Pgdba 4th Sem Legal Aspects of Finance - Combined

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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 Amount adjudged is not due to penalty , For which any
application claim has already been presented , Direction of claim already given'
Your Answer For which any application claim has already been presented ,
Direction of claim already given' , Amount adjudged is not due to penalty
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 False
Select The Blank

Question 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
Your Answer 15 days
Multiple Choice Single Answer

Question In case of cost audit, the report of cost auditor has to be submitted to
central government, within :-
Correct Answer 120 Days
Your Answer 45 Days

Question During the course of audit, auditor is supposed to check :-
Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets
register
Your Answer Transaction Vouchers , Fixed assets register , Register of creditors
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
Your Answer True

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

Question Every ________ Company has to hold Statutory Meeting of the
members.
Correct Answer Public
Your Answer Limited
True/False
Question The independent director is a supplier of a service provider of the
company.
Your Answer False

Question SIA/FIPB approval is necessary in :-
Correct Answer 13 specified activities , Sector limits sought exceeded , Small
scale sector items
Your Answer 13 specified activities , Sector limits sought exceeded , Small scale
sector items
True/False
Question Only individuals can be appointed as directors of the company.
Correct Answer True
Your Answer True
True/False
Question In case of Postal Ballot, result is announced through post.
Your Answer True

Question Briefly describe the scheme of the bonus act :-
Correct Answer To impose statutory liability upon every employer to pay bonus
to employees , To define principle of payment of bonus as per the prescribed
formula , To provide payment for minimum and maximum bonus and link the
scheme for set off and set on
Your Answer To impose statutory liability upon every employer to pay bonus to
employees , To define principle of payment of bonus as per the prescribed formula ,
To provide payment for minimum and maximum bonus and link the scheme for set
off and set on
Select The Blank

Question Articles of Association are rules for ________.
Correct Answer Internal management
Your Answer Internal management

Question The Balance Sheet should be in the form set out in Part I of :-
Correct Answer Schedule VI
Your Answer Schedule VI
Select The Blank
Question ________ of the company has absolute discretion in regard to inclusion
or non inclusion of any matter in the minutes.
Correct Answer Chairman
Your Answer Share-holders who attended the meeting

Question Debentures can be :-
Correct Answer Redeemable , Convertible , Party convertible and redeemable
Your Answer Party convertible and redeemable , Redeemable , Convertible
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
Your Answer 1979
Match The Following

Question Correct Answer Your Answer
Indian company borrowings Redemption more than 3 years Redemption more than
3 years
Borrowing by NRE Loan less than 3 years Regulated ROI
Borrowings in Rupees Regulated ROI Loan less than 3 years
NCD issue Public issue Public issue

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

Question The notice of the meeting be sent to all the directors at their :-
Correct Answer Usual residential address
Your Answer Usual postal address
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
Your Answer Audit committee
Select The Blank

Question First AGM should be held within ________ from closure of financial
year.
Correct Answer 9 months
Your Answer 6 months
True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True

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 :-
Your Answer 30 days

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

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
Your Answer Ensure payment of wages to the employed , Prevent unauthorised
deductions , Prevent arbitrary fines

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 , Variation in
rights attached to class of shares

Question In calculating the limit of all the companies which companies are
excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making
companies
Your Answer Foreign companies , Non Profit making companies , Public limited
companies
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation , Non-repatriation
True/False
Question There can be an Ordinary Resolution for Special business.
Correct Answer True
Your Answer True
True/False
Question Meeting of the board of Directors shall be held at least 4 times in a
year.
Correct Answer True
Your Answer True
Select The Blank

Question Payment of ________ requires registration from RBI.
Correct Answer Royalty
Your Answer Royalty

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

Question The representations received for revision or fixation or reverse the rate
of minimum wages by notification in the official gazette are considered by :-
Correct Answer Advisory board
Your Answer Advisory board

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

Question After incorporation of the company, the first auditor is generally
appointed within :-
Correct Answer One Month
Your Answer One Month
True/False
Question Foreign technical collaborations are permitted.
Your Answer True
True/False
Question Company may have alternate director.
Correct Answer True
Your Answer False

Question The minimum wages act falls under which scope ?
Correct Answer Scope of entry 27 I list III of schedule IV of constitution of India
Your Answer Schedule 9 of section 23

Question Declaration of Compliance with requirements of the Companies Act
Correct Answer Form 1
Your Answer Form 32

Question Company can increase its maximum number of directors, for which
application is required to be made in :-
Correct Answer Form no 24
Your Answer Form no 24

Question Board may by resolution passed at the meeting delegate the powers to
:-
Correct Answer Committee of directors , Managing director , Manager
Your Answer Committee of directors , Managing director , Manager
Select The Blank

