114.If the refunds are delayed by more than 10 days after this period. The directors become liable to repay the money with how much interest as per SEBI Guidelines. A. 0.1 B. 0.15 C. 0.2 D. None of these Answer: B 115.The term company is defined under which sec of the Act? A. Sec 3(1) B. Sec 4(2) C. Sec 2(4) D. Sec 1(3) Answer: B 116.Who is deemed to be a contributory in the event of an unregistered company being wound up? A. who is liable to pay debt of the company B. who is liable to pay liability of the company C. who is liable to pay expenses of winding up the company D. All of these Answer: D 117.In case of appointment of Directors ______ form is to be filed A. Form DIR-12 B. Form DIR-9 C. Form DIR-2 D. Form DIR-13 Answer: A 118.What is the maximum duration, at any one time be applied for closing the register of members or the register of debenture holders A. 7 days B. 15 days C. 30 days D. 45 days Answer: C 119. What registers are to be maintained by an company. A. Register of members B. Register of debenture-holders C. Register of any other security holders D. All of these Answer: D 120.An appeal is made to whom against stock exchange for refusing the permission of listing. ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 50 | Page
A. SAI B. NCLT C. MAT D. ROC Answer: A 121.Who fixes the remuneration of the auditor of a company? A. Chief Executive officer B. Chief Financial Officer C. Board D. SEBI Answer: C 122.How can a director be paid remuneration? A. monthly payment B. specified percentage of the net profits of the company C. partly by monthly payment and partly by specified percentage of the net profits of the company D. All of these Answer: D 123.Which of the following is not a statutory right? A. Right to transfer shares. B. Right to receive dividend when declared by the company. C. Right of dissident shareholders to apply to the court to have any variation of their rights cancelled. D. Right to claim damages under the general law for taking shares of a company on the faith of a misleading prospectus Answer: D 124.Which section of Companies Act 2013 prescribes accounting standards? A. 133 B. 134 C. 135 D. 136 Answer: A 125.If the company failed to refund application money within 130 days from the date of issue of prospectus on non-receipt of minimum subscription who will be personally liable. A. Company B. Directors C. Shareholders D. None of these ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 51 | Page
Answer: B 126.What is the time frame from the date of incorporation of the company that the Registrar has reasonable cause to believe that the company is not carrying on any business or operations? A. 60 B. 120 C. 180 D. 240 Answer: C 127.What basis is taken for retirement of directors if two directors had been appointed on same day? A. As per their experience B. Any agreement among themselves C. Board determines D. SEBI Answer: B 128.Allotment of shares or debentures must be made after getting ____________ subscription against entire public issue as per SEBI guidelines. A. 0.8 B. 0.9 C. 1.0 D. None of these Answer: B 129.Within how many days prospectus or statement in lieu of prospectus should file with ROC _____________. A. 30 Days B. 40 Days C. 20 Days D. 50 Days Answer: A 130.If the company has not received permission for listing from stock exchange and repayment of amount delayed by more than 8 days the minimum interest should be paid is A. 0.04 B. 0.02 C. 0.08 D. None of these Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 52 | Page
131.Transfer of shares in the partnership firm is A. Restricted B. Freely transferable C. Prohibited D. None of these Answer: A 132.Private company can allot shares without receiving minimum subscription. A. True B. False Answer: A 133.The companies which are formed under special Act. Those companies are called as A. Chartered companies B. Statutory companies C. Registered companies D. None of these Answer: B 134.Maximum number of persons in case of partnership banking business __________. A. 10 Members B. 20 Members C. 30 Members D. 5 Members Answer: A 135.Every Company needs company secretary. So in the case of sec.25 companies the same is the case. A. True B. False Answer: B 136.__________ are the prospectus issued instead of full prospectus A. Abridged B. Statement in lieu C. Shelf D. Red herring Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 53 | Page
137.Validity period of information memorandum is _______. A. 1 Year B. 2 Years C. 3 Years D. 4 Years Answer: A 138.Generally partnership firm liability is _____________. A. Limited B. Unlimited C. Can be limited or unlimited D. None of these Answer: B 139.Proxies can’t be appointed in case of company: A. Limited by guarantee B. Listed company C. Company not having share capital D. None Answer: C 140.A copy of the minutes of meetings of the Board of Directors shall be furnished to every director within __________ Days of the date of meeting. A. 7 Days B. 14 Days C. 21 Days D. 40 Days Answer: B 141.The notice of Extra ordinary general meeting shall be sent to members at least ____________ before the date of meeting: A. 28 Days B. 21 Days C. 40 Days D. 50 Days Answer: B 142.Who will be preside as chairman at every general meeting of the company? A. Registrar B. Officer of the company ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 54 | Page
