Legal Aspect of Finance shared by Niharika

Legal Aspect Of Finance Notes(Shared by Niharika Bhagat)

1. The charges requiring registration with ROC are

• A charge on uncalled share capital
• A change for purpose of securing any issue of debentures
• A charge on any immovable property

2. The central government may exempt any class of companies from compliance with any of the requirements in Schdule VI. – True
3. The maximum rate of interest on the loan availed by a person resident in India from a no- resident india is –two percentage over the bank rate

4. The salary drawn by Mr. Shamkar is Basic 5,00, DA Rs 4,000, HRA Rs. 1000. The employer’s share of contribution to Provident fund is Rs. 900
5. The Balance Sheet and Profit and Loss Account shall be approved by the Board of Directors after they are signed on the behalf of Board – False
6. The maximum fine for not giving a copy of the balance sheet within 7 days to the person entitled to it is - Rs. 5,000
7. A company having paid up share capital of Rs.50 lakhs or more can appoint – a sole selling agent
8. Match

• Allocable surplus more than bonus payable – Carry Forward for set on
• Allocation surplus less than bonus payable—Carry forward for set off
• Allocation surplus is equal to bonus payable—No question of set on or set off
• Allocation surplus more than onus payable—No considered for set on or set off

9. In the case Ball v/s William hunt, it was help that, “incapacity for work ” includes – inability to get work
10. Banks maintaining NRE accounts are permitted to grant loans in india to the account holders

• For personal purposes
• For acquisition of house in india for his own residential use.

11. Gratuity shall be payable to an employee on his

• Superannuation
• Retirement or resignation
• Death or disablement

12. The maximum fine for not preserving the records for 8 yrs – 10,000
13. If the paid up capital of all companies is more than Rs. 25 lacs each, the maximum number of companies that a person can audit is – ten
14. Insurance of employer’s liability to pay gratuity under the act is compulsory , if the number of employees is less than 100. – False
15. An apprentice is not entitled to bonus – True

16. The books of account of every company relating to a period of not less than eight years immediately preceding the current year shall be preserved in the good order.
17. A person resident in india is free to send (export) any gift article of value not exceeding -5,00,000.
18. If an employer avoids payment of gratuity he can be punished with an imprisonment upto a maximum period of - Six months
19. Of the three copies received by him , ROC will return one copy and another copy to – Charge Holder.
20. These do not fall under the category of person resident in India.

• A person who has gone out of india or has taken up employment outside india.
• Body corporate register in india
• A branch or agency in india owned or controlled by a person resident outside india.

21. If the number of person employed is more than one thousand , the wages shall be paid – before the expiry of the tenth day.
22. The Committee for fixing minimum wages shall consist of persons representing the

• Employers
• Employees
• Independent persons

23. An auditor checks each and every transaction. – True
24. The following are not included in the basic wages

• HRA
• Bonus

25. Nomination facility can be availed by

• A share holder
• A depositor

26. A retrenched employee is eligible to get bonus provided he has worked for a minimum qualifying period. – True
27. If the salary payable is weekly on every Saturday and if the number of employees is less than 1,000 the last date for payment of wages for the period ending on 27-10-2007 will be 3-Nov-07
28. Balances in NRO accounts are not eligible for remittance outside India without the approval of the Reserve Bank of India
29. Reserve bank of india has issued Export Regulations which are effective from 1^st June,2000
30. These sectors require prior approval of Government for FDI

• Activities/items that require an industrial License.
• Proposals for acquisition of shares in an existing Indian company in Financial services sector.
• All proposals falling outside notified sectoral policy

31. ESI Corporation makes regulations for

• The manner and time for payment of contribution
• The entry in or upon books or cards of particulars of contribution paid and benefits distributed.
• The issue, safe custody, production , inspection and delivery of books or cards.

32. Foreign exchange for travel abroad can be purchase from banks against rupee payment in cash upto Rs. 50,000/-
33. The maximum amount of fine for violation of provisions of payment of bonus Act Rs. 1,000
34. A housing finance institution in india approved by National Housing bank cannot provide housing loan to a non – resident Indian. –False
35. The Functions of the debenture trustees shall generally be

• To protect the interest of holders of debentures
• To redress the grievances of holders of debentures

36. If the aggregate value of the foreign exchange in the form of currency notes,bank notes or travellers cheques brought in exceeds USD 10,00/- or its equivalent and /or the value of foreign currency exceeds USD 5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form
37. Preferences shares can be redeemed even if they are not fully paid up. False
38. If an employer violates the provisions of Payment of Bonus Act, he can be punished with an imprisonment upto a maximum period of Six months
39. A company has availed a loan of Rs. 10 lacs and cash credit facility of Rs. 5 lacs. It has repaid the laon. After this the charge is modified
40. Foreign Exchange management Act authorises the RBI to make such regulations as it may think fit to monitor the exports.
41. Foreign Investment in preference share fall outside the External Commercial Borrowing(ECB) guidelines. –True
42. A resident Indian going abroad for medical treatment abroad can purchase US Dollar 1,00,000 without RBI’s permission.
43. The Fund in RFC account are free from all restrictions regarding utilisation of foreign currency balances. True
44. Use of the International Credit Cards(ICCs)/ATMs/Debit Cards can be made for

• Making personal payments like subscription to foreign journals
• For travel abroad
• Meeting expenses while abroad

45. This Act authorizes the Central Government to formulate rules and regulation fir withdrawal of exchange for imports – FEMA
46. Type of chages – Section 125 of Companies Act

Date of notice of charge – Section 126 of companies Act

Registration of charges on properties acquired subject to charge – Section 127 of Comapnies Act

Register of charges to be kept by Registrar – Section 130 of Companies Act

47. This institute assists Employees’ State Insurance Corporation to discharge its functions efficiently

• Standing Committee
• Medical Benefit council

48. If at the time of making a nomination, the employee has no family then the nomination may be made in favour of any person. – True.
49. NRE accounts may be in the form of

• Savings Accounts
• Recurring Deposit Accounts
• Current Accounts

50. Minimum wages must provide for

• The bare sustenance of life
• The prevention of efficiency of the worker
• Some measure of education, medical requirement and amenities

51. Maximum Interest payable on gratuity is equal to 25% of gratuity payable
52. No individual FII/sub-account can acquire more than 10% of the paid up capital of an Indian company.
53. An Indirect tax Levied by Government on the goods manufactured in india is called as Excise Duty
54. The Preference shares be redeemed

• Out of the proceeds of fresh issue of shares
• Out of profits

55. The maximum % of net own funds that a company needs, to purchase the securities of other company is 60%
56. The Employees’ State Insurance Act,1948 provides for

• Medical care and treatment
• Payment of cash benefit during sickness
• Pension to the dependents on the death of a worker due to employment injury

57. An employee could not attend duty due to Bandh. The Action that can be taken by the employer will be – Treat the absence as authorised leave.
58. Mr. Vishal from Pune has received a guest from USA on tour to India. Mr. Vishal needs RBI permission to make expenses for his foreign guest – False
59. The compensation can be denied under WC Act

• If workman is under the influence of drink or drugs
• If accident is caused due to wilful disobedience of rules or order
• If there is disregard of safety devices.