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

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

Question To avoid conflicts of interest, ________ committee would determine the
remuneration packages of the executive directors.
Correct Answer Remuneration
Your Answer Remuneration
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Question
For which activity FDI is not prohibited?
Correct Answer
Insurance
Your Answer
Insurance
Question
Remuneration to the director may be paid :-
Correct Answer
Monthly , Quarterly , Annually
Your Answer
Quarterly , Annually , Monthly
Question
Payment of wages act came into existence :-
Correct Answer
To ensure regular and timely payment of wages to employed persons
Your Answer
Question
To safeguard the interest of the company or its shareholders or the public
interest, the central government, may appoint such number of person as
directors to hold office for a period not exceeding :-
Correct Answer
3 years
Your Answer
3 years
Question
Sole selling agent may be :-
Correct Answer
An Individual , A firm , A Body corporate
Your Answer
Question
When was the factories act passed?
Correct Answer
In 1948
Your 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
Your Answer
True/False
Question
Bonus is an ex gratia payment.
Correct Answer
False
Your Answer
False
Question
Compliance Report is signed by :-
Correct Answer
Company Secretary in practice
Your Answer
Question
The responsibility of placing the annual accounts before the AGM is on
Correct Answer
Board of Directors
Your 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
Your 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/-
Your Answer
Minimum Share value Rs.5000/- , If fails to obtain then he has to resign from the
post
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
Your Answer
True
True/False
Question
An independent Director is not an executive director of a Company.
Correct Answer
False
Your Answer
True
True/False
Question
Owned foreign exchange is not permitted.
Correct Answer
False
Your Answer
True
Select The Blank
Question
Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer
30 days
Your Answer
30 days
True/False
Question
A non executive director is not a substantial shareholder of the company.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Bifurcation
Voted for/ against
Chairman
Ordinary resolution
Simple majority
Simple majority
Requisition of members
Not less than 5 % voting power
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
Your 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
Your 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
Your Answer
Resolution
Question
Which committees are considered for calculating the limit of the companies
Correct Answer
Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Your 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
Your Answer
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
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
Your Answer
Question
A company which restricts the right to transfer its shares is :-
Correct Answer
Private Ltd. Company
Your Answer
Private Ltd. Company
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
Form 23AA
Accounting Standards
National Advisory Committee
Question
Preference shares can be :-
Correct Answer
Cumulative redeemable , Non- cumulative redeemable , Participatory
Your Answer
Cumulative redeemable , Non- cumulative redeemable
True/False
Question
Only individuals can be appointed as directors of the company.
Correct Answer
True
Your Answer
True
Question
Director can be appointed without counting the number in :-
Correct Answer
Private limited company , Unlimited company , Charitable association
Your Answer
Charitable association
Question
Who is not entitled to bonus?
Correct Answer
An apprentice , Employee employed through contractors
Your Answer
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
Your Answer
1959
Question
To whom does the payment of wages act apply to ?
Correct Answer
Persons employed in any factory
Your Answer
Select The Blank
Question
Under the industrial disputes act 1947________is an appropriate government.
Correct Answer
Central government
Your Answer
Central government
Question
When was the minimum wages act passed ?
Correct Answer
1948
Your Answer
1948
True/False
Question
Retiring director may be eligible for reappointment.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose of the
act?
Correct Answer
Arvind mills ltd case
Your Answer
True/False
Question
After completion of Ordinary business other business is transacted at Extra
ordinary General Meeting.
Correct Answer
False
Your Answer
False
Select The Blank
Question
________shall certify that they have reviewed the balance sheet and profit and
loss account.
Correct Answer
CEO
Your Answer
CEO
Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer
Select The Blank
Question
Any payment in respect on ________ can be deducted from the wages of an
employed person.
Correct Answer
Fidelity guarantee bond
Your Answer
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
Your 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
Your 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
Your Answer
money
Question
Explanatory Statement should be annexed to Notice for :-
Correct Answer
Special business
Your 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
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
Conditions on borrowings by PIO are :-
Correct Answer
Non-repatriation basis , Loan by inward remittance , Account by lender in India
Your Answer
Current Account , Non-repatriation basis , Loan by inward remittance
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Select The Blank
Question
Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer
30 days
Your Answer
90 days
True/False
Question
Sectoral cap on investment by person resident outside India on Mass rapid
Transport is 50%.
Correct Answer
False
Your 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
Your Answer
5
Question
A director has to vacate his office, if he is adjudged as :-
Correct Answer
Insolvent
Your Answer
Insolvent
Question
Define an employee under section 2 (13) :-
Correct Answer
Person employed with salary exceeding Rs 3500
Your Answer
True/False
Question
Authorized dealer is required to avail license under the exim policy in force.
Correct Answer
True
Your Answer
True
Question
The earlier "Fast Track" investments route has been replaced by?
Correct Answer
Automatic
Your 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
Your Answer
More
Question
Correct Answer
Your Answer
To pay wages after a years time
Select The Blank
Question
The recommendations of audit committee relating to financial management shall
be ________.
Correct Answer
Binding
Your Answer
Binding
Select The Blank
Question
The minimum wages to the obligations created by the convention no 26 of
________.
Correct Answer
Your Answer
Question
Borrowings for Indian companies are for :-
Correct Answer
On repatriation , Non-repatriation , In Rupees
Your Answer
In Rupees , On repatriation , On Payments made
Question
What do you mean by wages?
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of money
Your Answer
Question
Correct Answer
Your Answer
Question
What is the minimum salary under which the persons are covered in this act?
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Question
Define an employed person under section 2 of the act.
Correct Answer
Includes legal representative of a deceased employed person
Your Answer
Question
Following are the points related to Qualification share that every director has to
take :-
Correct Answer
Minimum Share value Rs.5000/- , Within two months of date of appointment , If
fails to obtain then he has to resign from the post
Your Answer
Minimum Share value Rs.5000/- , Within two months of date of appointment , If
fails to obtain then he has to resign from the post
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Ordinary Resolution
Reduction of capital
Special Resolution
Appointment of Managing Director