C. Chairman of AGM D. Chairman of BOD Answer: D 143.In case continuing default to further fine this may extend to _________ for every day after the first during which default continues. A. 2000 B. 3000 C. 5000 D. 10000 Answer: C 144.In case of poll; Vote is casted against A. Debentures B. Securities C. Shares D. None Answer: C 145.The notice of AGM, in case of its being dispatched in normal course, shall also be published at least in one issue of: A. Daily newspaper English B. Daily newspaper Urdu C. Both D. None Answer: C 146.What does Section 148 of Companies Act, 2013 enlists A. Accounting standards B. The items of cost C. Various charges D. Financial statement Answer: B 147.What is the duration to file the consent of a newly nominated director? A. 7 Days B. 10 Days C. 15 Days D. 30 Days Answer: D ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 55 | Page
148.What is the duration after which the unpaid dividend is transferred to Investor Education and Protection Fund Account A. 2 Years B. 3 Years C. 5 Years D. 7 Years Answer: D 149. Which original certificate if lost results in obtaining duplicate certificate? A. Dividend Warrant B. Share warrant C. Share certificate D. None of these Answer: C 150. What the name of special account in which unclaimed dividend is deposited? A. Unpaid account B. Unpaid dividend account C. Dividend account D. None of these Answer: B 151. What is the time duration from the date of the declaration, with in which shareholder can claim the declared dividend A. 7 Days B. 15 Days C. 30 Days D. 45 Days Answer: C 152. What is the time duration after the expiry of dividend claim time span by shareholder; does the company shall transfer the total amount of dividend which remains unpaid or unclaimed to a special account? A. 7 Days B. 15 Days C. 30 Days D. 45 Days Answer: A 153. Who gives extension of time limit for issue of debenture certificate? A. Board of Directors B. DCA ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 56 | Page
C. NCLT D. ROC Answer: C 157. Any receipt of money by way of deposit or loan in any other form by a company? A. Loan B. Deposit C. Security D. None of the above Answer: B 158. Following companies can accept deposits from the public A. Banking Companies B. NBFC C. Eligible Companies – i.e, Public company with net worth of Rs. 100 crore or turnover of Rs.500 crore D. All of the above Answer: C 159. Deposits cannot be for less than 6 months or more than 36 months A. True B. False Answer: A 160. Deposits amount cannot exceed 10% of the aggregate paid up share capital and free reserve of the company A. True B. False Answer: A 161. The amount to remain in Deposit Repayment Reserve shall not fall below A. 10% B. 15% C. 25% D. None of the above Answer: C 162. Which date is referred as ending date for financial year? A. 31st day of March B. 31st day of Jan C. 01st day of March D. 01st day of Jan Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 57 | Page
163. Who recommends accounting standards to central government? A. NSE B. ICAI C. SEBI D. Ministry of Finance Answer: B 164. What is attached to the share warrant? A. Warrant B. Dividend coupon C. Certificates D. None of the above Answer: B 165. Which instrument has coupons attached with it? A. Share Warrant B. Share Certificate C. Debentures D. Deposits Answer: A 166. What is the minimum voting power needed to raise an objection to the compromiser or arrangement? A. 0.25 B. 0.1 C. 0.05 D. 0.01 Answer: B 167. Which section of Companies Act, 2013 focus on constituting the National Company Law Appellate Tribunal? A. 445 B. 415 C. 408 D. 400 Answer: C 168. What is the maximum with in which a notice on compromise or arrangement is to be sent to a Registrar? A. 60 Days B. 45 Days C. 30 Days D. 15 Days Answer: C ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 58 | Page
169. What amount of representation of the creditors , or class of creditors is needed to agree to any compromise or arrangement A. 0.75 B. 0.5 C. 0.45 D. 0.25 Answer: A 170.Which of the following may be a regulator during compromise or arrangement made by a company A. RBI B. SEBI C. CCI D. All of these Answer: D 171.Company will have fundamental rights A. True B. False Answer: B 172.X, is a Director of X Company and X is also a director of Y Company this means X Co. and Y both are same A. True B. False Answer: B 173.Company’s owners are shareholders, therefore the company property belongs to the share holders A. True B. False Answer: B 174.Members of a company can enter contract with the company A. True B. False Answer: A 175.ABC private company had reduced to a single member and continued business more than 6 months. The company liability will be A. Limited B. Unlimited C. Can be limited or unlimited D. None of the above Answer: B ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 59 | Page