60. This section of Central Excise Act,1944 deals with charging of Duty of Excise – Section 3
61. Accounting standard are issued by – ICAI
62. An Indian company, a proprietorship concern or a firm in india cannot accept deposits from a non- resident Indian on non- repatriation basis- False
63. The conditions applicable for the public deposits accepted by an Indian company from a Non-Resident Indian are

• The deposits are received under a public deposit scheme
• The amount representing the deposit is received by inward remittance from outside India through normal banking channels
• The company of aggregate deposits accepted by the company shall not exceed 35% of its net owned funds. Doubt

64. NRIs/PIOs can purchase/sell shares/convertible debentures of Indian companies on Stock Exchanges under – Portfolio Investment Scheme
65. FDI in sectors/activities to the extent permitted under automatic route requires prior approval either by the Government or RBI. – False
66. The maximum contribution that an employer has to contribute to meet the administrative expenses of the Deposit Linked Insurance fund is – ¼ th if their contribution to deposite Linked Insurance Fund.
67. The salary drawn by Mr. Shankar fir June 2007 is Basic Rs. 5,000/- DA Rs. 4,000/-,HRA Rs.1,000. During the month he was on leave without pay for 10days. The total credit PF wil be – Rs.600
68. The form for creation of a charge should be filed within 30 days from the date of execution of the document with the Registrar of Companies.
69. NRO account – Interest is taxable

NRE Account – Interest is tax free

FCNR(B) Account – Exchange risk borne by the depositor

FCNR(A) Account – Scheme discontinued

70. If a part of an year is less than six months, then it will be treated as a full year for the purposes of payment of gratuity – False
71. An employment in a factory or establishment to which the ESI Act applies is called –Insuable employment
72. The Employees’ Pension Scheme provides for

• Superannuation pension
• Widow or widower’s pension
• Children pension

73. The following sums shall be deducted from the gross profits as prior charges for computation of allocable surplus for bonus

• Depreciation
• Employment rebate
• Direct tax

74. The consignee abroad is not entitled to deduct the charges and his fee from the sale proceeds- false
75. A typical GDR is denominated in - US$
76. The maximum amount that a company can contribute to charitable and other funds not directly relating to the business of the Company in terms of percentage of average profits is 5%.
77. The maximum limit in terms of percentage of its average net profits which may be contributed by a Company in any financial year is 5%.
78. Taking personal jewellery out of India is governed by – Baggage Rules
79. A “private company means”

• A company which has a minimum paid-up capital of one lakh rupees
• A company which restricts the right to transfer its shares
• A company which limits the number of this member fifty

80. A memorandum containing such salient features of a prospectus as may be prescribed is called as – abridge prospectus
81. These books of accounts are to be kept by the company

• The profit and loss account
• The auditor’s report
• The board’s report

82. The “Value” on which the excise duty is payable as a percentage is called as – Invoice Price
83. The date of agreement for a foreign Technical collaboration is 10-3-2000. The date of commencement if commercial production is 20-1-2002. The last date upto which payment of royalty can be made to the foreign collaborator would be -1/20/12
84. An individual resident in India may borrow from a non- resident Indian or a person of Indian origin on the following conditions

• The loan should be in rupees
• The amount borrowed shall not be allowed to be repatriated outside india
• The period of loan shall not exceed three years

85. A workman has worked for 250 days on daily wages basis. Daily wages paid to him is Rs. 30,000/-, the average monthly wages for the purpose of compensation will be – 3,600
86. A person resident in india, who has acquired immovable property outside india may transfer it by way of gift to his relative who is a person resident in India. – True
87. A company should give intimation of appointment to every auditor within 7 days of appointment.
88. Any trade settlements can be freely made through Rupee accounts of Bhutanese and Nepalese nations.
89. Preference shares can be

• Cumulative Redeemable Preference shares
• Non-cumulative Redeemable Preference shares

90. Certificate from statutory Auditors or chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside india should be send to RBI.- True
91. The maximum deduction from salary is 50% if the recovery of co-operative society is not involved.
92. The salary drawn by Mr. Shankar is Basic Rs. 5,000/- , DA Rs. 4,00/- HRA Rs. 1,000. The total credit to PF will be – Rs. 900/-
93. In case of death of an employee, the amount of balance in EPF account is paid to nominee/legal heirs.- True
94. A company can keep books of account at any other place than the registered office of the company – True
95. Employer’s contribution to EPF as % of eligible wages – 10%

Interest payable by employer for delayed payment of EPF – 12%

Employer’s contribution to Pension Fund as % of eligible wages – 8.33 %

Employer’s contribution to Deposit Linked Insurance Fund as % of eligible wages – 1%

96. For the purpose of the section 9 of the Excise Act, a fact is said to be proved only when

• The Court believes it to exist

97. Deductions made by the employer from the salary payable to employee which are authorised by the Payment of Wages Act are called as authorised deductions.
98. Every notification under clause(f) of the first proviso to sub-section(2) of 11B of the Excise Act shall be laid before each House of Parliament.
99. Provisions relating to Investment shall not relate to these companies

• Insurance company
• Housing company

100. A non-executive Chairman is not entitled to maintain a Chairman’s office at the company’s expense – False
101. A foreign company can set up Liaison , Project and Branch Offices in India after obtaining – approval from RBI
102. The EPF Act was accordingly extended to many additional industries by the end of March,1957. – true
103. Besides authorised dealer, full-fledged money changers are also permitted to release exchange for business and private visits
104. Persons resident in india are permitted to maintain foreign currency accounts in India. under the following schemes

• EEFC Account
• RFC Account

105. A charge which is not registered is void against these persons

• Liquidators
• Creditors

106. A company has to execute this document if the period of debenture redemption exceeds 18 months. – Trust Deed
107. However , it is also possible for an FII to declare itself a 100% debt FII in which case it can make – its entire investment in debt instruments
108. Manager- Has the management of the whole or substantially the whole of the affairs of the company.

Managing Director-Is entrusted with substantial power of management which would not be otherwise be exercisable by him

Office-Included any director, manager or secretary

Board-Means the Board of Directors of the policy formulation committee

109. A person resident in India is not free to hold, own, transfer or invest in foreign currency ,foreign security or any immovable property situated outside India if such currency, security or property was acquired ,held or owned by such person when he was resident outside India or inherited from a person who was resident outside India –false
110. All pecuniary relationship or transactions of the non-executive directors vis-à-vis the company shall be – disclosed in the annual report
111. Allocable surplus means 60% of the avaible surplus in an accounting year.
112. A person resident in india , not being a company incorporated in india, may borrow in rupees on non-repatriation basis from a non- resident Indian or a person of Indian origin

• The amount of loan shall be received by way of inward remittance from outside india
• The period of loan shall not exceed three years
• The rate of interest on the loan shall not exceed two percentage points over the bank

113. No gratuity shall be liable to attachment in executing of any decree or order of any civil, revenue or criminal court
114. Salary and wages does not include dearness allowance – false
115. Words ‘Internation Global Continental being the first name-