Ordinary Resolution
Board of Directors
Special Resolution
True/False
Question
A General Meeting may also be called by giving shorter notice than 21 days.
Correct Answer
True
Your Answer
True
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
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
Your Answer
1000
Question
The Balance Sheet should be in the form set out in Part I of :-
Correct Answer
Schedule VI
Your 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
Your Answer
True
Question
When was the minimum wages act passed ?
Correct Answer
1948
Your Answer
1948
True/False
Question
Foreign technical collaborations are permitted.
Correct Answer
False
Your Answer
True
True/False
Question
Wages includes any travelling allowance for travel concession.
Correct Answer
False
Your Answer
False
Question
Companies Act presently implemented and adhered by companies is :-
Correct Answer
Companies Act, 1956
Your Answer
Companies Act, 1956
Question
Correct Answer
Your Answer
Select The Blank
Question
To avoid conflicts of interest, ________ committee would determine the
remuneration packages of the executive directors.
Correct Answer
Remuneration
Your Answer
Board members
Question
A director of a company can be removed by :-
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
The loan to any body corporate shall be made at the rate of interest not less than
that prevailing bank rate as may be prescribed by Reserve Bank of India.
Correct Answer
True
Your Answer
True
Question
A director can hold place of profit by :-
Correct Answer
Special resolution
Your Answer
Special resolution
Select The Blank
Question
Articles of Association are rules for ________.
Correct Answer
Internal management
Your Answer
Internal management
Question
The board of directors shall exercise these powers only at board meetings :-
Correct Answer
money
Your Answer
money
Question
The period for realization for export of goods from the date of shipment is at :-
Correct Answer
Six month
Your Answer
Six month
Question
Accounting Standards are issued by :-
Correct Answer
Institute of Chartered Accountants
Your Answer
Question
Describe in brief what does the term wages include?
Correct Answer
Remuneration under any award , Settlement between the parties or order of
court , Overtime
Your Answer
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
Your Answer
Select The Blank
Question
________means all remuneration expressed in terms of money.
Correct Answer
Wages
Your 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
Your Answer
Held by non resident shareholder , As per acquisition , In the Form of FC-GPR ,
Willingness of company
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
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
Your Answer
True/False
Question
Meeting of the board of Directors shall be held at least 4 times in a year.
Correct Answer
True
Your Answer
True
Question
Who has not prescribed particular set of documentation for current account
remittances?
Correct Answer
RBI , Central Govt.
Your Answer
RBI , Central Govt.
True/False
Question
the organisation.
Correct Answer
False
Your Answer
False
Question
Which person is responsible for he payment of wages act ?
Correct Answer
Managers
Your Answer
Managers
Select The Blank
Question
Multimodal ________ making remittance to their agents abroad.
Correct Answer
Transport operators
Your Answer
Transport operators
Score Card
Registration
200404214
Number:
Name: Manpreet Malhotra
Subject: Legal Aspect Of Finance
Assignment Statu
18/03/2006
s As On:
Result for this Assignment
Assignment Date
17/03/2006
Number of Correct Questions

37
Number of Skipped Questions

10
Number of Wrong Questions

10
Total Questions attempted

57
Total Marks obtained

78 Out of 100.
Result
Pass
Click here to view the list of attempted question and answers.
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True/False
Question
Company can not issue shares with differential voting/ dividend
rights.
Correct Answer
False
Your Answer
False
Select The Blank
Question
________ of the company has a right to take inspection of the books
of account.
Correct Answer
Any Director
Your Answer
Any Director
Select The Blank
Question
________ is one of the critical matter which should be decided by
the postal ballot.
Correct Answer
Corporate restructuring
Your Answer
Appointment of directors
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
Your Answer
True
True/False
Question
Every company shall have a qualified and independent audit
committee.
Correct Answer
True
Your Answer
True

