Legal Aspects of Finance - 7

Legal Aspects of Finance - 7

Match The Following
Question - Correct Answer

Royalty continuation- Share holding

WOS- Royalty payment
Technical collaboration -Foreign companies
Automatic route- RBI

Select The Blank
Question 2 ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO


Multiple Choice Multiple Answer
Question 3 Different classes of shareholders' meetings are :-
Correct Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary
General Meeting


Multiple Choice Multiple Answer
Question 4 Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable
association


True/False
Question 5 Board may appoint additional directors.
Correct Answer True

Multiple Choice Single Answer
Question 6 Proxy form generally should be :-
Correct Answer Duly stamped and signed by all the joint-holders

Select The Blank
Question 7 If an employer derives profit in any of the first ________ years he
has to pay bonus for that year.
Correct Answer 5

Multiple Choice Single Answer
Question 8 Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500

True/False
Question 9 Every company shall keep a register showing the particulars in
respect of every loan or investment made, guarantee given or
security provided.
Correct Answer True


Multiple Choice Single Answer
Question 10 Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting

Select The Blank
Question 11 A person who stands for directorship other than retiring director
has to give notice to the company at least ________ before the
date of general meeting.
Correct Answer 14 days

Multiple Choice Multiple Answer
Question 12 Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched
employee


Multiple Choice Single Answer
Question 13 Minimum number of Directors who should sign annual accounts :-
Correct Answer 2

Multiple Choice Multiple Answer
Question 14 Following Resolutions must be passed by Postal Ballot :-
Correct Answer Alteration in Object Clause , Buy-back of own shares , Variation
in rights attached to class of shares

Select The Blank
Question 15 First AGM should be held within ________ from closure of
financial year.
Correct Answer 9 months


Multiple Choice Multiple Answer
Question 16 Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate


Select The Blank
Question 17 ________ of the company has absolute discretion in regard to
inclusion or non inclusion of any matter in the minutes.
Correct Answer Chairman

Multiple Choice Multiple Answer
Question 18 The penalties are levied for which offences done?
Correct Answer Pay less than minimum wages , Pay less than fixed wages ,
Contravenes any rule or order

True/False
Question 19 Wages includes any travelling allowance for travel concession.
Correct Answer False


Multiple Choice Single Answer
Question 20 What has the national labour omission described about passing
of the act?
Correct Answer Landmark in the history of labour legislation in the country

Multiple Choice Single Answer
Question 21 A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent

True/False
Question 22 Every company shall have a qualified and independent audit
committee.
Correct Answer True

Question 23 Director can be removed from his post.
Correct Answer True


True/False
Question 24 The loan to any body corporate shall be made at the rate of
interest not less than that prevailing bank rate as may be
prescribed by Reserve Bank of India.
Correct Answer True


Multiple Choice Single Answer
Question 25 Who issues a certificate of compliance of conditions of corporate
governance?
Correct Answer Auditors or company secretaries

Multiple Choice Single Answer
Question 26 As per section 3 who fixes the minimum rate of wages to be paid
to the employees ?
Correct Answer Appropriate government


Select The Blank
Question 27 Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted


Select The Blank
Question 28 Board has power to receive of notice of ________.
Correct Answer Disclosure of interest


Multiple Choice Multiple Answer
Question 29 Section 24 provides bar to entertain suits by the court for
recovery of wages in so far as the sum claimed falls within which
of the following categories :-
Correct Answer For which any application claim has already been presented ,
Direction of claim already given' , Amount adjudged is not due to
penalty

Select The Blank
Question 30 The minimum wages act came in force in the year________.
Correct Answer 1948

Multiple Choice Multiple Answer
Question 31 Public limited company's directors have following conditions :-
Correct Answer Minimum number is three , Should be individuals , Have sound
mind

Multiple Choice Single Answer
Question 32 What types of rates can be fixed for different zones and
localities?
Correct Answer Different


Match The Following
Question 33 -Correct Answer

Notice- Circulation for day, time of
meeting


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


Multiple Choice Single Answer
Question 34 The Document spelling out internal management of the Company
is :-
Correct Answer Articles of Association

Select The Blank
Question 35 The minimum wages to the obligations created by the convention
no 26 of ________.
Correct Answer International labour organisation


Select The Blank
Question 36 ________ is annexed to the Directors' Report.
Correct Answer Compliance Report