Words ‘Internation Global Continental’ being used within the name with bracket-

Word ‘Hindustan, India, Bharat, being used within the name without brackets-

For use of word ‘Enterprise’ within the name

116. The Reserve Bank has made Foreign Exchange Management Regulation ,2000 which came into force – 1^st day of June 2000
117. FIIs are required to allocate their investment between equity and debt instrument in the ratio of 70:30:00
118. In relation of any other establishment which is not a factory , the term employer includes the person – who has the ultimate control over the affairs
119. Dependents include

• A widow
• A minor legitimate or adopted sin
• An unmarried daughter

120. Premature withdrawal of FCNR(B) deposits for the purpose of opening NRNR Rupee Deposit accounts with an authorised dealer other that the one with whom the account FCNR(B) is maintain, will attract penalty – true
121. The company articles require a person to hold the qualification shares before his appointment or to obtain them within shorter time – than two months
122. The main purpose of the payment of wages act 1936 is to ensure

• Regular and timely payment of wages to the employed person
• To prevent unauthorized deductions being made from wages P 2

123. The ESI act extends to the whole of India – True
124. All payment made under the foreign investment and technology transfer includes the levy of cess under the Research and Development cess act,1986 – true
125. Rate of interest applicable to these accounts shall be in accordance with the direction/instructions issued by – Reserve bank from time to time
126. In connection with private visit abroad , viz., for tourism , etc. Foreign exchange upto USD 10,000, in any one calendar year may be – obtained from an authorised dealer
127. The court has to record reasons in writing – for imposing lesser punishment
128. ‘Contribution’ means the sum of money payable to the Corporation by the principal employer.
129. Any person resident outside India may open NRO account .
130. Main types of shares – Equity shares, preference shares
131. A Liaison office can carry on only – liaison activity
132. Import Licenses are for the CIF value and cannot be utilized to the full amount to cover the FOB value of import. – True
133. Nothing in the bonus act shall apply to any other financial institution other than a banking company which the central government may specify having regard to

• Its capital structure
• Its objectives and the nature of its activities
• The nature and extent of financial assistance or any concession given to it by the government

134. Deduction may be on account of – the absence of employed person from the place where he is required to work

Such absence may be for whole or any part of the period during which –he is so required to work

An employed person shall be deemed to be absent if, he refuses to carry out his work- In pursuance of a stay or strike

The amount of such deductions must bear to his wages the same proportion as - his absence bears to the total wage period

135. Words and expression defined in the industrial disputes act shall have – the same meaning in the bonus act
136. Debenture – A secured Loan redeemable after a specified period

Preference share-Preference in dividend and redemption

Equity share- Residual shareholder

Commercial Paper- Negotiable instrument to raise short term finance

137. A person who ultimate controls is the employer
138. The situation that investors could invest in equities of overseas listed firms that hold at least 20% in a listed Indian firm which was made in terms of our A.P.(DIR series) Circualr No. 66 dated January 13,2003 continues as an additional facilit
139. The auditor’s report shall state

• Whether he has obtained all the information and explanations
• Whether in his opinion, proper books of account as required by law have been maintained

140. For the purpose of the section 9 of the Excise Act, a fact said to be proved only when

• Court believes it to exist

141. Every Inquiry by the Excise authority shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code.
142. Steps that might be Initiated by a debenture trustee

• Ensure that the assets of the Company are sufficient to discharge the principal amounts
• Ensuring that the terms of prospectus are not inconsistent with the terms of the debentures
• Call meetings of the debenture holders

143. Balance sheet or profit and loss account shall include any notes thereon or – in documents annexed thereto
144. Offences under section 9 of the Excise act shall be deemed to be – Non – Cognizable
145. GDR- global Depository Receipts are essentially those instrument , which possess a certain number of underlying- shares in the custody of depository bank
146. Form 8 & 13 – creation of charge, modification of charge
147. No amount of foreign exchange can be remitted outside India to become eligible or for earning point or credits for immigration. – True
148. Any nomination made by an employee in favour of a person who is not the member of his family, shall be void.- true
149. In respect of job works under notification No. 214/86, the Merchant Manufacturer is liable to pay the excise duty.

Legal Aspect of Finance(New)

Legal Aspects of Finance

True/False
Question
Indian companies are exempted from filing a return by ECB-2.
Correct Answer
False
Your Answer
False

Select The Blank
Question
The minimum wages act which determines the rate of wages in industries specified in the schedule attached to the act are called ________
Correct Answer
Scheduled employment
Your Answer
Promotions

Match The Following
Question
Correct Answer
Your Answer
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
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.

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

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

Multiple Choice Single Answer
Question
A person cannot be appointed as a director in more than :-
Correct Answer
20 companies
Your Answer
20 companies

Select The Blank
Question
Board has power to receive of notice of ________.
Correct Answer
Disclosure of interest
Your Answer
Disclosure of interest

Multiple Choice Multiple Answer
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

Multiple Choice Single Answer
Question
Maturity period for USD 5 million scheme is :-
Correct Answer
Three years
Your Answer
Three years

Multiple Choice Multiple 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

Multiple Choice Multiple Answer
Question
The register in respect of every investment or loan made, contains
Correct Answer
The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made , The name of body corporate
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

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
________ is a scheduled employment carried out under the authority of central government.
Correct Answer
Competent authority
Your Answer
Competent authority

Multiple Choice Single Answer
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

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
AICTE Act
Borrowings in Rupees
Regulated ROI
Regulated ROI
NCD issue
Public issue
Public issue

Multiple Choice Multiple Answer
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 , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits

True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
False

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

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

Select The Blank
Question
All transactions of the ________ with the company shall be disclosed in the annual report.
Correct Answer
Non executive chairman
Your Answer
Non executive chairman

Multiple Choice Single Answer
Question
Which companies have to comply with the provisions of Clause 49 of listing agreement ?
Correct Answer
Listed Companies
Your Answer
Listed Companies

Select The Blank
Question
The Forms 8 &13 should be filed in ________ to ragistrar of companies.
Correct Answer
Triplicate
Your Answer
Triplicate

Multiple Choice Single Answer
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

Multiple Choice Multiple Answer
Question
Form No. 1 can be signed by :-
Correct Answer
Chartered Accountant , Cost & Works Accountant , Advocate
Your Answer
Chartered Accountant , Cost & Works Accountant , Advocate

True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
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

Multiple Choice Single Answer
Question
Proxy form generally should be :-
Correct Answer
Duly stamped and signed by all the joint-holders
Your Answer
Duly stamped and signed by all the joint-holders

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
Chairman

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

Multiple Choice Multiple Answer
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

Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer

Multiple Choice Single Answer
Question
If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :-
Correct Answer
Company Law Board
Your Answer
Company Law Board

Multiple Choice Multiple Answer
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

Select The Blank
Question
The auditor has to give his report that the accounts of the company gives ________.
Correct Answer
True & Fair view
Your Answer
True & Fair view

True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary General Meeting.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Maturity period for foreign currency credit by overseas suppliers is :-
Correct Answer
More than 6 months & less 3 years
Your Answer
More than 6 months & less 3 years

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
Acquiring foreign security on gift is allowed.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Board's Report shall include :-
Correct Answer
Dividend recommended , Financial position of the company , Amounts transferred to Reserves
Your Answer
Dividend recommended , Financial position of the company , Amounts transferred to Reserves

Multiple Choice Multiple Answer
Question
What are the general provisions for punishment of other offences?
Correct Answer
Section 22 provides for the provision , Punishable with fine , Rs 500 fine
Your Answer
Section 22 provides for the provision , Punishable with fine , Rs 500 fine

Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.