176.Minimum number of members in case of private company is ___________. A. 1 member B. 2 members C. 3 members D. 7 members Answer: B 177.In case Partnership firm, audit is _____________. A. Compulsory B. Optional C. None of these D. False Answer: B 178.When a partner given a guarantee by the other partner, loss on such guarantee will be borne by A. Partnership firm B. All the other partners C. Partners who gave the guarantee D. Partner with highest profit sharing ratio Answer: C 179.Central Government permission is required in case of _________ conversion ______________. A. Private to public B. Public to private C. Both of these D. None of these Answer: B 180.A Company is named as Govt. company if it holds ______________% of paid up share capital A. More than 30 B. More than 40 C. More than 50 D. None of these Answer: C 181.Which term refers to the collective body of the directors of the company? A. Chief Financial Officer B. Chief Executive Officer C. Board D. Liquidator Answer: C ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 60 | Page
182.What is the minimum paid up capital for a private company? A. 50000 B. 100000 C. 500000 D. 1000000 Answer: B 183.The doctrine of indoor management is an ____________ to the doctrine of constructive notice. A. Exception B. Extension C. Alternative D. None of these Answer: B 184.What balance (debit balance or credit balance) does a partner charge, when he does drawings from the current account? A. Debit balance B. Credit balance C. Either of these D. None of these Answer: A 185.How many members should sign MOA in case of public company _____________? A. 1 member B. 3 members C. 5 members D. 7 members Answer: D 186.Interest on capital will be paid to the partners if provided for in the agreement but only from A. Current profits B. Reserves C. Accumulated profits D. Goodwill Answer: A 187.What is the maximum duration with in which a notice of auditor’s appointment is filled with the Registrar? ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 61 | Page
A. 7 Days B. 10 Days C. 15 Days D. 30 Days Answer: C 188. Audit of a private company will not be counted for the limit of audits A. True B. False Answer: B 189.After which board meeting should company appoint an auditor A. First B. Second C. Third D. Depend upon the line of business of the company Answer: A 190.Audit of a public company will be counted for the limit of audits A. True B. False Answer: A 191.What is the maximum duration till which auditors are appointed? A. 2 years B. 5 years C. 6 years D. 10 years Answer: B 192.What is the maximum imprisonment term punishable for any person who is found to be guilty of fraud? A. 5 years B. 7 years C. 8 years D. 10 years Answer: D 193.Statutory meeting must be held in case of a public company A. True B. False Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 62 | Page
194.How many minimum number of meetings of board of directors are to be held, every year A. 2.0 B. 3.0 C. 4.0 D. 5.0 Answer: C 195.For every special resolution passed the form attached should be A. Form no.32 B. Form no.18 C. Form no.23 D. None of these Answer: C 196.What is the minimum notice period given in writing to every director at his address registered with the company for meeting of the board A. 7 Days B. 10 Days C. 15 Days D. 30 Days Answer: A 197.Statutory meeting must be held in case of private company A. True B. False Answer: B 198.A Company hold an AGM on public holiday A. True B. False Answer: B 199.Who is an independent director in relation to a company A. Person of integrity B. Possesses relevant expertise C. Not a promoter of the company or its holding D. All of the above Answer: D ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 63 | Page
200.Liability under ______sec. may be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors A. Sec.540 B. Sec.541 C. Sec.542 D. Sec.543 Answer: C 201.Private company can start its business immediately after the issue of: A. Certificate of commencement of Business B. Certificate of Incorporation C. Both of these D. None of these Answer: B 202.Is rent paid to a partner is appropriation of profit A. Yes B. No C. If partner's contribution as capital is maximum D. If partner is a working partner Answer: B 203.Minimum subscription should be received with in ____________. A. 120 Days B. 125 Days C. 130 Days D. 135 Days Answer: A 204.Who cannot be appointed as liquidator? A. One or more person B. CA firm C. Corporate body of professionals D. Body corporate Answer: D 205.Return on Proprietors funds is also known as : A. Return on net worth B. Return on Shareholders fund C. Return on Share holders Investment D. All of the above Answer-D ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 64 | Page