Multiple Choice Single Answer
Question 37 Every auditor who has in receipt from the company of the
intimation of his appointment, has to inform Registrar in writing
that he has accepted or refused to accept the appointment within
:-
Correct Answer 30 Days


True/False
Question 38 Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer True


Select The Blank
Question 39 The auditor has to give his report that the accounts of the
company gives ________.
Correct Answer True & Fair view

Multiple Choice Multiple Answer
Question 40 During the course of audit, auditor is supposed to check :-
Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets
register


Multiple Choice Multiple Answer
Question 41 Under which circumstances will the worker not receive wages for
full normal working days ?
Correct Answer If failure to work is caused by unwillingness to work , Not by
omission of the employer to provide him with work

Multiple Choice Multiple Answer
Question 42 What do you mean by wages?
Correct Answer Remuneration by way of salaries , Allowances , Expressed in
terms of money


Multiple Choice Multiple Answer
Question 43 Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate

Multiple Choice Single Answer
Question 44 Cap on investment by person resident outside India, for Housing
& Real Estate Sector is :-
Correct Answer 1

True/False
Question 45 A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False


True/False
Question 46 Debenture-holder of a company can ask for annual accounts.
Correct Answer True


True/False
Question 47 Wages includes the value of any house accommodation or
supply of light and water.
Correct Answer False

Legal Aspects of Finance - 6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question 1 Who has not prescribed particular set of documentation for current account
remittances?
Correct Answer RBI , Central Govt.

True/False
Question 2 Government can authorise for supply of essential commodities at
concessional rates and pay wages in kind.
Correct Answer True

Multiple Choice Multiple Answer
Question 3 What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum
piece rate , Guaranteed time rate for those employed in piece work for the
purpose of securing to such employees a minimum rate of wages on time
work basis


Multiple Choice Multiple Answer
Question 4 Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other Objects

True/False
Question 5 Bonus is an ex gratia payment.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question 6 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


Multiple Choice Single Answer
Question 7 Whenever the Loan taken from bank or financial institution is repaid in full,
the company has to file Form no 17 &13 within :-
Correct Answer 30 Days


Multiple Choice Multiple Answer
Question 8 Ordinary business includes :-
Correct Answer Declaration of dividend , Appointment of directors , Appointment of auditor

True/False
Question 9 Retiring director may be eligible for reappointment.
Correct Answer True


Select The Blank
Question 10 The act defines ________ in private sector and public sector.
Correct Answer Establishment


Match The Following
Question 11- 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 12 Financial year and calendar year are one and the same thing.
Correct Answer False

True/False
Question 13 Wages includes any remuneration payable under any award or settlement
between the parties or order of court.
Correct Answer True

Select The Blank
Question 14 For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney

Multiple Choice Multiple Answer
Question 15 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

Multiple Choice Single Answer
Question 16 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 17 The director shall not be a member of more than how many committees
across all the companies in which he is a director?
Correct Answer 10

Multiple Choice Single Answer
Question 18 The maximum number of Directors that every company shall have is :-
Correct Answer Twelve


Select The Blank
Question 19 The uses and applications of the funds raised shall be disclosed to the audit
committee on a ________basis.
Correct Answer Quarterly


Multiple Choice Multiple Answer
Question 20 Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually

True/False
Question 21 Wages does not include an amenity or service or special order of the
appropriate government.
Correct Answer True

Select The Blank
Question 22 Free selling/drawl of foreign exchange to authorized dealer(AD) for
________.
Correct Answer Current account

Select The Blank
Question 23 WOS can make payment of royalty by ________ route.
Correct Answer Automatic route


Multiple Choice Single Answer
Question 24 Which person is responsible for he payment of wages act ?
Correct Answer Managers


Multiple Choice Multiple Answer
Question 25 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 26 In case a company has a non executive chairman, than how much proportion
of the board should comprise of a independent directors?
Correct Answer 1/3rd

Select The Blank
Question 27 An auditor appointed in a ________ vacancy shall hold office until the
conclusion of next annual general meeting.
Correct Answer Casual


Multiple Choice Multiple Answer
Question 28 FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate

Select The Blank
Question 29 The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities

True/False
Question 30 Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer False

Multiple Choice Multiple Answer
Question 31 WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route

Multiple Choice Single Answer
Question 32 What amount of paid up capital should the listed companies have to comply
with the provisions of Clause 49 of listing agreement ?
Correct Answer Rs 3 crores

True/False
Question 33 The minimum wages act came in force on 15 march 1968
Correct Answer False


Match The Following
Question 34 -Correct Answer

Remuneration policy -Remuneration committee

Board of directors- Board procedure
Audit committee- Qualified and independent
audit committee

Net worth more than 25 corers -Comply with clause 49

Multiple Choice Multiple Answer
Question 35 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.