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

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

Multiple Choice Single Answer
Question
In each board meeting director is paid by remuneration, which is known as :-
Correct Answer
Sitting fees
Your Answer
Sitting fees

True/False
Question
An independent director is an executive of a company in the immediately preceding 3 financial years of the company.
Correct Answer
False
Your Answer
False

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
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True

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
Your Answer
To ensure regular and timely payment of wages to employed persons

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
Your Answer
Arvind mills ltd case

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
Railways ticket

True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The responsibility of placing the annual accounts before the AGM is on
Correct Answer
Board of Directors
Your Answer
Board of Directors

Multiple Choice Single Answer
Question
Accounting Standards are issued by :-
Correct Answer
Institute of Chartered Accountants
Your Answer
Institute of Chartered Accountants

Multiple Choice Single Answer
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

Multiple Choice Multiple Answer
Question
The annual accounts of the company are signed on behalf of the Board by :-
Correct Answer
Managing director , Two Directors , Company Secretary
Your Answer
Managing director , Two Directors , Company Secretary

Multiple Choice Multiple 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

Multiple Choice Multiple Answer
Question
Following have the right to inspect books of account :-
Correct Answer
Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government
Your Answer
Officer of SEBI (if authorised) , Authorised officer of Government

Multiple Choice Multiple Answer
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
It is advisable to close the financial year on ________.
Correct Answer
31st March
Your Answer
31st March

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

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
Chairman

True/False
Question
Statutory Meeting must be held on a working day.
Correct Answer
False
Your Answer
True

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

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

Multiple Choice Single Answer
Question
A person can not be appointed as managing or whole time director in more than :-
Correct Answer
Two companies
Your Answer
Five companies

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

Select The Blank
Question
Director can cease to be a director, if he is absent himself from ________ consecutive meetings.
Correct Answer
Three
Your Answer
Three

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
Only individuals can be appointed as directors of the company.
Correct Answer
True
Your Answer
True

Multiple Choice Single 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
2 years

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 , Private Companies , Non Profit making companies

Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
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
The management should clearly disclose ________ in auditors report
Correct Answer
Contingent liabilities
Your Answer
Contingent liabilities

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

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

True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
False

True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
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

Select The Blank
Question
________means all remuneration expressed in terms of money.
Correct Answer
Wages
Your Answer
Wages

Select The Blank
Question
The minimum wages act came in force in the year________.
Correct Answer
1948
Your Answer
1948

True/False
Question
The act is undoubtedly a welfare legislation in favour of workers and more than an essential measure for economic upliftment of the workers in the sweated industries.
Correct Answer
True
Your Answer
True

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

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

Multiple Choice Single Answer
Question
Long - term borrowings schemes have which maturity period?
Correct Answer
Eight years
Your Answer
Eight years

Multiple Choice Multiple Answer
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

True/False
Question
Owned foreign exchange is not permitted.
Correct Answer
False
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
WOS
Royalty payment
Royalty payment
Technical collaboration
Foreign companies
Foreign companies
Automatic route
RBI
RBI
Royalty continuation
Share holding
Share holding

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

Match The Following
Question
Correct Answer
Your Answer
salary
does not include travelling concession
does not include travelling concession
public sector establishment
establishment owned by government
establishment owned by government
interim and final determination of an industrial dispute
award
award
allocable surplus
67% surplus in the accounting year
67% surplus in the accounting year

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

Multiple Choice Single Answer
Question
If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :-
Correct Answer
Company Law Board
Your Answer
Company Law Board

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

Match The Following
Question 1 Correct Answer Your Answer
Royalty continuation Share holding Share holding
WOS Royalty payment Owned exchange
Technical collaboration Foreign companies Foreign companies
Automatic route RBI RBI
Select The Blank
Question 2 ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO
Your Answer Treasurer
Multiple Choice Multiple Answer
Question 3 Different classes of shareholders' meetings are :-
Correct Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary
General Meeting
Your Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary
Statutory Meeting
Multiple Choice Multiple Answer
Question 4 Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable
association
Your Answer Private limited company , Unlimited company , Charitable
association
True/False
Question 5 Board may appoint additional directors.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 6 Proxy form generally should be :-
Correct Answer Duly stamped and signed by all the joint-holders
Your Answer Duly stamped and signed by all the joint-holders
Select The Blank
Question 7 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
Multiple Choice Single Answer
Question 8 Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 3500
True/False
Question 9 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
Multiple Choice Single Answer
Question 10 Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Your Answer 24 hours before the meeting
Select The Blank
Question 11 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 14 days
Multiple Choice Multiple Answer
Question 12 Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched
employee
Your Answer Temporary workmen , Part time employee , Retrenched
employee
Multiple Choice Single Answer
Question 13 Minimum number of Directors who should sign annual accounts :-
Correct Answer 2
Your Answer 2
Multiple Choice Multiple Answer
Question 14 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
Select The Blank
Question 15 First AGM should be held within ________ from closure of
financial year.
Correct Answer 9 months
Your Answer 6 months
Multiple Choice Multiple Answer
Question 16 Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate
Your Answer Chartered Accountant , Management Accountant , Cost & Works
Accountant
Select The Blank
Question 17 ________ 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 18 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 19 Wages includes any travelling allowance for travel concession.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question 20 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 Landmark in the history of labour legislation in the country
Multiple Choice Single Answer
Question 21 A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Immoral
True/False
Question 22 Every company shall have a qualified and independent audit
committee.
Correct Answer True
Your Answer True
True/False
Question 23 Director can be removed from his post.
Correct Answer True
Your Answer True
True/False
Question 24 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
Multiple Choice Single Answer
Question 25 Who issues a certificate of compliance of conditions of corporate
governance?
Correct Answer Auditors or company secretaries
Your Answer Registrar of companies
Multiple Choice Single Answer
Question 26 As per section 3 who fixes the minimum rate of wages to be paid
to the employees ?
Correct Answer Appropriate government
Your Answer Management
Select The Blank
Question 27 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
Select The Blank
Question 28 Board has power to receive of notice of ________.
Correct Answer Disclosure of interest
Your Answer Disclosure of interest
Multiple Choice Multiple Answer
Question 29 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
Select The Blank
Question 30 The minimum wages act came in force in the year________.
Correct Answer 1948
Your Answer 1948
Multiple Choice Multiple Answer
Question 31 Public limited company's directors have following conditions :-
Correct Answer Minimum number is three , Should be individuals , Have sound
mind
Your Answer Minimum number is three , Should be individuals , Have sound
mind
Multiple Choice Single Answer
Question 32 What types of rates can be fixed for different zones and
localities?
Correct Answer Different
Your Answer Different
Match The Following
Question 33 Correct Answer Your Answer
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
Multiple Choice Single Answer
Question 34 The Document spelling out internal management of the Company
is :-
Correct Answer Articles of Association
Your Answer Articles of Association
Select The Blank
Question 35 The minimum wages to the obligations created by the convention
no 26 of ________.
Correct Answer International labour organisation
Your Answer International labour organisation
Select The Blank
Question 36 ________ is annexed to the Directors' Report.
Correct Answer Compliance Report
Your Answer Chairman's Statement/ Speech
Multiple Choice Single Answer
Question 37 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
True/False
Question 38 Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer True
Your Answer True
Select The Blank
Question 39 The auditor has to give his report that the accounts of the
company gives ________.
Correct Answer True & Fair view
Your Answer True & Fair view
Multiple Choice Multiple Answer
Question 40 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
Multiple Choice Multiple Answer
Question 41 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
Multiple Choice Multiple Answer
Question 42 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 43 Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question 44 Cap on investment by person resident outside India, for Housing
& Real Estate Sector is :-
Correct Answer 1
Your Answer 1
True/False
Question 45 A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False
Your Answer True
True/False
Question 46 Debenture-holder of a company can ask for annual accounts.
Correct Answer True
Your Answer False
True/False
Question 47 Wages includes the value of any house accommodation or
supply of light and water.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question 1 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 2 Government can authorise for supply of essential commodities at
concessional rates and pay wages in kind.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question 3 What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum
piece rate , Guaranteed time rate for those employed in piece work for the
purpose of securing to such employees a minimum rate of wages on time
work basis
Your Answer Time work known as minimum time rate , Piece work known as minimum
piece rate , Guaranteed time rate for those employed in piece work for the
purpose of securing to such employees a minimum rate of wages on time
work basis
Multiple Choice Multiple Answer
Question 4 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
True/False
Question 5 Bonus is an ex gratia payment.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question 6 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