206.The objective of the audit of a company is to: A. Attest the credibility of the company‘s accounts. B. Monitoring the performance of Board C. Giving Information to Govt. D. Advising the Management Answer: A 207.The National Financial Reporting Authority (NFRA) is an Authority for providing for matters relating to accounting and auditing standards under the Companies Act, 2013 - A. True C. False Answer: A 208. The auditor appointed may be removed from his office before the expiry of his term only by a special resolution of the company? A. Can be removed with the approval of Central Government. B. Can be removed after extending the opportunity to hear. C. Both (A) and (B) D. None of the above Answer: C 209. A person shall be eligible for appointment as an auditor of a company only if he is a Chartered Accountant -- A. True. B. False Answer: A 210. The remuneration of the auditor of a company shall be fixed ordinarily in its general meeting? A. True. B. False Answer: A 211. Merger of two or more companies involved in different stages of production or distribution of the same product is referred to: A. Vertical B. Horizontal C. Cross D. Triangle Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 65 | Page
212. Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of Transferor Company are taken over by the transferee company. B. Business of Transferor Company is intended to be carried on by the transferee company. C. Purchase consideration must be paid by the transferee company. D. All of the above Answer: D 213. Economies of scale‘ arises from operating synergy is Merger & Acquisitions A. True B. False Answer: A 214. In case of oppression the member has suffered in the capacity as a member of the company – A. True B. False C. Answer: A 215. Which of the following are commonly cited reasons for M&As? A. Synergy B. Market power C. Strategic realignment D. All of the above Answer: D 216. There must be at least one women director on the Board of every listed company and every other public company having – A. Paid up share capital of Rs.100 Crores or more B. Turnover of Rs.300 Crores or more C. Both (A) and (B) D. Either paid up share capital of Rs.100 Crores or more or Turnover of Rs.300 Crores or more Answer: D ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 66 | Page
217. The Companies Act, 2013 codifies various duties on directors. Which of the following is not codified by the Act? A. Deciding the company’s future goals and priorities B. To attend the minimum of two Board meetings annually. C. Reporting back to the stakeholders at the Annual General Meeting. D. Doing effective risk management assessment Answer: B 218. Shareholders agreement contains a clause that in case of a tie, the Chairman of the Board shall not have a second or casting voting. But the articles of association provide that the Chairman of the Board shall enjoy casting vote in the event of a tie. The chairman of the Board casts his second vote in case of the tie. Is the resolution passed by virtue of use of second vote valid? A. No, as the shareholder‘s agreement provided to the contrary B. Yes, as the resolution passed by virtue of use of second vote cannot be invalidated on the ground that the shareholder‘s agreement provided to the contrary. Answer: B 219. Mr.X, director of the company delegated the control of his power to Mr. Y. Mr. Y misappropriated the company‘s money. Can Mr.X be held liable for the act committed by Mr. Y? A. Yes, as Mr. X as director of the company cannot be absolved of his duties. B. No Answer: A 220. The consequence of non-compliance of any of the codified duties of directors is – A. Directors may be liable for fraud under the Companies Act, 2013 B. Directors may be liable for Civil action C. Directors may be liable for Criminal action D. All of the above Answer: D ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 67 | Page
221. In the Board meeting a loan proposal in which the nominee director is interested is being discussed. Which of the action has to be taken by the nominee director? A. He has to rescue himself from such a decision if there is conflict of interest B. Can Participate C. Can participate and vote D. Non of the above Answer: A 222. Under class action suit the claim of damages or compensation or any suitable action can be demanded against – A. Company or its directors B. Auditors including auditing firm C. Expert or advisor or consultant D. All of the above Answer: D 223. Application for withdrawal under 241(Application to Tribunal for Relief in Cases of Oppression, etc) shall be filed in form as prescribed by – A. SEBI B. FEMA C. Ministry of Corporate Affairs D. None of the above Answer: C 224. The company once proposed to appoint a Criminal for abducting shareholders asking for dividend. 75% directors agreed to this rest 25% disagreed to the same. Whose vote shall prevail? A. Minority shall prevail B. Majority shall prevail C.Void D. None of the above Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 68 | Page