Question
Every member of a company limited by shares and holding any
equity share capital therein shall have :-
Correct Answer
Right to vote
Your Answer
Right to vote
Question
What does salary or wage include?
Correct Answer
Dearness allowance
Your Answer
Overtime
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
Your Answer
He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
True/False
Question
Every company has to inform ROC about the place where it keeps
books of account.
Correct Answer
False
Your Answer
False
True/False
Question
Company may have alternate director.
Correct Answer
True
Your Answer
True
Select The Blank
Question
To avoid conflicts of interest, ________ committee would determine
the remuneration packages of the executive directors.
Correct Answer
Remuneration
Your Answer
Remuneration
Question
Define an employee under section 2 (13) :-
Correct Answer
Your Answer
Question
Current Account transactions are permitted if payment is made out
of :-
Correct Answer
EEFC Account , RFC Account
Your Answer
Current Account , EEFC Account , Cash Credit Account
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
Your Answer
All remuneration other than in respect of overtime work of the work
True/False
Question
A director is not required to take qualification share.
Correct Answer
False
Your Answer
False
Question
If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer
Vacated
Your Answer
Vacated
Select The Blank
Question
The form should be filled within ________ days from the date of
execution of document.
Correct Answer
30 days
Your Answer
30 days
Select The Blank
Question
Sweeping powers such as search and arrest contained in Foreign
Exchange ________ Act.
Correct Answer
Control
Your Answer
Control
Question
The Name availability issued by ROC is valid for :-
Correct Answer
Six months
Your Answer
No limit
Match The Following
Question
Correct Answer
Your Answer
Cost auditor
A cost accountant, who is suppose to conduct cost audit of the
company.
A cost accountant, who is suppose to conduct cost audit of the
company.
Audit Report
Opinion on the examination of books of accounts
Opinion on the examination of books of accounts
Auditor
A person who conducts the audits
A person who conducts the audits
Qualified for audit

Eligible to conduct the audit
Eligible to conduct the audit
Match The Following
Question
Correct Answer
Your Answer
Dividend balancing
Over 7 years from production
Over 7 years from production
Investment cap 26%

Insurance
Insurance
Investment cap 100%

Housing & real estate
Housing & real estate
Foreign companies
Project office
Project office
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
Your 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
Question
The Board is required to give explanation for the adverse remark
given by :-
Correct Answer
Auditor
Your Answer
Auditor
Select The Blank
Question
For private company, number of members do not include ________.
Correct Answer
Employees of company
Your Answer
Employees of company
Question
Accounting Standards are issued by :-
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
WOS are allowed to :-
Correct Answer
Pay royalty , Offshore payment , By automatic route
Your Answer
Pay royalty , Offshore payment , By automatic route
Question
Directors' Responsibility Statement refers to :-
Correct Answer
Going concern , Accounting policies , Accounting standards
Your Answer
Going concern , Accounting policies , Accounting standards
Select The Blank

Question
The management should clearly disclose ________ in auditors
report
Correct Answer
Contingent liabilities
Your Answer
Contingent liabilities
Question
Explanatory Statement should be annexed to Notice for :-
Correct Answer
Special business
Your Answer
Special business
Question
Audit committee shall consist of not less than :-
Correct Answer
Three directors
Your Answer
One director
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
Your Answer
True
Question
Borrowings for Indian companies are for :-
Correct Answer
In Rupees , On repatriation , Non-repatriation
Your Answer
In Rupees , On repatriation , Non-repatriation
Question
The responsibility of placing the annual accounts before the AGM is
on
Correct Answer
Board of Directors
Your Answer
Board of Directors
Question
Authentication of Annual Accounts means :-
Correct Answer
Correctness of the accounts
Your Answer
Correctness of the accounts
Question
Conditions on borrowings by PIO are :-
Correct Answer
Non-repatriation basis , Loan by inward remittance , Account by
lender in India
Your Answer
Non-repatriation basis , Loan by inward remittance , Account by
lender in India
Question
The Balance Sheet should be in the form set out in Part I of :-
Correct Answer
Schedule VI
Your Answer
Schedule VI
Question
Which committees are considered for calculating the limit of the
companies
Correct Answer
Audit committees , Remuneration Committee , Shareholders
Grievance Committee
Your Answer
Audit committees , Remuneration Committee , Shareholders
Grievance Committee
Question
Single director can sign the annual accounts if :-
Correct Answer
Only one director in India for the time being
Your Answer
Only one director in India for the time being
Question
Object Clauses are divided into :-
Correct Answer
Main Object , Object incidental or ancillary to Main , Other Objects
Your Answer
Main Object , Object incidental or ancillary to Main , Other Objects
Question
Board of directors have to take consent of general meeting for :-
Correct Answer
Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Contribute to charitable funds
exceeding Rs 50000/- or 5% of average net profits
Your Answer
Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Filling of vacancies
True/False
Question
The independent director is a supplier of a service provider of the
company.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Liability clause can be found in ________.
Correct Answer
Memorandum of Association
Your Answer
Articles of Association
Question
In each board meeting director is paid by remuneration, which is
known as :-
Correct Answer
Sitting fees
Your Answer
Meeting fees

