Saturday, February 26, 2011

Legal Aspects of Finance - 25

Legal Aspects of Finance - 25

Multiple Choice Single Answer
Question
In which of the companies the bonus act is applicable?
Correct Answer
More than 20 persons employed


Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for
import of goods.
Correct Answer
Letter of credit


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

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

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


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

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 Multiple Answer
Question
What does an industrial or other establishment means as per section
2II?
Correct Answer
Tramway service or motor transport service engaged carrying
passengers of hire or reward , Dock wharf jetty , Plantation

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


Multiple Choice Single Answer
Question
s
Correct Answer
In 1936


Multiple Choice Single Answer
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up

Multiple Choice Single Answer
Question
What do you mean by establishment on private sector?
Correct Answer
Any establishment other than public sector

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

True/False
Question
Wages include any contribution paid by the employer to any pension
fund or provided fund.
Correct Answer
False


Multiple Choice Single Answer
Question
ECB stands for :-
Correct Answer
External Commercial Borrowings


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

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


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
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
How can you compute available surplus under section 5?
Correct Answer
Gross profit less deductions , Direct tax calculated in accordance to
provisions of section 7 in respect to amount equal to gross profits
of the employer for immediately preceding accounting year

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


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

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

Select The Blank
Question
The definition of ECB in India is partly in alignment with ________
Act.
Correct Answer
FERA

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

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

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

Select The Blank
Question
________ of the company has a right to take inspection of the books
of account.
Correct Answer
Any Director

True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False

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


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

Multiple Choice Single Answer
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed

True/False
Question
Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer
True


True/False
Question
A part time worker as sweeper engaged in regular business is entitled
bonus.
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


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


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


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

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


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


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

True/False
Question
Company can not issue shares with differential voting/ dividend
rights.
Correct Answer
False

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


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 Single Answer
Question
When was the factories act passed?
Correct Answer
In 1948


True/False
Question
No additional fees is payable on increased authorised capital since
already paid on original authorised capital.
Correct Answer
False

Legal Aspects of Finance - 24
Legal aspects of finance

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

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

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

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

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

Multiple Choice Multiple Answer
Question Who is an independent director?
Correct Answer Non executive director , Who receives director remuneration , Who is
not related to the promoters


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


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


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



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

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

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

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


Match The Following
Question- Correct Answer

dismissed employee for bonus -Gannon India vs. niranjan das

part time employee entitled to bonus- automobile karmachari sang vs. industrial tribunal
1970
retrenched employee entitled for bonus'- east Asiatic company vs. industrial tribunal 1961

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


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


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

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

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

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


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

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


Multiple Choice Multiple Answer
Question 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 Answer
Question Appointment of receiver under sec.137 containt
Correct Answer Name , address and date of appointment of receiver , date on which
the receiver ceased to act
Multiple Choice Single Answer
Question In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member


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

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


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

True/False
Question Senior managers are members of management, one level below the executive
director.
Correct Answer True

Multiple Choice Multiple Answer
Question 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/False
Question Board may appoint additional directors.
Correct Answer True

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

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


Select The Blank
Question Purchase of foreign securities by resident employee of Indian Software
Company, should not exceed ________.
Correct Answer US $ 50000


True/False
Question Former director can take inspection of books of account for the years when
he was director.
Correct Answer False

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


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

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

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

Match The Following
Question- Correct Answer
Circulation- for day,

Sole selling agent -Have exclusive right to sale for company in specified area
Audit committee -Appointed for specific purpose related to audit
Quorum Minimum required -persons for meeting Minimum

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

Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days


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


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

Select The Blank
Question Copies of annual accounts are to be filed within ________ days from AGM
with ROC.
Correct Answer 30 days
Legal Aspects of Finance - 23

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


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

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