225. Is it incumbent upon the director to report to Registrar of Companies on resigning from Directorship? A. Yes, it is mandatory under Companies Act, 2013 B. No, it is not mandatory under Companies Act, 2013 Answer: A 226. Mr.S, director who is not managing the day to day affairs of the company remained silent on an agenda item being discussed and voted which was contrary to the provisions of the Companies Act, 2013. Will Mr. S be held liable? A. Yes, as he will be included in the definition of officer in default since he was aware of such contravention by virtue of his participation in the meeting without objecting to the same. B. No Answer: A 227. Mr.B, director of XYZ Limited was absent from a board meeting where an agenda in contravention of Companies Act, 2013 was discussed. He gained knowledge of the contravention through the minutes of proceedings circulated to him but did not raise any objection. Will Mr. B be treated as officer in default? A. Yes, He will be treated as officer in default as he received minutes of the proceedings and did not raise any objection to the said item. B. No, as he absented from board meeting Answer: A 228. Mr.Ram furnishes false information and he is aware of the document filed with Registrar in relation to the registration of a company. Whether he shall be liable for his action? A. Yes B. No C.Either (A) or (B) D. May or may not Answer: A 229. Any person, who is found to be guilty of corporate fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to________ years. ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 69 | Page
A. 5 Years B. 10 Years C.20 Years D. 2 Years Answer: B 230. According to 134(3)(p) of the Companies Act,2013 companies need not prepare a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors. A. Public B. Private C.Both (A) or (B) D. Either (A) or (B) Answer: B 231. A woman Director sits on the board of Company XYZ. Can she evaluate the entire board? A. Yes, except herself B. No Answer: A 232. The performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluate. A. True B. False Answer: A 233. Apart from Directors………………needs to be analyzed yearly as performance evaluation of public listed companies. A. Entire Board and its sub committees B. Only Board C.Only Sub committees D. None of the above Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 70 | Page
234. According to section 178(2) read with schedule IV of the companies Act, 2013: The __________ Committee shall identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal and shall carry out evaluation of every director‘s performance. A. Nomination and Remuneration – Non Executive Directors B. Corporate Governance Committee C. Risk management committee D. CSR Committee Answer: A 235. Section 134(3)(p) of the Companies Act, 2013, provides for the evaluation of the following: A. Board of its own performance B. Board committees for their performance C.Performance of ID‘s D. All of the above Answer: D 236. The SFIO of multi-disciplinary organization under Ministry of Corporate Affairs, consisting of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market, and taxation for detecting and prosecuting or recommending for prosecution white-collar crimes/frauds. A. True B. False Answer: A 237. Offence punishable with fine only are Compoundable by NCLT and Compoundable by Regional Director or Officer authorized by Central Govt. C.True D. False Answer: A 238. ----------- shall lay down a code of conduct for all members of board of directors and senior management of the listed entity. A. Board of Directors ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 71 | Page
B. Share Holders C. Auditors D. ROC Answer: A 239. At least one independent director on the board of directors of the listed company shall be a director on the board of directors of an --. A. Unlisted material subsidiary B. Unlisted subsidiary C.listed subsidiary D. All of the above Answer: D 240. The minutes of the meetings of the board of directors of the u n l i st e d S u b s i d ia r y shall be placed at the meeting of the board of directors of the listed entity. A. True B. False Answer: A 241. Remuneration committee is made up of A. Non-executive directors. B. Executive Directors C.Senior Management D. None of the above Answer: A 242. Audit Committee shall act in accordance with the terms of reference to be specified by – A. Board of Directors B. Share Holders C. Auditors D. ROC Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 72 | Page
243. Which of the following are known as Board Committees? A. Audit Committee B. Remuneration committee C. Nomination committee D. All of the above Answer: D 244. Sec.135 of the Companies Act, 2013 lays down constitution, composition and the roles and responsibilities of the Corporate Social Responsibility Committee A. Agree B. Disagree Answer: A 245. ------------Secretarial audit would be applicable to a Private company which is a subsidiary of a public company, and which falls under the prescribed class of companies. A. Yes B. No Answer: A 246. ----------Secretarial audit is applicable to which of the following kinds of companies? A. Every listed company and every public company having a paid-up share capital of fifty crore rupees or more or every public company having a turnover of two hundred fifty crore rupees or more B. Private Company C.LLP with 100 crores turnover D. None of the Above. Answer: A 247. The Secretarial auditor is required to be appointed by the Board Resolution passed by the Board of Director of the company in their Board Meeting. ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 73 | Page