Multiple Choice Single Answer
Question 7 Whenever the Loan taken from bank or financial institution is repaid in full,
the company has to file Form no 17 &13 within :-
Correct Answer 30 Days
Your Answer 45 Dyas
Multiple Choice Multiple Answer
Question 8 Ordinary business includes :-
Correct Answer Declaration of dividend , Appointment of directors , Appointment of auditor
Your Answer Declaration of bonus , Declaration of dividend , Appointment of directors
True/False
Question 9 Retiring director may be eligible for reappointment.
Correct Answer True
Your Answer False
Select The Blank
Question 10 The act defines ________ in private sector and public sector.
Correct Answer Establishment
Your Answer Establishment
Match The Following
Question 11 Correct Answer Your Answer
Interim Dividend Board of Directors Board of Directors
Reduction of capital Special Resolution Special Resolution
Appointment of Managing
Director
Ordinary Resolution Ordinary Resolution
Accounting Standards National Advisory Committee National Advisory Committee
True/False
Question 12 Financial year and calendar year are one and the same thing.
Correct Answer False
Your Answer False
True/False
Question 13 Wages includes any remuneration payable under any award or settlement
between the parties or order of court.
Correct Answer True
Your Answer True
Select The Blank
Question 14 For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Resolution authorising alteration
Multiple Choice Multiple Answer
Question 15 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
Multiple Choice Single Answer
Question 16 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
Multiple Choice Single Answer
Question 17 The director shall not be a member of more than how many committees
across all the companies in which he is a director?
Correct Answer 10
Your Answer 3
Multiple Choice Single Answer
Question 18 The maximum number of Directors that every company shall have is :-
Correct Answer Twelve
Your Answer Eleven
Select The Blank
Question 19 The uses and applications of the funds raised shall be disclosed to the audit
committee on a ________basis.
Correct Answer Quarterly
Your Answer Quarterly
Multiple Choice Multiple Answer
Question 20 Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Monthly , Quarterly , Annually
True/False
Question 21 Wages does not include an amenity or service or special order of the
appropriate government.
Correct Answer True
Your Answer True
Select The Blank
Question 22 Free selling/drawl of foreign exchange to authorized dealer(AD) for
________.
Correct Answer Current account
Your Answer Current account
Select The Blank
Question 23 WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Automatic route
Multiple Choice Single Answer
Question 24 Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Administrators
Multiple Choice Multiple Answer
Question 25 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 He is found to be of unsound mind , He is declared as an insolvent , He has
not taken qualification shares

Multiple Choice Single Answer
Question 26 In case a company has a non executive chairman, than how much proportion
of the board should comprise of a independent directors?
Correct Answer 1/3rd
Your Answer 1/3rd
Select The Blank
Question 27 An auditor appointed in a ________ vacancy shall hold office until the
conclusion of next annual general meeting.
Correct Answer Casual
Your Answer Emergency
Multiple Choice Multiple Answer
Question 28 FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate
Select The Blank
Question 29 The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Contingent liabilities
True/False
Question 30 Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question 31 WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , By automatic route
Multiple Choice Single Answer
Question 32 What amount of paid up capital should the listed companies have to comply
with the provisions of Clause 49 of listing agreement ?
Correct Answer Rs 3 crores
Your Answer Rs 5 crores
True/False
Question 33 The minimum wages act came in force on 15 march 1968
Correct Answer False
Your Answer False
Match The Following
Question 34 Correct Answer Your Answer
Remuneration policy Remuneration committee Board procedure
Board of directors Board procedure Annexure 1C
Audit committee Qualified and independent
audit committee
Qualified and independent
audit committee
Net worth more than 25 corers Comply with clause 49 Comply with clause 49
Multiple Choice Multiple Answer
Question 35 The provision related to register are not applicable to :-
Correct Answer Banking company or insurance company , A company whose principle
business is acquisition of shares, stock, debentures or other securities , A
private limited company unless it is a subsidiary of public company.
Your Answer Banking company or insurance company , A company whose principle
business is acquisition of shares, stock, debentures or other securities , A
listed company
Select The Blank
Question 36 The form should be filled within ________ days from the date of execution of
document.
Correct Answer 30 days
Your Answer 30 days
Multiple Choice Single Answer
Question 37 To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
True/False
Question 38 A proxy can appoint another proxy.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question 39 What does the minimum wages act determine ?
Correct Answer The minimum wages in industries specified in the schedule
Your Answer The minimum wages in industries specified in the schedule
Select The Blank
Question 40 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
Multiple Choice Multiple Answer
Question 41 Current Account transactions are permitted if payment is made out of :-
Correct Answer EEFC Account , RFC Account
Your Answer Current Account , EEFC Account , RFC Account
Multiple Choice Single Answer
Question 42 A company which restricts the right to transfer its shares is :-
Correct Answer Private Ltd. Company
Your Answer Public Ltd Company
Select The Blank
Question 43 ________ 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
True/False
Question 44 Company may have nominee director.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question 45 In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member

Your Answer Central government
Multiple Choice Single Answer
Question 46 A person can not be appointed as managing or whole time director in more
than :-
Correct Answer Two companies
Your Answer Two companies
Select The Blank
Question 47 If the articles are silent who will be the ________ director of the company, the
subscribers to the members shall deemed to be directors of the company.
Correct Answer First
Your Answer Full time

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

Multiple Choice Single Answer
Question
The requisite registration fees is payable to ROC depending upon
Correct Answer
Authorised Capital of the Company
Your Answer
Paid-up capital of the Company

