LIST OF ATTEMPTED QUESTIONS AND ANSWERS (legal aspect of finance_9)

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

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
Your Answer Exchange Control Board

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
Your Answer 5

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
Your Answer Alteration in Object Clause , Buy-back of own shares

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 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
Your Answer Dividend recommended , Taxes paid , Financial position of the company

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
Your Answer Registrar of companies

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
Your Answer True

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

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

Multiple Choice Single Answer

Question What is the optimum combination of Board of Directors?
Correct Answer Managing Directors and Secretary
Your Answer Executive and non executive Directors

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
Interim Dividend Board of Directors
Shorter notice for AGMPrivate Limited Company
Books of Account Form 23AA
Accounting Standards National Advisory Committee

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.
Your Answer Rs. 5 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
Your Answer 2

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

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 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
Your Answer True

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