Legal Aspects of Finance - 22

Legal Aspects of Finance - 22

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Question The earlier "Fast Track" investments route has been replaced by?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 you mean 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

Reduction of capital -Special Resolution

Appointment of Managing Director -Ordinary Resolution
Accounting Standards -National Advisory Committee

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
Your Answer 1948

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.
Correct 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 - 21

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


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

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


Multiple Choice Single Answer
Question To safeguard the interest of the company or its shareholders or the public
interest, 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 Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948


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

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


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

Multiple Choice Single Answer
Question The responsibility of placing the annual accounts before the AGM is on
Correct Answer Board of Directors


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


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


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

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

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


Match The Following
Question -Correct Answer

Bifurcation Voted for/ against Chairman

Ordinary resolution- Simple majority
Requisition of members- Not less than 5 % voting power
Special resolution Form 23 Voted for/ against

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

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

Select The Blank
Question No loan or investment shall be made or guarantee given by company
unless ________ is passed at the meeting by the board.
Correct Answer Resolution


Multiple Choice Multiple Answer
Question Which committees are considered for calculating the limit of the
companies
Correct Answer Audit committees , Remuneration Committee , Shareholders
Grievance Committee


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


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


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


Match The Following
Question -Correct Answer

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

Books of Account -Form 23AA

Accounting Standards-National Advisory Committee

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


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


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


Select The Blank
Question Subject to other provisions of this act every employer shall be bound to
pay 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 Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government


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

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

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


True/False
Question After completion of Ordinary business other business is transacted at Extra
ordinary General Meeting.
Correct Answer False


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

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

Select The Blank
Question Any payment in respect on ________ can be deducted from the wages of
an employed person.
Correct Answer Fidelity guarantee bond

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

Select The Blank
Question A statement of all transactions with the related parties including the basis
shall be placed before the ________.
Correct Answer Audit committee


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 Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business


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

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

Legal Aspects of Finance - 20

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
Who is entitled to bonus?
Correct Answer
Temporary workmen , Part time employee , Retrenched employee


True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False


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


Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.

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

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


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

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


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


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


Multiple Choice Multiple Answer
Question
Following Resolutions must be passed by Postal Ballot :-
Correct Answer
Alteration in Object Clause , Buy-back of own shares , Variation in rights attached
to class of shares

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


Select The Blank
Question
It is advisable to close the financial year on ________.
Correct Answer
31st March


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


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

Match The Following
Question
Correct Answer

Internal auditor
Employee of the company


Insolvent
A person who is not in a position to pay his dues

Moral turpitude
Doing immoral things
Call on share
Demand of remaining part of share capital value

Select The Blank
Question
For Special Resolution, votes cast in favour of the resolution should be ________
times more than votes cast against the resolution.
Correct Answer
3

True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True


Multiple Choice Single Answer
Question
Who issues a certificate of compliance of conditions of corporate governance?
Correct Answer
Auditors or company secretaries


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


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



Multiple Choice Multiple Answer
Question
Public limited company's directors have following conditions :-
Correct Answer
Minimum number is three , Should be individuals , Have sound mind

True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True


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


Multiple Choice Single Answer
Question
What is the optimum combination of Board of Directors?
Correct Answer
Managing Directors and Secretary

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


Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Shorter notice for AGM
Private Limited Company
ROC
Books of Account
Form 23AA
Registered Office
Accounting Standards
National Advisory Committee
Form 23AA

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


Multiple Choice Single Answer
Question
Present limit for giving details of employees in Directors' Report is :-
Correct Answer
Rs. 2 lac p.m.

Multiple Choice Multiple Answer
Question
What is the role of the audit committee?
Correct Answer
Review the annual financial statements , Recommending and appointment of
external auditors , Reviewing the company's financial and risk management policies

Multiple Choice Single Answer
Question
What has the national labour omission described about passing of the act?
Correct Answer
Landmark in the history of labour legislation in the country

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

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


Multiple Choice Single Answer
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person


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


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

Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share holders.
Correct Answer
Preferential right


True/False
Question
No person can be appointed as an auditor of the company who is in full time
employment.
Correct Answer
True

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

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

Multiple Choice Single Answer
Question
As per section 3 who fixes the minimum rate of wages to be paid to the employees
?
Correct Answer
Appropriate government


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

True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True


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



True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary
General Meeting.
Correct Answer
False

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