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

Multiple Choice Multiple Answer
Question
Public Company means a company which :-
Correct Answer
Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company
Your Answer
Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company

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

Select The Blank
Question
The detention period where the amount of penalty is greater than 10 million is ________.
Correct Answer
3 years
Your Answer
3 years

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

Multiple Choice Single Answer
Question
Audit committee shall consist of not less than :-
Correct Answer
Three directors
Your Answer
Three directors

Select The Blank
Question
If the articles are silent who will be the ________ director of the company, the subscribers to the members shall deemed to be directors of the company.
Correct Answer
First
Your Answer
First

True/False
Question
Debenture-holder of a company can ask for annual accounts.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
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

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

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

Multiple Choice Single Answer
Question
Any contravention of provisions of FEMA will attract penalty upto :-
Correct Answer
Rs. 200000
Your Answer
Rs. 200000

True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What does the minimum wages act determine ?
Correct Answer
The minimum wages in industries specified in the schedule
Your Answer
The minimum wages in industries specified in the schedule

Multiple Choice Multiple Answer
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
He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares

True/False
Question
Companies listed on recognized stock exchange are not allowed to invest in foreign companies.
Correct Answer
False
Your Answer
False

True/False
Question
Board may appoint additional directors.
Correct Answer
True
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

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

Select The Blank
Question
The shares with differential voting rights shall not exceed ________ of the total share capital issued.
Correct Answer
0.25
Your Answer
0.25

Multiple Choice Multiple Answer
Question
Statutory Report pertains to :-
Correct Answer
Funds raised by the company , Utilisation of funds , Investments made by the company
Your Answer
Funds raised by the company , Utilisation of funds , Investments made by the company

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
The chairman of the audit committee shall attend ________ to provide clarification on matters relating to audit.
Correct Answer
Annual general meeting
Your Answer
Annual general meeting

Multiple Choice Single Answer
Question
Explanatory Statement should be annexed to Notice for :-
Correct Answer
Special business
Your Answer
Special business

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

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

Multiple Choice Single Answer
Question
Declaration of Compliance with requirements of the Companies Act
Correct Answer
Form 1
Your Answer
Form 29

Multiple Choice Single Answer
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
Journals

Select The Blank
Question
The minimum wages to the obligations created by the convention no 26 of ________.
Correct Answer
International labour organisation
Your Answer
International labour organisation

Multiple Choice Multiple Answer
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
Power to make calls on shares , Power to issue debentures , Power to borrow money

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
False

Multiple Choice Multiple Answer
Question
Particulars of charge under sec.125 contain :-
Correct Answer
Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged
Your Answer
Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged

Match The Following
Question
Correct Answer
Your Answer
Remuneration policy
Remuneration committee
Remuneration committee
Board of directors
Board procedure
Board procedure
Audit committee
Qualified and independent audit committee
Qualified and independent audit committee
Net worth more than 25 corers
Comply with clause 49
Comply with clause 49

Multiple Choice Multiple Answer
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

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

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
Your Answer
For which any application claim has already been presented , Direction of claim already given' , Amount adjudged is not due to penalty

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

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

Multiple Choice Single Answer
Question
What right does the payment of bonus act give ?
Correct Answer
Statutory right to share in profits
Your Answer
Statutory right to share in profits

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

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

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

Multiple Choice Multiple Answer
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
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Registration fees
Authorised Capital of the Company
Form 18
Certified resolution
Form 23
Form 23
Activities of company
Memorandum of Association
Articles of Association
Situation of registered office
Form 18
Memorandum of Association

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
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
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
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
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
Multiple Choice Single Answer
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
Section 3 of wages act
Every employer responsible for payment to employed persons
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
Your 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
Your 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
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
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
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
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
Your Answer
Arvind mills ltd case
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
Your Answer
Articles of Association
Select The Blank
Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your 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
Your Answer
To ensure regular and timely payment of wages to employed persons
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Reduction of capital
Special Resolution
Special Resolution
Appointment of Managing Director
Ordinary Resolution
ROC
Accounting Standards
National Advisory Committee
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
Your 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
Your 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
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
Multiple Choice Single Answer
Question
When was the factories act passed?
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since
already paid on original authorised capital.
Correct Answer
False
Your AnswerFalse

Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
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 Multiple Answer
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
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 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
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 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
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
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
Question Correct Answer Your Answer
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
Multiple Choice Single Answer
Question FEMA Norms are compatible with :-
Correct Answer FERA
Your Answer FERA
Multiple Choice Multiple Answer
Question WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , Offshore payment , By automatic route
Multiple Choice Multiple Answer
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.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
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 including overtime
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 90 Days
Multiple Choice Multiple 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 Shares of the company bought & sold by the members , Money received
& expended , Sales & purchases of goods
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
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.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question A director of a company can be removed by :-
Correct Answer Ordinary resolution
Your Answer Special resolution
Multiple Choice Single Answer
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.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Solvent
Match The Following
Question Correct Answer Your Answer
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.
Correct Answer 30 days
Your Answer 15 days
Multiple Choice Multiple Answer
Question Debentures can be :-
Correct Answer Redeemable , Convertible , Party convertible and redeemable
Your Answer Redeemable , Convertible , Party convertible and redeemable
Multiple Choice Single Answer
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.
Correct Answer 30 daysYour Answer 21 days

Multiple Choice Single Answer
Question For which activity FDI is not prohibited?
Correct Answer Insurance
Your Answer Insurance
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Quarterly , Annually , Monthly
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
Your Answer To ensure regular and timely payment of wages to employed
persons
Multiple Choice Single 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
Multiple Choice Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948
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
True/False
Question Bonus is an ex gratia payment.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Compliance Report is signed by :-
Correct Answer Company Secretary in practice
Your Answer Company Secretary in practice
Multiple Choice Single 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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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 International labour organisation
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
Multiple Choice Multiple Answer
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 He is found to be of unsound mind , He is declared as an insolvent
, He has not taken qualification shares
Multiple Choice Single 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 StandardsNational Advisory Committee National Advisory
Committee
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable
association
Your Answer Charitable association
Multiple Choice Multiple Answer
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
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
Select The Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government
Your Answer Central government
Multiple Choice Single Answer
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
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
Your Answer Arvind mills ltd case
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 Fidelity guarantee bond
Select The Blank
Question A member shall have right to apply for operations and mismanagement of
the company provided application is made by members not less than ________ or by the
members holding not less than one tenth of total number of shares in the share capital of
the company.
Correct Answer 100
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
Multiple Choice Multiple Answer
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 Power to make calls on shares , Power to issue debentures , Power
to borrow money
Multiple Choice Single Answer
Question Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business
Your Answer Special business
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
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
Multiple Choice Multiple Answer
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

