Tag: elements of business

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Questions Related to elements of business

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities
Proxy has no right to speak at the meeting.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This statement is True because of the following reasons :

(i) Proxy means a person appointed by a member of a public limited company to attend and vote on his behalf at the meeting. 
(ii) A proxy can be an outsider.
(iii) Under Section 176 of the Companies Act, 1956, a proxy cannot speak in-the meeting.
(iv) He is not allowed to take part in the discussion at the meeting. 
(v) He is appointed as a substitute of a member only for the purpose of voting on behalf of a member. 
(vi) A proxy can vote only when a poll is taken.
(vii) When a poll is taken, a proxy's vote is a valid vote. 
(viii) The information about the appointment of a proxy must be given to the company in a prescribed form 48 hours before the meeting. 
(ix) Hence, a proxy has no right to speak at the meeting.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities
The qualification share must be purchased by the Directors within ______months from his appointment.

  1. 2

  2. 4

  3. 8

  4. 6
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The article of association of a company may require the Directors of that company to hold some minimum shares at the time of his appointment within such a time limit as prescribed under section 270 of the companies act 1956. This minimum shares is known s 'Qualification Shares'. 

If the Directors doesn't hold that share qualification at the time of his appointment then he must require them within two months of his appointment.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities
An auditor is appointed for a period of _________.

  1. one year

  2. ten year

  3. five year

  4. two year
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After the incorporation of a company in the first annual general meeting an auditor must be appointed by the board of directors. the auditor will typically hold term till the conclusion of 5 years . The appointment of an auditor can also be made for a period of 1 year renewable at each annual general meeting. 

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities
The nominal value of qualification shares of directors must not exceed Rs._________.

  1. 2000

  2. 5000

  3. 1000

  4. 1500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Article of Association of a company may require the directors of the company to hold some minimum shares at the time of his appointment within certain time prescribed under the Companies Act. The nominal value of the qualification shares shall not exceed Rs 5000.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State the following statement are True or False.

Company Secretary need not attend the Board meeting.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

At the Board meeting, the Secretary has to obtain the signatures of the directors present in the Director's Attendance Book, ascertain the quorum and read the notice convening the meeting if so desired by the Chairman. Generally, he is requested lo read the minutes of the previous Board meeting. He has to obtain the signature of the Chairman in confirmation of the Minutes when approved. 

Thereafter, he is to assist the Chairman conducting the meeting, give him all necessary information and explanations as and when required, and take notes of the proceedings on the agenda paper including the terms of the resolutions passed.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State the following statement is True or False:

A director can remain absent from three consecutive board meetings without taking leave of absence from the board.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
This statement is False because of the following reasons:
(i) Under such circumstance , the director shall take 'leave of absence' from the board meeting.
(ii) As per section 283(9) of the Companies (Amendment)  Act,1988 states,"If a director remains absent for consecutive three board meeting without taking leave of absence from the board" his directorship gets terminated.
(iii) If a director has already remained absent at two consecutive board meeting without prior leave of absence from the board, he must obtain leave of absence from the board if he want to remain absent at the third board meeting also.
(iv) If he fails to take prior leave of absence for the third board meeting,his directorship gets automatically terminated.
(v) Hence, a director cannot remain absent from three consecutive board meeting without taking leave of absence from the board.
Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State the following statement are True or False.

Secretary gives information to the directors.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This statement is True,due to the following reasons:

(i) The Directors are elected representatives of the shareholders.

(ii) The Company Secretary is an executive officer of a Joint Stock Company.

(iii) The decision taken by the Board of Directors are implemented by the Secretary.

(iv) The Secretary acts as link between the Directors and other management personal and  staff.

(v) The Secretary provides assistance and guidance to the directors while discharging their duties and responsibilities.

(vi) The Secretary is responsible to inform the directors regarding Board Meeting .Hence he/she has to send notice,agenda and other information to all directors of the company.

(vii) The Secretary has to hold the meeting of directors from time to time as per the permissions of the Companies Act.

(viii) So,the Secretary has to perform various duties toward the directors of the  company.

(ix) The Secretary is therefore said to be the ears,eyes,hand and mouth - piece of he 'Board'.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State the following statement is True or False:

A director has to obtain qualification share within two months from the date of his appointment.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True , a director has to obtain qualification shares within two months from the date of his appointment . A share of common stock that a candidature of board  of directors is required to own is called qualification shares

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State the following statements is True or False:

The directors are representative of shareholders.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The board of directors should be a representation of both management and shareholder interests, and consist of both internal and external members.The executive board consists of insiders elected by employees and shareholders and is headed by the CEO or managing office