Question
Maximum fine which can be levied for default in placing accounts
before AGM is :-
Correct Answer
Rs. 50,000
Your Answer
Rs. One lac
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
Your 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
Compliance Report is signed by :-
Correct Answer
Your Answer
True/False
Question
Meeting of the board of Directors shall be held at least 4 times in a year.
Correct Answer
True
Your Answer
True
Question
Company can take loan from :-
Correct Answer
Banks , Financial Institutions , Debenture Holders
Your Answer
Financial Institutions , Debenture Holders , Banks
Question
Correct Answer
Managers
Your Answer
Managers
Select The Blank
Question
It is advisable to close the financial year on ________.
Correct Answer
31st March
Your Answer
31st March
Question
Deductions are authorized under which section?
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Question
Correct Answer
In 1948
Your Answer
In 1948
Select The Blank
Question
The minimum wages act came in force in the year________.
Correct Answer
1948
Your Answer
1948
Question
Correct Answer
court , Overtime
Your Answer
court , Overtime
True/False
Question
Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer
False
Your Answer
False
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
There can be an Ordinary Resolution for Special business.
Correct Answer
True
Your Answer
True
Question
The earlier "Fast Track" investments route has been replaced by?
Correct Answer
Automatic
Your Answer
Automatic
Question
The notice of the meeting be sent to all the directors at their :-
Correct Answer
Usual residential address
Your Answer
Usual residential address
Question
A director has to vacate his office, if he is adjudged as :-
Correct Answer
Insolvent
Your Answer
Insolvent
Question
Correct Answer
Your Answer
Question
What does an industrial or other establishment means as per section 2II?
Correct Answer
Tramway service or motor transport service engaged carrying passengers of hire
or reward , Dock wharf jetty , Plantation
Your Answer
True/False
Question
A non executive director is not a substantial shareholder of the company.
Correct Answer
True
Your Answer
False
Question
What is the role of the audit committee?
Correct Answer
Reviewing the company's financial and risk management policies , Review the
annual financial statements , Recommending and appointment of external
auditors
Your Answer
Review the annual financial statements , Recommending and appointment of
external auditors , Reviewing the company's financial and risk management
policies
Question
SIA/FIPB approval is necessary in :-
Correct Answer
13 specified activities , Sector limits sought exceeded , Small scale sector items
Your Answer
13 specified activities , Sector limits sought exceeded , Small scale sector items
Question
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Question
Following are the Forms to be submitted to ROC for incorporation of company :-
Correct Answer
Form 32 , Form 29 , Form 1
Your Answer
Form 32 , Form 29 , Form 1
True/False
Question
Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer
False
Your Answer
False
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948

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
3 years
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
In which case did the Bombay high court observe the general purpose of the
act?
Correct Answer
Your Answer
True/False
Question
Government can authorise for supply of essential commodities at concessional
rates and pay wages in kind.
Correct Answer
True
Your Answer
False
Match The Following
Question
Correct Answer
Your Answer
Qualification share
Minimum number of shares that every director has to take
Minimum number of shares that every director has to take
Director
Employee of the company
Promoter of company
Vacancy
Created due to resignation of director
Created due to resignation of director
Rotation
Specific time interval
Specific time interval
Question
What is computed by the competent authority at concessional rates?
Correct Answer
Cost of living allowance and cash value
Your Answer
Cost of living allowance and cash value
True/False
Question
Retiring director may be eligible for reappointment.
Correct Answer
True
Your Answer
True
Question
Board may by resolution passed at the meeting delegate the powers to :-
Correct Answer
Your Answer
Select The Blank
Question
Under section ________ period in respect of which wages would be paid would
be determined.
Correct Answer
3
Your Answer
3
Question
Preference shares can be :-
Correct Answer
Your Answer
Question
Who is entitled to bonus?
Correct Answer
Temporary workmen , Part time employee , Retrenched employee
Your Answer
Question
Books of account with respect to following are required to be kept :-
Correct Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities
Your Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities
True/False
Question
Wages include any house accommodation, supply of light medical attendance
etc.
Correct Answer
False
Your Answer
False

