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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Legal Aspects of Finance_1)

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

Multiple Choice Multiple 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 , 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

Multiple Choice Single Answer

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.
Correct Answer False

Multiple Choice Multiple Answer

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
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True/False
Question In case of Postal Ballot, result is announced through post.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer

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

Select The Blank

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

Multiple Choice Single Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Single Answer

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
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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 6 months

True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

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
Your Answer 30 days

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Multiple Answer

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

Multiple Choice Single Answer

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

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Multiple Choice Single Answer
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

Multiple Choice Single Answer

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

Multiple Choice Single Answer

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.
Correct Answer False
Your Answer True

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

Multiple Choice Single Answer

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

Multiple Choice Single Answer

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

Multiple Choice Single Answer

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

Multiple Choice Multiple Answer

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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