LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Legal Aspects of Finance_8)

Multiple Choice Single Answer

Question In which of the companies the bonus act is applicable?
Correct Answer More than 20 persons employed
Your 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
Your Answer Letter of credit

Multiple Choice Single Answer

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

Multiple Choice Single Answer

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

Multiple Choice Single Answer

Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your 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
Your Answer Amount by way of depreciation , Employment rebate or investment allowance , Direct tax

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

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

Multiple Choice Single Answer

Question s
Correct Answer In 1936
Your Answer In 1936

Multiple Choice Single Answer

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

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

Multiple Choice Multiple Answer

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

Multiple Choice Single Answer

Question ECB stands for :-
Correct Answer External Commercial Borrowings
Your Answer External Commercial Borrowings

Multiple Choice Single Answer

Question Deductions are authorized under which section?
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

Multiple Choice Single Answer

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

Multiple Choice Multiple Answer

Question Describe in brief what does the term wages include?
Correct Answer Remuneration under any award , Settlement between the parties or order of court , Overtime
Your Answer Remuneration under any award , Overtime , Travelling allowance

Multiple Choice Multiple Answer

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

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

Multiple Choice Single Answer

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

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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
Your Answer FERA

Select The Blank

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

Multiple Choice Multiple Answer

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

Multiple Choice Single Answer

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

Select The Blank

Question ________ of the company has a right to take inspection of the books of account.
Correct Answer Any Director
True/False
Question The minimum wages act came in force on 15 march 1968
Correct Answer False

Select The Blank

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

Multiple Choice Multiple Answer

Question Who are governed by the payment of wages act?
Correct Answer Employed persons , Salary less than 1600 per month
Your Answer Employed persons , Salary less than 1600 per month , Salary less than 1200 per month

Multiple Choice Single Answer

Question What do you mean by accounting year?
Correct Answer Day on which books of accounts of the corporation are closed
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
True/False
Question A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer True

Multiple Choice Single Answer

Question In which case did the Bombay high court observe the general purpose of the act?
Correct Answer Arvind mills ltd case
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Select The Blank
Question First AGM should be held within ________ from closure of financial year.
Correct Answer 9 months
Your Answer 18 months
Multiple Choice Single Answer
Question Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer Articles of Association
Select The Blank
Question Private Company prohibits public to ________ for any shares.
Correct Answer Subscribe

Multiple Choice Single Answer

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

Match The Following

Question Correct Answer

Interim Dividend Board of Directors

Reduction of capital Special Resolution
Appointment of Managing Director Ordinary Resolution
Accounting Standards National Advisory Committee

Select The Blank

Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Resolution authorising alteration

Multiple Choice Multiple Answer

Question What is the main purpose of the payment of wages act 1936?
Correct Answer Ensure payment of wages to the employed , Prevent unauthorised deductions , Prevent
arbitrary fines

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

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

Multiple Choice Multiple Answer

Question What is the board procedure ?
Correct Answer Meeting to be held 4 times in a year , Should not be a gap of more than 4 months between 2
meetings , Minimum information should be made available

Multiple Choice Single Answer

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

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

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