Tag: economic and non-economic activities

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Questions Related to economic and non-economic activities

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 of False:

A share warrant holder is the member of the company.

  1. True

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

This Statements is False , due to the following reasons:

(i) A share warrant is a document that gives the holder, the right to buy share at a fixed price at a given future date.

(ii) A member is a person whose name appears in the Register of Members. He may not necessarily be shareholder or a share warrant holder of the company.

(iii) A share warrant is a documents title of share. A person holding share warrant becomes the owner of the shares mentioned in the documents.

(iv) A share warrant  holder is a shareholder of the company. However he is not a member as name does not appear in the register of members.

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 of False:

A Managing Director is appointed for a period of 5 years.

  1. True

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

True.

A Managing Director is someone who is responsible for the daily operations of the company, organization or corporate division. 
As a  member of senior management, the managing director the managing director is also expected to keep a company solvent and to promote expansion and innovation within the industry. Managing Director is appointed for a period of five years.

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 of False:

An auditor prepares the books of account. 

  1. True

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

This Statements is False because of the following reasons:


(i) An auditor is a person who checks the accounts prepared by a company.
(ii) An auditors must be a chartered accountant in additions to his normal qualification.

(iii) The auditors has a right to correct and alter the accounts prepared by a company.
(iv) He has also a right to make alterations in the method of accounting.
(v) It is also his duty to state, whether or not the balance sheet and the profit and loss a/c indicate a true and fair view on the state of company affairs at the end of the financial year and are in agreement with the books of account and returns.
(vi) An accountant is in charge of the account and cash department of the company.
(vii) He has to maintain accurately the different book of account and registers as per the provisions in the Companies Act,1956.
(viii) he is answerable to the Board as regards the over all working of his department.
(ix) It is the accountant who prepares the books of account and not the auditor.

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 person who gives guarantee of raising minimum subscription is an underwriter.

  1. True

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

True, underwriting is an act of guarantee by an organisation or an individual for the sale of certain minimum amount of shares and debentures issued by a public limited company . Underwriting acts as a guarantee against danger of not receiving minimum subscription . In absence of underwriting agreement , there will always be uncertainty of subscription of shares . The guarantee of the underwriters removes the uncertainity. 

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 winding up proceedings of a company are conducted by the official liquidator.

  1. True

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

True.

An official liquidator is the person responsible for the winding up proceedings of a company at the time of liquidation of the company.

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 of False:

The Company Secretary is the member of the company.

  1. True

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

True. 

The company secretary is the member of the company as he is responsible for the efficiency administration of the company.
A company secretary is an important organ of a company who performs various ministerial and administrative duties. It is mandatory for every company having a paid up share capital of 5 crore or more to appoint full-time company secretary who is member of Institute of company secretaries of India.

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 chairman must be present within 15 minutes from the scheduled time of the meeting.

  1. True

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

The chairman should be present within the 15 minutes from the schedule of the meeting . in case of his absence a director should take the charge of the meeting present in the meeting shall choose one of their member to be chairperson of 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

Proxy must be a member of the company.

  1. True

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

This statements is a  False due to the following reasons:

(i) Proxy is a person appointed by a member of a public company to attend and vote on his behalf in the General Meeting.
(ii) The representative of an absent member is called proxy.
(iii)proxy is an instrument by which the appointment of a person is made i.e. proxy form atleast 48 hours before the meeting.
(iv) According to the provision of the Act a notice convening meeting must state that a member  entitled to attend and vote at a meeting is entitled to appoint a proxy to attend and vote instead of himself and proxy need not be a member.
(v) A proxy is not authorised to speak at meeting.
So a proxy need not be a member of the company.

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.