Question
A person can not be appointed as director of the company if :-
Correct Answer
Your Answer
Select The Blank
Question
The ________ issue shall be by way of public issue.
Correct Answer
NCD
Your Answer
NCD
Question
Correct Answer
Your Answer
Question
During the course of audit, auditor is supposed to check :-
Correct Answer
Transaction Vouchers , Cash and Bank balances , Fixed assets register
Your Answer
Transaction Vouchers , Cash and Bank balances , Fixed assets register
Question
In which of the companies the bonus act is applicable?
Correct Answer
More than 20 persons employed
Your Answer
Select The Blank
Question
For making alterations before ROC, ________ is required.
Correct Answer
Power of Attorney
Your Answer
Power of Attorney
Select The Blank
Question
________means all remuneration expressed in terms of money.
Correct Answer
Wages
Your Answer
Wages
True/False
Question
No person can be appointed as an auditor of the company who is in full time
employment.
Correct Answer
True
Your Answer
True
Question
Number of shareholders entitled to requisition a meeting shall be carrying
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
Ordinary Resolution
True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
False
Select The Blank
Question
The uses and applications of the funds raised shall be disclosed to the audit
committee on a ________basis.
Correct Answer
Quarterly
Your Answer
Quarterly
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

Books of Account
Form 23AA
Form 23AA
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
Your Answer
Audit report
Question
Which companies have to comply with the provisions of Clause 49 of listing
agreement ?
Correct Answer
Listed Companies
Your Answer
Listed Companies
True/False
Question
Former director can take inspection of books of account for the years when he
was director.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
True/False
Question
Statutory Meeting must be held on a working day.
Correct Answer
False
Your Answer
True
Select The Blank
Question
be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Question
Current Account transactions include :-
Correct Answer
Payments for foreign Trade , Payments for Interest , Foreign Travel Expenses
Your Answer
Payments for foreign Trade , Payments for Interest , Payments as Loans
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Statutory Report pertains to :-
Correct Answer
Funds raised by the company , Utilisation of funds , Investments made by the
company
Your Answer
Expenses incurred for Statutory Meeting , Funds raised by the company ,
Utilisation of funds
Question
Correct Answer
Insurance
Your Answer
Insurance
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
Your Answer
True/False
Question
Any gratuity payable on termination of employment is included in wages.
Correct Answer
False
Your Answer
False
True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The Forms 8 &13 should be filed in ________ to ragistrar of companies.
Correct Answer
Triplicate
Your Answer
Duplicate
True/False
Question
A company can be incorporated with the name using words Hindustan, India.
Correct Answer
True
Your Answer
False
True/False
Question
It is not obligatory for the board of directors to lay down the code of conduct for
all the board members.
Correct Answer
False
Your Answer
False
True/False
Question
Correct Answer
True
Your Answer
True
Question
The Document spelling out internal management of the Company is :-
Correct Answer
Your Answer
Question
Who are governed by the payment of wages act?
Correct Answer
Employed persons , Salary less than 1600 per month
Your Answer
True/False
Question
FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer
True
Your Answer
True
Question
For registering certain resolutions, following documents are submitted :-
Correct Answer
Form 23 , Certified copy of resolution , Copy of explanatory statement
Your Answer
Form 23 , Certified copy of resolution , Copy of explanatory statement
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
Your Answer
Question
Maturity period for USD 5 million scheme is :-
Correct Answer
Three years
Your Answer
Ten years
Question
A person can not be appointed as managing or whole time director in more than
:-
Correct Answer
Two companies
Your Answer
Two companies
Question
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
Your Answer
30 Days
Question
Who fixes the compensation to be paid to the non executive directors?
Correct Answer
Board of Directors
Your Answer
Executive Directors
Question
Remittance completely prohibited on :-
Correct Answer
Dividend balancing , Telephone expanses , Interest on funds
Your Answer
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
Your Answer
Resolution
True/False
Question
Wages includes the value of any house accommodation or supply of light and
water.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Any payment in respect on ________ can be deducted from the wages of an
employed person.
Correct Answer
Your Answer
Question
A director can hold place of profit by :-
Correct Answer
Special resolution
Your Answer
Special resolution
Select The Blank
Question
Board has power to receive of notice of ________.
Correct Answer
Disclosure of interest
Your Answer
Disclosure of interest
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
Your Answer
Pay less than minimum wages , Pay less than fixed wages , Contravenes any
rule or order
True/False
Question
Correct Answer
True
Your Answer
True
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
Your Answer
Audit committee
Question
Who is not entitled to bonus?
Correct Answer
Your Answer
Question
What is the optimum combination of Board of Directors?
Correct Answer
Managing Directors and Secretary
Your Answer
Select The Blank
Question
As per section ________ it is obligatory on every person responsible for
payment.
Correct Answer
4
Your Answer
4
Question
FDI prohibited activities are :-
Correct Answer
Retail trading , Gambling & betting , Housing & real estate
Your Answer
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
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Select The Blank
Question
If an employer derives profit in any of the first ________ years he has to pay
bonus for that year.
Correct Answer
5
Your Answer
5
Question
Correct Answer
Your Answer
Unlimited company , Charitable association
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.
Question
Correct Answer
Your 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
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
be determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Correct Answer
Insurance
Your 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
Your Answer
Alteration in Object Clause , Buy-back of own shares
Select The Blank
Question
It is the primary ________ of the company to file the documets of creation of
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank
Question
Correct Answer
31st March
Your Answer
31st March
Question
Correct Answer
Vacated
Your Answer
Vacated
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Doing legal things
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
Your Answer
3
True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
True
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
water.
Correct Answer
False
Your Answer
False
True/False
Question
the organisation.
Correct Answer
False
Your Answer
True
Question
Public limited company's directors have following conditions :-
Correct Answer
Minimum number is three , Should be individuals , Have sound mind
Your Answer
True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Executive and non executive Directors
Question
If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

