Legal Aspects of Finance

Monday, 3 February 2014
Legal Aspects of Finance - Set 1

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

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

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

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

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

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

Question
s
Correct Answer
In 1936

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

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

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

Question
ECB stands for :-
Correct Answer
External Commercial Borrowings

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Question FEMA Norms are compatible with :-
Correct Answer FERA

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

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

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

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

Question Books of account with respect to following are required to be kept :-
Correct Answer Money received & expended , Sales & purchases of goods , Assets &
liabilities

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

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

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

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.

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

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.

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

Match The Following
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.

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

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.

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

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

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

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

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

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

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.


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

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.

True/False
Question Owned foreign exchange is not permitted.

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

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
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

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.

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

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

Match The Following

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

Books of Account Form 23AA

Accounting Standards -National Advisory Committee

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

True/False
Correct Answer True

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

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

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

Correct Answer 1948

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

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.

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

Select The Blank

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

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

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

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

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

Select The Blank
AGM with ROC.

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

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


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

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

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

persons

Select The Blank
Question The recommendations of audit committee relating to financial

Select The Blank
________.

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

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


Question What is the minimum salary under which the persons are covered in this
act?

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

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


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

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

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

Correct Answer 1948
Your Answer 1948

Question Foreign technical collaborations are permitted.

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

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


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


True/False
Correct Answer True

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

to borrow money

Question The period for realization for export of goods from the date of shipment is
at
Correct Answer Six month

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

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

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

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

Section 2(vi) -Wages

Wages act- 1936
Factories act- 1948
Section 3 of wages act-Every employer responsible for payment to employed persons

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

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

True/False
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




persons

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

Your Answer An Individual , A firm , A Body corporate
Question When was the factories act passed?
Correct Answer In 1948

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 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

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
Correct Answer True
True/False

True/False
Question Owned foreign exchange is not permitted.

Select The Blank
AGM with ROC.

True/False
Correct Answer True

Match The Following

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

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

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

Select The Blank
________.

True/False

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,

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

Match The Following

Shorter notice for AGM Private Limited Company ROC

Books of Account -Form 23AA

Accounting Standards-National Advisory Committee

Participatory

True/False
Correct Answer True

association

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


Select The Blank
government.

Correct Answer 1948

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

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.

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

Select The Blank

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

:-
to borrow money

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

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

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


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

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.

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

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

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

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

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

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

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

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

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

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
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

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

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

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

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

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

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

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

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
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

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

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

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

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

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

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

Question
s
Correct Answer
In 1936

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

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

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

Question
ECB stands for :-
Correct Answer
External Commercial Borrowings

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

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

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

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

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

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

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

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

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

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

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

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
ROC


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

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


True/False
Question A probationer is an employee and as such is not entitled to business.

True/False
Question Charge includes Mortgage.
Correct Answer True

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


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

Question What is computed by the competent authority at concessional rates?
Correct Answer Cost of living allowance and cash value
True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.

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


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


True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True

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

Match The Following

Audit Report- Opinion on the examination of
books of accounts

Auditor -A person who conducts the audits
Qualified for audit -Eligible to conduct the audit
Cost auditor- A cost accountant, who is suppose
to conduct cost audit of the
company.

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

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

Question 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

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

True/False
Question An employee employed through contractors on building operations is entitled to
bonus.

True/False
Correct Answer True
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards

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 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

Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts


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

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

True/False

Select The Blank
Correct Answer NCD

Correct Answer Private limited company , Unlimited company , Charitable association

Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty

Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results

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

True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True

True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Select The Blank

Select The Blank
shall be ________.
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders

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

Match The Following
Capital Account -Guarantee by a person resident
Living Expenses -Current Account
Deposits -Capital Account
The Adjudicating -Authority Power of Classification

Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control

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

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

Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company

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

Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years

Correct Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice

True/False
Question A probationer is an employee and as such is not entitled to business.

True/False
Question Charge includes Mortgage.
Correct Answer True

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


Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Question What is computed by the competent authority at concessional rates?

True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.

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


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


True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True

Match The Following
Audit Report -Opinion on the examination of
books of accounts

Auditor- A person who conducts the audits
Qualified for audit- Eligible to conduct the audit
Cost auditor- A cost accountant, who is suppose
to conduct cost audit of the
company.

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

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

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

True/False
Question An employee employed through contractors on building operations is entitled to
bonus.

True/False
Correct Answer True

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

Question Following are the Forms to be submitted to ROC for incorporation of company

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

Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts


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

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

True/False

Select The Blank
Correct Answer NCD

Correct Answer Private limited company , Unlimited company , Charitable association

Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty

Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results

Correct Answer SEBI

True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True

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

Select The Blank

Select The Blank
shall be ________.

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

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

Match The Following
Capital Account- Guarantee by a person resident

Living Expenses- Current Account

Deposits- Capital Account

The Adjudicating Authority -Power of Classification

Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control

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

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

Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company

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

Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years

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 Copies of annual accounts are to be filed within ________ days
from AGM with ROC.

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

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


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

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

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

persons

Select The Blank
Question The recommendations of audit committee relating to financial

Select The Blank
Question The minimum wages to the obligations created by the
convention no 26 of ________.

Correct Answer On repatriation , Non-repatriation , In Rupees

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


Question What is the minimum salary under which the persons are
covered in this act?


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

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

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

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

Correct Answer 1948

True/False
Question Foreign technical collaborations are permitted.

True/False

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


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


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

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

Select The Blank

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

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

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

Correct Answer Remuneration under any award , Settlement between the parties
or order of court , Overtime

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

Correct Answer Held by non resident shareholder , As per acquisition , In the
Form of FC-GPR

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

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

Question Board may by resolution passed at the meeting delegate the
powers to :-

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

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

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

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 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.

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
Capital Account- Guarantee by a person
resident

Living Expenses- Current Account
Deposits- Capital Account

The Adjudicating Authority- Power of Classification Guarantee by a person

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

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

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 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

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

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
government.

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

Correct Answer Remuneration under any award , Settlement between the parties
or order of court , Overtime

Select The Blank

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

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

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

True/False

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 SEBI

True/False

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

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

Match The Following

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

Question Following are the Forms to be submitted to ROC for
incorporation of company :-

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

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

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

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.

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

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

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

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

Correct Answer In Rupees , On repatriation , Non-repatriation


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.

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

Match The Following
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


Question What is computed by the competent authority at concessional
rates?

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

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.

Question Minimum gap required between date of dispatch of notice and
date of AGM is :-

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.

association

Correct Answer In Rupees , On repatriation , Non-repatriation

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


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

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

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.

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

Question Board may by resolution passed at the meeting delegate the
powers to :-


Match The Following

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


Participatory

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

Legal Aspects of Finance

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Monday, 3 February 2014

Legal Aspects of Finance - Set 1

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