A. True B. False Answer: A 248. The nature of fraud committed in the case WorldCom was of ------------ C.Accounting Fraud A. Technical Fraud B. Mis Management of Company C.None of the above. Answer: A Note: WorldCam Case in Brief: · It is a case of Looting by CEO evidence, improper share deals, Tampering and Falsifying business records · Not Correct reporting of facts and figures. · Senior Accounting Professional acted as a whistle-blower in the company 249. Which of the committee was not part of the corporate governance operating system at WorldCom? A. Remuneration Committee B. Stakeholders Committee C.CSR Committee D. Audit Committee Answer: B 250. The case helps us to learn that the objective of corporate governance framework is to – A. Create more ethics standards by which corporate professionals must operate B. Change the cultural ethics C. Increase the workload for accounting professional D. How the company should have a professional accountability and to upload the integrity to society Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 74 | Page
251. The corporate governance structure of a company reflects the individual companies – A. Cultural and economic system, B. Legal and business system, C.Social and regulatory system D. All of the above Answer: D 252. The case explains that organization‘s appropriate tone at the top promoting ethical conduct is an example of _. A. Ethical incentives B. Ethical behavior C.Ethics sensitivity D. Consequentialist Answer: B 253. The chairperson of the board of directors and CEO should be leaders with – A. Vision and problem solving skills B. the ability to motivate C. Business acumen D. All of the above Answer: D 254. The case of Hydro One focuses on – A. Enterprise Risk Management B. Enterprise resource management C.Both (A) and (B) D. Either (A) or (B) Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 75 | Page
255. ERM stands for – A. Enterprise Risk Management B. Enterprise resource management C.Exchange Rate Mechanism D. None of the above Answer: A 256. Maruti Suzuki‘s governance practices came under significant cloud when its board approved a transaction0020 with Suzuki Motor Gujarat Pvt. Ltd, a wholly owned subsidiary of Suzuki Japan A. True B. False Answer: A 257. The Board of Directors of Maruti Suzuki consisted of 12 directors, out of which 4 were independent directors. Did it satisfy the requirement as per Companies Act, 2013? A. Yes B. No Answer: A 258. What is the minimum number of Independent Directors required in a Listed Public Company as per Section 149(4)? A. Minimum 1/3rd of total Directors C.Minimum 1/5th of total Directors D. Either (A) or (B) E. None of the above Answer: A 259. Members and depositors have filed class action suits for the same cause of action differently. Will both the application be accepted? A. No, only a single class action suit is allowed for a same cause of action B. Yes Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 76 | Page
260. Which committee has failed in WorldCom, Enron & Satyam A. Shareholders Grievance Committee. B. Corporate Compliance Committee C.Corporate Governance Committee D. Audit Committee Answer: D 261. Criteria for appointing woman director – A. Every listed company B. Every unlisted company C.Every other public company having paid up share capital of 100 Crores or more; or turnover of 300 Crores or more D. Every other public company having paid up share capital of 100 Crores or more; and turnover of 300 Crores or more I.A or C II. B and C III. A and C IV. A and D Answer: III 262. The independent directors of the company shall hold at least _______ meeting in a financial year. A. One B. Two C.Three D. Four Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 77 | Page
263. Which committee addresses the grievances of shareholders – A. Stakeholders relationship committee B. Administrative and Shareholders/Investors Grievance Committee C.Both (A) and (B) D. None of the above Answer: C 264. For calculating the quick ratio, inventory needs to be eliminated from current assets? A. Yes B. No Answer: A 265. Which company (Auditing Co.,) was devastated after Enron Scandal? A. Arthur Andersen LLP B. Ernst & Young C. Arthur Young D. Coopers & Lybrand Answer: A 266. Can a director have more than 1 DIN? A. Yes B. No Answer: B 267. Satyam computers win the Golden peacock award in which year? A. 2008 B. 2009 C.2007 D. 2005 Answer: A ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 78 | Page
268. Is Satyam computers considered as Indian Enron? A. Yes B. No Answer: A 269. As MD of the company eligible to act as MD in how many companies? A. 2 companies B. 6 companies C. 3 companies D. 1 company Answer: A **** Happy Learning & All the best **** ------------------------------------------------------------------------------------------------------------------------------------------ CA.Machar Rao Meenavalli , E-Mail: [email protected] 79 | Page
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