Multiple Choice Single AnswerQuestion If there is any delay in filing Form- 8 &13 beyond 60 days fromthe execution of documents for the creation of charge, thecompany has to make petition to :-Correct Answer Company Law Board

Multiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriation


Select The BlankQuestion Board has power to receive of notice of ________.Correct Answer Disclosure of interest

True/FalseQuestion Wages includes the value of any house accommodation orsupply of light and water.Correct Answer False

Multiple Choice Single AnswerQuestion Maximum fine which can be levied for default in placing accountsbefore AGM is :-Correct Answer Rs. 50,000

Match The FollowingQuestion- Correct Answerallocable surplus -67% surplus in theaccounting year

salary does not include travellingconcessionemployeepublic sectorestablishmentestablishment owned by

governmentawardinterim and finaldetermination of anindustrial dispute-award award

Select The BlankQuestion As per section ________ it is obligatory on every personresponsible for payment.Correct Answer 4


Multiple Choice Single AnswerQuestion What is computed by the competent authority at concessionalrates?Correct Answer Cost of living allowance and cash value

Select The BlankQuestion The auditor has to give his report that the accounts of thecompany gives ________.Correct Answer True & Fair view


Multiple Choice Multiple AnswerQuestion The auditor shall inquire :-Correct Answer Whether transactions of the company which are representedmerely by book entries are not prejudicial to the interest of thecompany or members , Whether loans & advances made by thecompany have been shown as deposits , Whether personalexpenses have been charged to revenue account

True/FalseQuestion Financial year and calendar year are one and the same thing.Correct Answer False

Multiple Choice Single AnswerQuestion Minimum gap required between date of dispatch of notice anddate of AGM is :-Correct Answer 25 days

Select The BlankQuestion First AGM should be held within ________ from closure of

financial year.Correct Answer 9 months

Select The BlankQuestion Every ________ Company has to hold Statutory Meeting of themembers.Correct Answer Public

Select The BlankQuestion A member shall have right to apply for operations andmismanagement of the company provided application is madeby members not less than ________ or by the members holdingnot less than one tenth of total number of shares in the sharecapital of the company.Correct Answer 100

True/FalseQuestion Any gratuity payable on termination of employment is included inwages.Correct Answer False


Multiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriation

Multiple Choice Single AnswerQuestion Deductions are authorized under which section?Correct Answer Section 7(2)


Multiple Choice Single AnswerQuestion Settlement of gift or lawful obligation shall be surrendered within:-Correct Answer Seven days

Select The BlankQuestion The shares with differential voting rights shall not exceed________ of the total share capital issued.Correct Answer 0.25

Multiple Choice Single AnswerQuestion How much percentage of block of voting shares does theindependent director not own ?Correct Answer 0.02

Select The BlankQuestion It is the primary ________ of the company to file the documets ofcreation of charge.Correct Answer Responsibility

Multiple Choice Multiple AnswerQuestion What are the general provisions for punishment of otheroffences?Correct Answer Section 22 provides for the provision , Punishable with fine , Rs500 fine

Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer Remuneration

Multiple Choice Single AnswerQuestion Cap on investment by person resident outside India, for Housing& Real Estate Sector is :-Correct Answer 1

Multiple Choice Multiple AnswerQuestion Board may by resolution passed at the meeting delegate thepowers to :-Correct Answer Committee of directors , Managing director , Manager



Regisrtered Morthgage Means paying stamp dutyon assetsPayment of prescribed feewith R.O.C

Attaching rights -on assets

Mortgage- It is done in respect of

immovable property

Hypothecation It is done in respect of It is done in respect of-movable property



Multiple Choice Multiple AnswerQuestion Person permanently resident in India can return foreignexchange by :-Correct Answer From AD , Travelling abroad , As a gift

Select The BlankQuestion Under section ________ period in respect of which wages wouldbe paid would be determined.Correct Answer 3

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Legal Aspects of Finance

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