Saturday, February 26, 2011

Legal Aspects of Finance - 16

Legal Aspects of Finance - 16

Select The Blank
Question Copies of annual accounts are to be filed within ________ days
from AGM with ROC.
Correct Answer 30 days

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


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


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


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

True/False
Question Authorized dealer is required to avail license under the exim
policy in force.
Correct Answer True

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Question The earlier "Fast Track" investments route has been replaced
by?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




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


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

Select The Blank
Question The recommendations of audit committee relating to financial
management shall be ________.
Correct Answer Binding

Select The Blank
Question The minimum wages to the obligations created by the
convention no 26 of ________.
Correct Answer International labour organisation

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

Multiple Choice Multiple Answer
Question What do youmean by wages?
Correct Answer Remuneration by way of salaries , Allowances , Expressed in
terms of money


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


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


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

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


Match The Following
Question- Correct Answer

Interim Dividend- Board of Directors Ordinary Resolution
Reduction of capital Special Resolution National Advisory
Committee
Appointment of Managing
Director
Ordinary Resolution Board of Directors
Accounting Standards National Advisory
Committee
Special Resolution

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

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





Select The Blank
Question As per section 5 in case of railways if the persons employed is
less than ________ the wages shall be paid before the expiry of
7th day.
Correct Answer 1000


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

True/False
Question Wages includes any remuneration payable under any award or
settlement between the parties or order of court.
Correct Answer True

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


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


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


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




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

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


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

True/False
Question 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


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


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


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



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


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

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

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

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


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

Match The Following
Question- Correct Answer
Section 2(vi)- Wages
Wages act -1936


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



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


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

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

True/False
Question A temporary workman is not entitled to bonus though he works
for a few days in the organisation.


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





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


Legal Aspects of Finance - 15
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted


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


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


True/False
Question The national labour commission on labour has described the
assessing of the act as landmark in the history of labour
legislation in the country.
Correct Answer True





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

True/False
Question The Board has power to alter Articles of Association being
internal document.
Correct Answer False

Multiple Choice Single Answer
Question A director is deemed to be interested in a contract if he holds
paid up capital of the company exceeding :-
Correct Answer 0.02


Match The Following
Question -Correct Answer
Capital Account- Guarantee by a person
resident

Living Expenses- Current Account
Deposits- Capital Account

The Adjudicating Authority- Power of Classification Guarantee by a person

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

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




Select The Blank
Question Every private company should have minimum ________
directors.
Correct Answer Two

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


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

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


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

Select The Blank
Question ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO

Multiple Choice Multiple Answer
Question In calculating the limit of all the companies which companies are
excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making
companies




Multiple Choice Multiple Answer
Question 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

Select The Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government


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

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

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


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

Select The Blank
Question When a money is raised through ________ it shall disclose to
the audit committee.
Correct Answer Initial public offering



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

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

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


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


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


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

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





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


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


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

Match The Following
Question- Correct Answer

Majority members- Independent
Audit committee- Seek information about
the employee

Quorum for audit
committee
2 members or 1/3rd of
members


Members of audit
committee
Non executive directors




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


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

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

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


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


Multiple Choice Multiple Answer
Question 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.






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


Multiple Choice Single Answer
Question Maturity period for foreign currency credit by overseas suppliers
is :-
Correct Answer More than 6 months & less 3 years

Select The Blank
Question ________ is a scheduled employment carried out under the
authority of central government.
Correct Answer Competent authority


Multiple Choice Multiple Answer
Question 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


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

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



Legal Aspects of Finance - 14

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

True/False
Question Wages includes the value of any house accommodation or
supply of light and water.
Correct Answer False

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


Match The Following
Question- Correct Answer
allocable surplus -67% surplus in the
accounting year


salary does not include travelling
concession
employee
public sector
establishment
establishment owned by
government
award
interim and final
determination of an
industrial dispute-
award award


Select The Blank
Question As per section ________ it is obligatory on every person
responsible for payment.
Correct Answer 4

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

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

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

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


Multiple Choice Multiple Answer
Question 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

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





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


Select The Blank
Question First AGM should be held within ________ from closure of
financial year.
Correct Answer 9 months


Select The Blank
Question Every ________ Company has to hold Statutory Meeting of the
members.
Correct Answer Public

Select The Blank
Question 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


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




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


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


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

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

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


Select The Blank
Question The shares with differential voting rights shall not exceed
________ of the total share capital issued.
Correct Answer 0.25

Multiple Choice Single Answer
Question How much percentage of block of voting shares does the
independent director not own ?
Correct Answer 0.02




Select The Blank
Question It is the primary ________ of the company to file the documets of
creation of charge.
Correct Answer Responsibility


Multiple Choice Multiple Answer
Question What are the general provisions for punishment of other
offences?
Correct Answer Section 22 provides for the provision , Punishable with fine , Rs
500 fine


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


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

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


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



Match The Following
Question- Correct Answer

Regisrtered Morthgage Means paying stamp duty
on assets
Payment of prescribed fee
with 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 Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds

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

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

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




True/False
Question It is not obligatory for the board of directors to lay down the code
of conduct for all the board members.
Correct Answer False


Multiple Choice Multiple Answer
Question Following have the right to inspect books of account :-
Correct Answer Any Director of the company , Officer of SEBI (if authorised) ,
Authorised officer of Government


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


Multiple Choice Single Answer
Question The maximum number of Directors that every company shall
have is :-
Correct Answer Twelve


True/False
Question The act is undoubtedly a welfare legislation in favour of workers
and more than an essential measure for economic upliftment of
the workers in the sweated industries.
Correct Answer True

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




Multiple Choice Multiple Answer
Question 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

True/False
Question A proxy can appoint another proxy.
Correct Answer False


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

True/False
Question Proposal for project exports has been delegated to the approving
authority.
Correct Answer False


Multiple Choice Single Answer
Question Company can increase its maximum number of directors, for
which application is required to be made in :-
Correct Answer Form no 24

True/False
Question Authorized dealer is required to avail license under the exim
policy in force.
Correct Answer True



Multiple Choice Single Answer
Question FEMA allows free selling of foreign exchange to/from whom from
current transaction?
Correct Answer Authorised Dealer

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