Online Proficiency Self-Assessment Test

Online Proficiency Self-Assessment Test practice questions, page 2 of 2, with answer review and explanations.

Question 6

Fill in the blank: A Private Company can accept deposits from its members not exceeding _____ of aggregate of its paid up share capital and free reserve.

  1. 20%
  2. 40%
  3. 50%
  4. 100%

Question 7

Dividend can be declared out of:

  1. Securities premium reserve
  2. Capital reserve
  3. General reserve
  4. All of the above

Question 8

Who can be appointed as an internal auditor?

  1. Chartered Accountants
  2. Cost Accountants
  3. Any professional
  4. All of the above

Question 9

The Board of Directors of ABC Ltd. fails to convene the Annual General Meeting for the year 2019. The members wish to convene the AGM, how they should proceed?

  1. Members has no authority to call AGM
  2. Any Member may approach the Competent Authority to call the AGM
  3. Members may call AGM and claim the expenditure from Company
  4. Members may call AGM at their own expenses

Question 10

In case of related party contracts or arrangements between two Government companies, prior approval of:

  1. Ministry of Corporate Affairs is required
  2. The shareholders is required
  3. The shareholders is not required
  4. None of the above