Select The Blank
Question 36 The form should be filled within ________ days from the date of execution of
document.
Correct Answer 30 days
Multiple Choice Single Answer
Question 37 To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory

True/False
Question 38 A proxy can appoint another proxy.
Correct Answer False


Multiple Choice Single Answer
Question 39 What does the minimum wages act determine ?
Correct Answer The minimum wages in industries specified in the schedule

Select The Blank
Question 40 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

Multiple Choice Multiple Answer
Question 41 Current Account transactions are permitted if payment is made out of :-
Correct Answer EEFC Account , RFC Account

Multiple Choice Single Answer
Question 42 A company which restricts the right to transfer its shares is :-
Correct Answer Private Ltd. Company


Select The Blank
Question 43 ________ shall lay before the AGM, the statement of Income & Expenditure
in place of Profit & Loss a/c.
Correct Answer Charitable Trust

True/False
Question 44 Company may have nominee director.
Correct Answer True

Multiple Choice Single Answer
Question 45 In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member


Multiple Choice Single Answer
Question 46 A person can not be appointed as managing or whole time director in more
than :-
Correct Answer Two companies


Select The Blank
Question 47 If the articles are silent who will be the ________ director of the company, the
subscribers to the members shall deemed to be directors of the company.
Correct Answer First

Legal Aspects of Finance - 4




Select The Blank
Question
The form should be filled within ________ days from the date of execution of document.
Correct Answer
30 days



Multiple Choice Single Answer
Question
The requisite registration fees is payable to ROC depending upon
Correct Answer
Authorised Capital of the Company

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

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


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/-



Select The Blank
Question
The detention period where the amount of penalty is greater than 10 million is ________.
Correct Answer
3 years


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


Multiple Choice Single Answer
Question
Audit committee shall consist of not less than :-
Correct Answer
Three directors


Select The Blank
Question
If the articles are silent who will be the ________ director of the company, the subscribers to the members shall deemed to be directors of the company.
Correct Answer
First


True/False
Question
Debenture-holder of a company can ask for annual accounts.
Correct Answer
True



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


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



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


Multiple Choice Single Answer
Question
Any contravention of provisions of FEMA will attract penalty upto :-
Correct Answer
Rs. 200000

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


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

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

True/False
Question
Companies listed on recognized stock exchange are not allowed to invest in foreign companies.
Correct Answer
False


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

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
An employee employed through contractors on building operations is entitled to bonus.
Correct Answer
False


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 Multiple Answer
Question
Statutory Report pertains to :-
Correct Answer
Funds raised by the company , Utilisation of funds , Investments made by the company

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


Select The Blank
Question
The chairman of the audit committee shall attend ________ to provide clarification on matters relating to audit.
Correct Answer
Annual general meeting


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


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


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


Multiple Choice Single Answer
Question
Declaration of Compliance with requirements of the Companies Act
Correct Answer
Form 1

Multiple Choice Single Answer
Question
Where does the company publish the compensation philosophy and the statement entitled compensation in respect of the non executive directors?
Correct Answer
Annual report


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
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


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
Particulars of charge under sec.125 contain :-
Correct Answer
Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged


Match The Following
Question
Correct Answer

Remuneration policy
Remuneration committee


Board of directors
Board procedure


Audit committee
Qualified and independent audit committee


Net worth more than 25 corers
Comply with clause 49

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


True/False
Question
Company may have alternate director.
Correct Answer
True
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

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


Multiple Choice Single Answer
Question
What right does the payment of bonus act give ?
Correct Answer
Statutory right to share in profits

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


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

Select The Blank
Question
Purchase of foreign securities by resident employee of Indian Software Company, should not exceed ________.
Correct Answer US $ 50000
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
Every company shall have a qualified and independent audit committee.
Correct Answer
True


Match The Following
Question
Correct Answer

Registration fees
Authorised -Capital of the Company

Certified resolution
Form 23

Activities of company
Memorandum of Association

Situation of registered office
Form 18