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
Multiple Choice Single Answer
Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Insolvent
Multiple Choice Single Answer
Question Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 2500
True/False
Question Authorized dealer is required to avail license under the exim policy in
force.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The earlier "Fast Track" investments route has been replaced by?
Correct Answer Automatic
Your Answer Automatic
Multiple Choice Single Answer
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
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
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 International labour organisation
Your Answer International labour organisation
Multiple Choice Multiple 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
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 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 Single 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
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 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 National Advisory Committee
Appointment of Managing Director Ordinary Resolution Board of Directors
Accounting StandardsNational Advisory Committee 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
Multiple Choice Multiple Answer
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the company ,
Amounts transferred to Reserves
Your Answer Dividend recommended , Taxes paid , Financial position of the
company
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
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
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question Companies Act presently implemented and adhered by companies is :-
Correct Answer Companies Act, 1956
Your Answer Companies Act, 1956
Multiple Choice Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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 Power to make calls on shares , Power to issue debentures , Power
to borrow money
Multiple Choice Single Answer
Question The period for realization for export of goods from the date of shipment is
at :-
Correct Answer Six month
Your Answer Six month
Multiple Choice Single Answer
Question Accounting Standards are issued by :-
Correct Answer Institute of Chartered Accountants
Your Answer Institute of Chartered Accountants
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 , Settlement between the parties or
order of court , Overtime
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
Your Answer Ensure payment of wages to the employed , Prevent unauthorised
deductions , Prevent arbitrary fines
Select The Blank
Question ________means all remuneration expressed in terms of money.
Correct Answer Wages
Your Answer Wages
Multiple Choice Multiple Answer
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 actEvery employer responsible for payment to employed persons
Every employer responsible for payment to employed persons
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
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
Multiple Choice Multiple Answer
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 A temporary workman is not entitled to bonus though he works for a few
days in the organisation.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
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

Multiple Choice Single Answer
Question For which activity FDI is not prohibited?
Correct Answer Insurance
Your Answer Insurance
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Quarterly , Annually , Monthly
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
Your Answer To ensure regular and timely payment of wages to employed
persons
Multiple Choice Single 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
Multiple Choice Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948
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
True/False
Question Bonus is an ex gratia payment.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Compliance Report is signed by :-
Correct Answer Company Secretary in practice
Your Answer Company Secretary in practice
Multiple Choice Single 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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
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 International labour organisation
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
Multiple Choice Multiple Answer
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 He is found to be of unsound mind , He is declared as an insolvent
, He has not taken qualification shares
Multiple Choice Single 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 StandardsNational Advisory Committee National Advisory
Committee
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable
association
Your Answer Charitable association
Multiple Choice Multiple Answer
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
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
Select The Blank
Question Under the industrial disputes act 1947________is an appropriate
government.
Correct Answer Central government
Your Answer Central government
Multiple Choice Single Answer
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
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
Your Answer Arvind mills ltd case
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 Fidelity guarantee bond
Select The Blank
Question A member shall have right to apply for operations and mismanagement of
the company provided application is made by members not less than ________ or by the
members holding not less than one tenth of total number of shares in the share capital of
the company.
Correct Answer 100
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
Multiple Choice Multiple Answer
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 Power to make calls on shares , Power to issue debentures , Power
to borrow money
Multiple Choice Single Answer
Question Explanatory Statement should be annexed to Notice for :-
Correct Answer Special business
Your Answer Special business
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
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
Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
Question
Director can be appointed without counting the number in :-
Correct Answer
Private limited company , Unlimited company , Charitable association
Your Answer
Unlimited company , Charitable association
Multiple Choice Multiple Answer
Question
Who is entitled to bonus?
Correct Answer
Temporary workmen , Part time employee , Retrenched employee
Your Answer
Temporary workmen , Part time employee , Retrenched employee
True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
True
True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True
Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.
Multiple Choice Multiple Answer
Question
Company can take loan from :-
Correct Answer
Banks , Financial Institutions , Debenture Holders
Your Answer
Banks , Financial Institutions , Debenture Holders
Multiple Choice Single Answer
Question
Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer
Reserve Bank of India
Your Answer
Exchange Control Board
Select The Blank
Question
The minimum wages act came in force in the year________.
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
Under section ________ period in respect of which wages would be paid would be
determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer
Multiple Choice Single Answer
Question
For which activity FDI is not prohibited?
Correct Answer
Insurance
Your Answer
Insurance
Multiple Choice Multiple Answer
Question
Following Resolutions must be passed by Postal Ballot :-
Correct Answer
Alteration in Object Clause , Buy-back of own shares , Variation in rights attached
to class of shares
Your Answer
Alteration in Object Clause , Buy-back of own shares
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
It is advisable to close the financial year on ________.
Correct Answer
31st March
Your Answer
31st March
Multiple Choice Single Answer
Question
If an auditor after his appointment becomes subject to any of the disqualifications, it
is treated that the office is :-
Correct Answer
Vacated
Your Answer
Vacated
Multiple Choice Multiple Answer
Question
Board's Report shall include :-
Correct Answer
Dividend recommended , Financial position of the company , Amounts transferred
to Reserves
Your Answer
Dividend recommended , Taxes paid , Financial position of the company
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Employee of the company
Doing legal things
Insolvent
A person who is not in a position to pay his dues
A person who is not in a position to pay his dues
Moral turpitude
Doing immoral things
Doing immoral things
Call on share
Demand of remaining part of share capital value
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
Multiple Choice Single Answer
Question
Who issues a certificate of compliance of conditions of corporate governance?
Correct Answer
Auditors or company secretaries
Your Answer
Registrar of companies
True/False
Question
Wages includes the value of any house accommodation or supply of light and
water.
Correct Answer
False
Your Answer
False
True/False
Question
A temporary workman is not entitled to bonus though he works for a few days in the
organisation.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
Question
Public limited company's directors have following conditions :-
Correct Answer
Minimum number is three , Should be individuals , Have sound mind
Your Answer
Minimum number is three , Should be individuals , Have sound mind
True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True
True/False
Question
Any gratuity payable on termination of employment is included in wages.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
What is the optimum combination of Board of Directors?
Correct Answer
Managing Directors and Secretary
Your Answer
Executive and non executive Directors
Multiple Choice Single Answer
Question
If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Shorter notice for AGM
Private Limited Company
ROC
Books of Account
Form 23AA
Registered Office
Accounting Standards
National Advisory Committee
Form 23AA
True/False
Question
Wages includes any remuneration payable under any award or settlement between
the parties or order of court.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Present limit for giving details of employees in Directors' Report is :-
Correct Answer
Rs. 2 lac p.m.
Your Answer
Rs. 5 lac p.m.
Multiple Choice Multiple Answer
Question
What is the role of the audit committee?
Correct Answer
Review the annual financial statements , Recommending and appointment of
external auditors , Reviewing the company's financial and risk management policies
Your Answer
Review the annual financial statements , Recommending and appointment of
external auditors , Reviewing the company's financial and risk management policies
Multiple Choice Single Answer
Question
What has the national labour omission described about passing of the act?
Correct Answer
Landmark in the history of labour legislation in the country
Your Answer
Landmark in the history of labour legislation in the country
Select The Blank
Question
As per section ________ it is obligatory on every person responsible for payment.
Correct Answer
4
Your Answer
2
True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Only individuals can be appointed as directors of the company.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
FDI prohibited activities are :-
Correct Answer
Retail trading , Gambling & betting , Housing & real estate
Your Answer
Retail trading , Gambling & betting , Housing & real estate
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
No person can be appointed as an auditor of the company who is in full time
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Authorized dealer is required to avail license under the exim policy in force.
Correct Answer
True
Your Answer
True
Select The Blank
Question
As per section 5 in case of railways if the persons employed is less than ________
the wages shall be paid before the expiry of 7th day.
Correct Answer
1000
Your Answer
1000
Multiple Choice Single Answer
Question
As per section 3 who fixes the minimum rate of wages to be paid to the employees
?
Correct Answer
Appropriate government
Your Answer
Appropriate government
Multiple Choice Multiple Answer
Question
Remittance completely prohibited on :-
Correct Answer
Dividend balancing , Telephone expanses , Interest on funds
Your Answer
Dividend balancing , Telephone expanses , Interest on funds
True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True
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
True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary
General Meeting.
Correct Answer
False
Your Answer
True
True/False
Question
Wages includes any travelling allowance for travel concession.
Correct Answer
False
Your Answer
False

