LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Legal Aspects of Finance_8)
Multiple Choice Single Answer
Question In which of the companies the bonus act is applicable?
Correct Answer More than 20 persons employed
Your Answer More than 20 persons employed
Select The Blank
Question Authorized dealer may freely open ________ and allow remittance for import of goods.
Correct Answer Letter of credit
Your Answer Letter of credit
Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Managers
Multiple Choice Single Answer
Question As per the provisions of Companies Act 1956, company can issue shares with :-
Correct Answer Differential voting rights
Your Answer Differential voting rights
Multiple Choice Single Answer
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
Multiple Choice Multiple Answer
Question What sums are deductible from gross profit under section 8?
Correct Answer Amount by way of depreciation , Employment rebate or investment allowance , Direct tax
Your Answer Amount by way of depreciation , Employment rebate or investment allowance , Direct tax
Multiple Choice Multiple Answer
Question What do you mean by wages?
Correct Answer Remuneration by way of salaries , Allowances , Expressed in terms of money
Your Answer Remuneration by way of salaries , Allowances , Expressed in terms of money
Multiple Choice Multiple Answer
Question What does an industrial or other establishment means as per section 2II?
Correct Answer Tramway service or motor transport service engaged carrying passengers of hire or reward ,
Dock wharf jetty , Plantation
True/False
Question A piece rated worker is entitled to bonus.
Correct Answer True
Multiple Choice Single Answer
Question s
Correct Answer In 1936
Your Answer In 1936
Multiple Choice Single Answer
Question No preference shares can be redeemed unless they are :-
Correct Answer Fully paid up
Your Answer Fully paid up
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Multiple Choice Single Answer
Question What do you mean by establishment on private sector?
Correct Answer Any establishment other than public sector
Your Answer Any establishment other than public sector
Multiple Choice Multiple Answer
Question Person permanently resident in India can return foreign exchange by :-
Correct Answer From AD , Travelling abroad , As a gift
Your Answer From AD , Travelling abroad , As a gift
True/False
Question Wages include any contribution paid by the employer to any pension fund or provided fund.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question ECB stands for :-
Correct Answer External Commercial Borrowings
Your Answer External Commercial Borrowings
Multiple Choice Single Answer
Question Deductions are authorized under which section?
Correct Answer Section 7(2)
Your Answer Section 7(2)
Select The Blank
Question Payment of ________ requires registration from RBI.
Correct Answer Royalty
Your Answer Royalty
Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person
Your Answer Includes legal representative of a deceased employed person
Multiple Choice Multiple Answer
Question Describe in brief what does the term wages include?
Correct Answer Remuneration under any award , Settlement between the parties or order of court , Overtime
Your Answer Remuneration under any award , Overtime , Travelling allowance
Multiple Choice Multiple Answer
Question How can you compute available surplus under section 5?
Correct Answer Gross profit less deductions , Direct tax calculated in accordance to provisions of section 7 in
respect to amount equal to gross profits of the employer for immediately preceding accounting year
True/False
Question Every company has to appoint an auditor to audit the accounts of the company and has to fix
remuneration to be paid to the auditor.
Correct Answer True
Multiple Choice Single Answer
Question FEMA Norms are compatible with :-
Correct Answer FERA
Your Answer FERA
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Match The Following
Question Correct Answer
Section 2(vi) Wages
Wages act 1936
Factories act 1948
Section 3 of wages act Every employer responsible for payment to employed persons
Select The Blank
Question The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer FERA
Your Answer FERA
Select The Blank
Question Articles of Association are rules for ________.
Correct Answer Internal management
Multiple Choice Multiple Answer
Question Section 24 provides bar to entertain suits by the court for recovery of wages in so far as the sum
claimed falls within which of the following categories :-
Correct Answer For which any application claim has already been presented , Direction of claim already
given' , Amount adjudged is not due to penalty
Multiple Choice Single Answer
Question What is the minimum salary under which the persons are covered in this act?
Correct Answer Less than Rs 1600
Select The Blank
Question ________ of the company has a right to take inspection of the books of account.
Correct Answer Any Director
True/False
Question The minimum wages act came in force on 15 march 1968
Correct Answer False
Select The Blank
Question The recommendations of audit committee relating to financial management shall be ________.
Correct Answer Binding
Multiple Choice Multiple Answer
Question Who are governed by the payment of wages act?
Correct Answer Employed persons , Salary less than 1600 per month
Your Answer Employed persons , Salary less than 1600 per month , Salary less than 1200 per month
Multiple Choice Single Answer
Question What do you mean by accounting year?
Correct Answer Day on which books of accounts of the corporation are closed
Your Answer Day on which books of accounts are open
True/False
Question Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer True
True/False
Question A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer True
Multiple Choice Single Answer
Question In which case did the Bombay high court observe the general purpose of the act?
Correct Answer Arvind mills ltd case
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Select The Blank
Question First AGM should be held within ________ from closure of financial year.
Correct Answer 9 months
Your Answer 18 months
Multiple Choice Single Answer
Question Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer Articles of Association
Select The Blank
Question Private Company prohibits public to ________ for any shares.
Correct Answer Subscribe
Multiple Choice Single Answer
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to employed persons
Match The Following
Question Correct Answer
Interim Dividend Board of Directors
Reduction of capital Special Resolution
Appointment of Managing Director Ordinary Resolution
Accounting Standards National Advisory Committee
Select The Blank
Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Resolution authorising alteration
Multiple Choice Multiple Answer
Question What is the main purpose of the payment of wages act 1936?
Correct Answer Ensure payment of wages to the employed , Prevent unauthorised deductions , Prevent
arbitrary fines
True/False
Question Company can not issue shares with differential voting/ dividend rights.
Correct Answer False
True/False
Question The Board has power to alter Articles of Association being internal document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What is the board procedure ?
Correct Answer Meeting to be held 4 times in a year , Should not be a gap of more than 4 months between 2
meetings , Minimum information should be made available
Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948
True/False
Question No additional fees is payable on increased authorised capital since already paid on original
authorised capital.
Correct Answer False
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