ROC
Books of Account
Form 23AA
Registered Office
Form 23AA
True/False
Question
Correct Answer
True
Your Answer
True
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.
Question
Correct Answer
policies
Your Answer
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
Your Answer
Select The Blank
Question
payment.
Correct Answer
4
Your Answer
2
True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Your Answer
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
Question
As per section 3 who fixes the minimum rate of wages to be paid to the
employees ?
Correct Answer
Appropriate government
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True
Your Answer
True
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for import of
goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares with :-
Correct Answer
Differential voting rights
Your Answer
Question
Correct Answer
Your 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
Your Answer
Amount by way of depreciation , Employment rebate or investment allowance ,
Direct tax
Question
Correct Answer
Your Answer
Question
What does an industrial or other establishment means as per section 2II?
Correct Answer
Your Answer
True/False
Question
A piece rated worker is entitled to bonus.
Correct Answer
True
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
What do you mean by establishment on private sector?
Correct Answer
Any establishment other than public sector
Your Answer
Question
Person permanently resident in India can return foreign exchange by :-
Correct Answer
From AD , Travelling abroad , As a gift
Your Answer
True/False
Question
Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
External Commercial Borrowings
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Payment of ________ requires registration from RBI.
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or order of court
, Overtime
Your Answer
Remuneration under any award , Overtime , Travelling allowance
Question
Correct Answer
Your Answer
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
Your Answer
True
Question
FEMA Norms are compatible with :-
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948
Select The Blank
Question
The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your 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
Your Answer
Question
Correct Answer
Less than Rs 1600
Your 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
Your Answer
Any Director
True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False
Your Answer
False
Select The Blank
Question
be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than 1200 per
month
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed
Your Answer
Day on which books of accounts are open
True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial year.
Correct Answer
9 months
Your Answer
18 months
Question
Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer
Your Answer
Select The Blank

Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Resolution authorising alteration
Question
Correct Answer
Your Answer
True/False
Question
Company can not issue shares with differential voting/ dividend rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal document.
Correct Answer
False
Your Answer
True
Question
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
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
Your Answer
False
Legal aspects of finance –saroj -1
Question When was the minimum wages act passed ?
Correct Answer 1948
Your 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
Your Answer 3

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

Question Who are governed by the payment of wages act?
Correct Answer Employed persons , Salary less than 1600 per month
Your Answer Employed persons , Salary less than 1600 per month , Salary less than
1200 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
Your Answer If failure to work is caused by unwillingness to work , Not by omission
of the employer to provide him with work , He works for more than full working hours

Question What do you mean by wages?
Correct Answer Remuneration by way of salaries , Allowances , Expressed in terms
of money
Your 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
Your 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
Your 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 :-
Your Answer 45 days
Select The Blank

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

Question Under section ________ period in respect of which wages would be paid
would be determined.
Correct Answer 3
Your Answer 3
True/False
Question A piece rated worker is entitled to bonus.
Correct Answer True
Your Answer False

Question What is the minimum salary under which the persons are covered in this
act?
Correct Answer Less than Rs 1600
Your Answer Less than Rs 1600
Select The Blank

Question ________ includes legal representative of deceased employer.
Correct Answer Employer
Your Answer Doctor
Match The Following

dismissed employee for bonus Gannon India vs. niranjan das Gannon India vs. niranjan
das
part time employee entitled to bonus automobile karmachari sang vs. industrial tribunal
1970 automobile karmachari sang vs. industrial tribunal 1970
retrenched employee entitled for bonus' east Asiatic company vs. industrial tribunal
1961 east Asiatic company vs. industrial tribunal 1961
probationer for bonus' bank of madura vs. employees union 1970 bank of madura vs.
employees union 1970
True/False
Question Only individuals can be appointed as directors of the company.
Correct Answer True
Your Answer False

Question FEMA Norms are compatible with :-
Correct Answer FERA
Your Answer FERA

Question WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your 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
Your 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
Your Answer True
True/False
Question Financial year and calendar year are one and the same thing.
Your Answer False

Question How would you define salary or wage?
Correct Answer All remuneration other than in respect of overtime work of the work
Your Answer All remuneration including overtime

Question In case of cost audit, the report of cost auditor has to be submitted to central
government, within :-
Correct Answer 120 Days
Your Answer 90 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
Your Answer Shares of the company bought & sold by the members , Money received
& expended , Sales & purchases of goods