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
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
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
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
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
Multiple Choice Single Answer
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
Section 3 of wages act
Every employer responsible for payment to employed persons
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
Your 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
Your 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
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
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
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
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
Your Answer
Arvind mills ltd case
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
Your Answer
Articles of Association
Select The Blank
Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your 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
Your Answer
To ensure regular and timely payment of wages to employed persons
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Reduction of capital
Special Resolution
Special Resolution
Appointment of Managing Director
Ordinary Resolution
ROC
Accounting Standards
National Advisory Committee
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
Your 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
Your 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
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
Multiple Choice Single Answer
Question
When was the factories act passed?
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since already paid on
original authorised capital.
Correct Answer
False
Your Answer
False

True/False
Question A probationer is an employee and as such is not entitled to business.
Correct Answer False
Your Answer True
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Managers
Multiple Choice Multiple Answer
Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate
Multiple Choice Single Answer
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 Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
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 loans & advances made by the company have been shown as deposits ,
Whether personal expenses have been charged to revenue account
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Annually
Multiple Choice Single Answer
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
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
True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Your Answer Dividend balancing , Telephone expanses , Interest on funds
Match The Following
Question Correct Answer Your Answer
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
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.
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
Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Authority route
Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Your Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Multiple Choice Single Answer
Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02
Your Answer 0.02
True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Correct Answer False
Your Answer True
True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards
Your Answer Going concern , Accounting policies , Accounting standards
Multiple Choice Multiple Answer
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 1 , Form 5
True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Presentation as per Act
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated
Your Answer Vacant
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 Government company
True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False
Your Answer False
Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD
Your Answer NCD
Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association
Your Answer Private limited company , Unlimited company , Charitable association
Multiple Choice Single Answer
Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty
Your Answer Bank charges
Multiple Choice Single Answer
Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results
Your Answer Quarterly results
Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI
Your Answer SEBI
True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True
Your Answer False
True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer False
Your Answer False
Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days
Your Answer 30 days
Select The Blank
Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding
Your Answer Binding
Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Banks , Financial Institutions , Debenture Holders
Select The Blank
Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Current liabilities
Match The Following
Question Correct Answer Your Answer
Capital Account Guarantee by a person resident Capital Account
Living Expenses Current Account Personal Account
Deposits Capital Account Current Account
The Adjudicating Authority Power of Classification Accounting Authority
Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control
Your Answer Control
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 Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right
Your Answer Preferential right
Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company
Your Answer Directors of company
Multiple Choice Single Answer
Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India
Your Answer Reserve Bank of India
Multiple Choice Single Answer
Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years
Your Answer Five years
Multiple Choice Multiple Answer
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

True/False
Question A probationer is an employee and as such is not entitled to business.
Correct Answer False
Your Answer True
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Managers
Multiple Choice Multiple Answer
Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate
Multiple Choice Single Answer
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 Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
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 loans & advances made by the company have been shown as deposits ,
Whether personal expenses have been charged to revenue account
Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Annually
Multiple Choice Single Answer
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
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
True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Your Answer Dividend balancing , Telephone expanses , Interest on funds
Match The Following
Question Correct Answer Your Answer
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
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.
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
Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Authority route
Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Your Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Multiple Choice Single Answer
Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02
Your Answer 0.02
True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Correct Answer False
Your Answer True
True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards
Your Answer Going concern , Accounting policies , Accounting standards
Multiple Choice Multiple Answer
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 1 , Form 5
True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Presentation as per Act
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated
Your Answer Vacant
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 Government company
True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False
Your Answer False
Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD
Your Answer NCD
Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association
Your Answer Private limited company , Unlimited company , Charitable association
Multiple Choice Single Answer
Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty
Your Answer Bank charges
Multiple Choice Single Answer
Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results
Your Answer Quarterly results
Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI
Your Answer SEBI
True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True
Your Answer False
True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer False
Your Answer False
Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days
Your Answer 30 days
Select The Blank
Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding
Your Answer Binding
Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Banks , Financial Institutions , Debenture Holders
Select The Blank
Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Current liabilities
Match The Following
Question Correct Answer Your Answer
Capital Account Guarantee by a person resident Capital Account
Living Expenses Current Account Personal Account
Deposits Capital Account Current Account
The Adjudicating Authority Power of Classification Accounting Authority
Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control
Your Answer Control
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 Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right
Your Answer Preferential right
Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company
Your Answer Directors of company
Multiple Choice Single Answer
Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India
Your Answer Reserve Bank of India
Multiple Choice Single Answer
Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years
Your Answer Five years
Multiple Choice Multiple Answer
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 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
Multiple Choice Single Answer
Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Insolvent
Multiple Choice Single Answer
Question Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 2500
True/False
Question Authorized dealer is required to avail license under the exim
policy in force.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The earlier "Fast Track" investments route has been replaced
by?
Correct Answer Automatic
Your Answer Automatic
Multiple Choice Single Answer
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
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
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 International labour organisation
Your Answer International labour organisation
Multiple Choice Multiple 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
Multiple Choice Multiple Answer
Question What do youmean 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 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 Single 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
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 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 National Advisory
Committee
Appointment of Managing
Director
Ordinary Resolution Board of Directors
Accounting Standards National Advisory
Committee
Special Resolution
True/False
Question A General Meeting may also be called by giving shorter notice
than 21 days.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the company ,
Amounts transferred to Reserves
Your Answer Dividend recommended , Taxes paid , Financial position of the
company
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
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
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question Companies Act presently implemented and adhered by
companies is :-
Correct Answer Companies Act, 1956
Your Answer Companies Act, 1956
Multiple Choice Multiple Answer
Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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 Power to make calls on shares , Power to issue debentures ,
Power to borrow money
Multiple Choice Single Answer
Question The period for realization for export of goods from the date of
shipment is at :-
Correct Answer Six month
Your Answer Six month
Multiple Choice Single Answer
Question Accounting Standards are issued by :-
Correct Answer Institute of Chartered Accountants
Your Answer Institute of Chartered Accountants
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 , Settlement between the parties
or order of court , Overtime
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
Your Answer Ensure payment of wages to the employed , Prevent
unauthorised deductions , Prevent arbitrary fines
Select The Blank
Question ________means all remuneration expressed in terms of money.
Correct Answer Wages
Your Answer Wages
Multiple Choice Multiple Answer
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
Every employer
responsible for payment to
employed persons
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
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
Multiple Choice Multiple Answer
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 A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
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

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