Competitive Exams: Commerce MCQs (Practice-Test 7 of 99)

  1. O & M can be strengthened chiefly through

    1. wage incentive plans

    2. good store-keeping

    3. improved office layout

    4. better work measurement

  2. Informal organization is as necessary as formal organization chiefly for the reason that it

    1. resists change

    2. builds morale

    3. has close association with decision making

    4. fulfils separate goals and standards

  3. After the commencement of the Companies Act, 1956 no person, save as otherwise provided in Section 276, shall hold office as director at the same time in more than

    1. 5 Companies

    2. 10 Companies

    3. 15 Companies

    4. 20 Companies

  4. Consider the following statements:

    1. Board of Directors appoints the first auditor of the company.

    2. A shareholder of a company can become member of the Board.

    3. Board of Directors can act as auditors.

    4. Director of one company can be appointed as Director to any number of companies.

    Which of the above statements are correct?

    1. 1, 2 and 3

    2. 1 and 3

    3. 1 and 2

    4. 2, 3 and 4

  5. Match List I with List II and select the correct answer

    List-I List-II
    1. Company Secretary

    2. Director

    3. Managing Director

    4. Internal Auditor

    1. In charge of statutory and administrative duties

    2. Reports to the shareholders

    3. Reports to the Management

    4. Trustee of Company's assets

    5. Reports to the Board of Directors

    • A
    • B
    • C
    • D
      • 1
      • 5
      • 2
      • 3
      • 3
      • 5
      • 2
      • 1
      • 1
      • 4
      • 5
      • 3
      • 3
      • 4
      • 5
      • 1
  6. Consider the following statements

    1. The minimum number of directors in a public company is three.

    2. The first directors are appointed by the first general meeting.

    3. An official director appointed by the government in a public company is required to possess qualification shares within 2 months of his appointment.

    4. The Company Secretary is appointed by Board of Directors.

    Which of the above statements are correct?

    1. 1 and 2

    2. 1 and 4

    3. 2 and 3

    4. 2 and 4

  7. A director having direct or indirect, interest or concern in a transaction of the company, has to disclose his interest in a meeting to the

    1. Board of Directors

    2. Shareholders

    3. Company Secretary

    4. Registrar of Companies

  8. Which one of the following reports should have ‘responsibility statement’ under the Companies Act, 1956?

    1. Auditor's report

    2. Board of Director's report

    3. Company Secretary's report

    4. Audit Committee's report

  9. Which ore of the following reports deals with ‘Corporate governance’

    1. Sabhanayagam Report

    2. Kumaramangalam Birla Report

    3. Narasimhan Report

    4. L C Gupta Report

  10. Minimum paid-up capital required to incorporate a public-limited company is

    1. Rs. 20, 000

    2. Rs. 1, 00, 000

    3. Rs. 5, 00, 000

    4. Rs. 10, 00, 000

  11. As per the Companies Act, 1956, who among the following must be included in the Audit Committee constituted in a company?

    1. Managing Director and whole-time Director

    2. Auditor and Internal Auditor

    3. Company Secretary V

    4. Directors who are not whole-time

    Managing Director

  12. Match List I (Concept relating to company meetings) with List II (Meaning) and select the correct answer:

    List-I List-II
    1. Proxy

    2. Quorum

    3. Statutory Meeting

    4. Annual General Meeting

    1. Minimum number of members required to be present

    2. Getting the right to vote only

    3. Conducted once in a year

    4. Once in the lift time of a company

    5. Meeting of a particular group of shareholders

    • A
    • B
    • C
    • D
      • 5
      • 3
      • 2
      • 1
      • 2
      • 1
      • 4
      • 3
      • 5
      • 1
      • 2
      • 3
      • 2
      • 3
      • 4
      • 1
  13. Match List I (Company having paid-up capital more than) with list II (Must have/be a) and select the correct answer using the codes given below:

    List-I List-II
    1. One lakh rupees

    2. Ten lakh rupees

    3. Fifty lakh rupees

    4. Five crore rupees

    1. Whole-time Director

    2. Secretarial compliance report

    3. Qualified Company Secretary

    4. Public limited Company

    5. Private limited Company

    • A
    • B
    • C
    • D
      • 5
      • 4
      • 3
      • 1
      • 3
      • 4
      • 1
      • 5
      • 5
      • 2
      • 3
      • 1
      • 3
      • 2
      • 1
      • 5
    • Assertion (A): The best way of reporting of social responsibility is to prepare a Value Added Statement (VAS) to show the income earned by the providers of capital, the employees and the government.
    • Reason (R): A business is accountable to the society since it makes use of community-owned assets such as roads, railways, communication and other infrastructural facilities and concessions provided by the state from the tax-payers money.
    1. Both A and Rare true and R is the correct explanation of A

    2. Both A and R are true but R is NOT the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The interest on borrowed funds can be capitalized upto the completion of fixed assets.
    • Reason (R): The completion of fixed assets has been possible only because of these funds.
    1. Both A and Rare true and R is the correct explanation of A

    2. Both A and R are true but R is NOT the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true