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
Your Answer Name , address and date of appointment of receiver , date on which the
receiver ceased to act , Receivers Professional qualification

Question In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member
Your 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
Your 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
Your 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
Your Answer True
True/False
Question Senior managers are members of management, one level below the
executive director.
Correct Answer True
Your 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
Your Answer Pay more than fixed wages , Pay less than minimum wages , Pay less
than fixed wages
True/False
Question Board may appoint additional directors.
Correct Answer True
Your Answer True

Question Which report is received by the shareholders annually ?
Correct Answer Directors report
Your Answer Directors report
Select The Blank

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

Question Purchase of foreign securities by resident employee of Indian Software
Company, should not exceed ________.
Correct Answer US $ 50000
Your Answer US $ 50000
True/False
Question Former director can take inspection of books of account for the years when
he was director.
Your Answer False

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

Question Compliance Report is signed by :-
Correct Answer Company Secretary in practice
Your Answer Board of Directors
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
Your Answer Convicted
True/False
Question Any gratuity payable on termination of employment is included in wages.
Your Answer True

Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Solvent
Match The Following

Notice Circulation for day, time of meeting Circulation for day, time of meeting
Sole selling agent Have exclusive right to sale for company in specified area Have
exclusive right to sale for company in specified area
Audit committee Appointed for specific purpose related to audit Appointed for
assistance to board of directors
Quorum Minimum required persons for meeting Minimum required persons for
meeting
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
Your Answer False
Select The Blank

Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Your Answer 15 days

Question Debentures can be :-
Correct Answer Redeemable , Convertible , Party convertible and redeemable
Your 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
Your Answer He is authorised by the Board in this regard
Select The Blank

Question Copies of annual accounts are to be filed within ________ days from AGM
with ROC.
Your Answer 21 days
*************
Legal Aspects of Finance
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for
import of goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares
with :-
Correct Answer
Your Answer
Question
Correct Answer
Your 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
Your Answer
Amount by way of depreciation , Employment rebate or investment
allowance , Direct tax

Question
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of
money
Your 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
Your 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
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
What do you mean by establishment on private sector?
Correct Answer
Your Answer
Question
Person permanently resident in India can return foreign exchange by :-
Correct Answer
Your Answer
True/False
Question
Wages include any contribution paid by the employer to any pension
fund or provided fund.
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Payment of ________ requires registration from RBI.
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or
order of court , Overtime
Your Answer
Remuneration under any award , Overtime , Travelling allowance
Question
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
Your 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
Your Answer
True
Question
FEMA Norms are compatible with :-
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948

Select The Blank
Question
The definition of ECB in India is partly in alignment with ________
Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your 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
Your 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
Your 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
Your Answer
Any Director
True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False
Your Answer
False
Select The Blank
Question
The recommendations of audit committee relating to financial
management shall be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than
1200 per month
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed
Your Answer
Day on which books of accounts are open
True/False
Question
Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled
bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose
of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial
year.
Correct Answer
9 months
Your Answer
18 months
Question
Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer
Your Answer
Select The Blank
Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Resolution authorising alteration
Question
Correct Answer
Ensure payment of wages to the employed , Prevent unauthorised
Your Answer
Ensure payment of wages to the employed , Prevent unauthorised
True/False
Question
Company can not issue shares with differential voting/ dividend
rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal
document.
Correct Answer
False
Your Answer
True
Question
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
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
Your Answer
False
Question
Correct Answer
Your Answer
Unlimited company , Charitable association
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.
Question
Correct Answer
Your 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
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
be determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Correct Answer
Insurance
Your 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
Your Answer
Alteration in Object Clause , Buy-back of own shares
Select The Blank
Question
It is the primary ________ of the company to file the documets of creation of
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank

Question
Correct Answer
31st March
Your Answer
31st March
Question
Correct Answer
Vacated
Your Answer
Vacated
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Doing legal things
Insolvent
Moral turpitude
Call on share
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
Your Answer
3
True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
True

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
water.
Correct Answer
False
Your Answer
False
True/False
Question
the organisation.
Correct Answer
False
Your Answer
True
Question
Public limited company's directors have following conditions :-
Correct Answer
Your Answer
True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Executive and non executive Directors
Question
If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

ROC
Books of Account
Form 23AA
Registered Office
Form 23AA
True/False
Question
Correct Answer
True
Your Answer
True
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.
Question
Correct Answer
policies
Your Answer
policies
Question
What has the national labour omission described about passing of the act?
Correct Answer
Your Answer
Select The Blank
Question
payment.
Correct Answer
4
Your Answer
2
True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Your Answer
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
Question
As per section 3 who fixes the minimum rate of wages to be paid to the
employees ?
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True
Your Answer
True
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False

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NCD issue Public issue Public issue

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Multiple Choice Single Answer

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