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Economic and non-economic activities - class-IX

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Standardization is a _________________.

  1. End process

  2. Goal oriented process

  3. Continuous process

  4. Static process


Correct Option: C
Explanation:

Standardization refers to the maintaining consistency and uniformity in the development of products and services in a business with respect to shape, size, color etc. Standardization is a continuous process as uniformity is maintained in the product or service till the time it is produced and supplied to the market. 

Secretary looks after the legal matter of any business organisation.

  1. True

  2. False


Correct Option: A
Explanation:

The secretary looks after the compliance with the rules and regulations in section 100 of companies act 1956. making statutory decision on the behalf of the company.  

In the old Roman empire, the person doing secretarial work was designated as scribe.

  1. True

  2. False


Correct Option: A
Explanation:

In the old Roman Empire a secretary was called 'Scribae', which means professional letter writer.

Secretary is one of the decision making authority.

  1. True

  2. False


Correct Option: A
Explanation:

Secretary is the administrative assistance in a firm . It is not the decision making authority in a business as the decision making authority is the president , board of directors etc.

Main job of a secretary is to maintain accounts.

  1. True

  2. False


Correct Option: B
Explanation:

Secretary job is not to maintain accounts.

The secretary is responsible for:
1. ensuring meetings are effectively organised and minuted
2. maintaining effective records & administration
3. Upholding the legal requirements of governing documents, charity law, company law, etc (where relevant)
4. communication & Correspondence

It is also their responsibility to register and communicate with shareholders, to ensure that dividends are paid and to maintain company records, such as lists of directors and shareholders, and annual accounts.



For any business organisation secretary is required.

  1. True

  2. False


Correct Option: A
Explanation:

Since there are many tasks or works to do in an organisation there is a requirement of administrative assistance for better functioning of the business. Therefore for every business organisation secretary is required.

There are different types of secretaries.

  1. True

  2. False


Correct Option: A
Explanation:

Depending on the extent of the responsibilities performed by the secretaries; they can be classified in many categories. The major categories of secretary are as follows:

  1. Private secretary
  2. Secretary of an association
  3. Secretary of embassy
  4. Secretary of a cooperative society
  5. Secretary of local body
  6. Secretary of Government department
  7. Company secretary.

An officer performing secretarial duties in Roman Empire was a Scribae.

  1. True

  2. False


Correct Option: A
Explanation:

In the old Roman Empire, a secretary was called 'Scribae', which means a professional letter writer.

A secretary is a trustworthy person of his organisation.

  1. True

  2. False


Correct Option: A
Explanation:

A secretary is a trustworthy person of his organisation as he holds some private information of the company.

Personal secretary is one of the type of secretary.

  1. True

  2. False


Correct Option: A
Explanation:

Depending on the extent of the responsibilities performed by the secretary they can be classified into categories:

  1. Personal secretary
  2. Secretary of embassy
  3. Secretary of a cooperative society
  4. Secretary of an association
  5. Secretary of local body
  6. Secretary of Government department
  7. Company secretary

An information which is not supposed to be disclosed by the secretary is secret and confidential.

  1. True

  2. False


Correct Option: A
Explanation:

A secretary is a custodian of secret, confidential and important information of his organization. Since he is closely connected with a top management, he participates in the decision making, policy framing, planning etc. All such important decisions regarding business activities are required to be maintained at top confidential. A secretary keeps all such confidential decisions and executes them at a right time.

A person doing secretarial work is an Ancient Indian History was known as Sachiva or Amatya.

  1. True

  2. False


Correct Option: A
Explanation:

In ancient Indian literature and historical documents the words like 'Amatya', 'Sachiva', and 'Chitnis' were used for a secretary. 

Originally, the term 'secretary' was mainly related with the person who does writing work for his master

A type of secretary appointed for an individual is personal secretary.

  1. True

  2. False


Correct Option: A
Explanation:

A personal secretary is an individual appointed to assist ta specific person with their daily business or tasks. 

The one who carries out administrative task is known as secretary.

  1. True

  2. False


Correct Option: A
Explanation:

Secretary is a person whose work consists of supporting management , clerical work and supports management with various skills . hence secretary is the one whose carries out administrative tasks.

______ means correctness or exactness or perfection in dealing with work.

  1. Adaptability

  2. Accuracy

  3. Tactfulness

  4. Education


Correct Option: B
Explanation:

Accuracy means correctness or exactness or perfection in dealing with work. Accuracy is of utmost importance to do any work.

A person employed by an individual is known as secretary.

  1. True

  2. False


Correct Option: A
Explanation:

A person employed by an individual for his personal assistance in his daily course of work is known as secretary.

Personal is an oldest type of secretary.

  1. True

  2. False


Correct Option: A
Explanation:

Personal assistance or secretary id the oldest type of secretary as old as human civilisation.

A secretary who is also known as personal assistant. 

  1. True

  2. False


Correct Option: A
Explanation:

True , a secretary is also known as personal assistanys as they assist the owners of the firm with their daily course of action and manage all their work .

State whether the following statement are True or False:
A group of elected/appointed representatives of shareholders who manage a company are called the board of directors.

  1. True

  2. False


Correct Option: A
Explanation:

True , board of directors are a group of elected officials who are representatives of the shareholders and take the management decisions on their behalf.

State  the following statement is True of False:

Directors are the owners of the company.

  1. True

  2. False


Correct Option: B
Explanation:

Stockholders own shares in companies, which makes them collective owners. They elect a board of directors to lead their companies and look out for their investment interests. Boards have a legal responsibility to govern on behalf of the stockholders and help companies prosper.

State  the following statement is True of False:

A share warrant holder is the member of the company.

  1. True

  2. False


Correct Option: B
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.

State  the following statement is True of False:

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

  1. True

  2. False


Correct Option: A
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.

State  the following statement is True of False:

An auditor prepares the books of account. 

  1. True

  2. False


Correct Option: B
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.

State the following statement is True or False:
A person who gives guarantee of raising minimum subscription is an underwriter.

  1. True

  2. False


Correct Option: A
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. 

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

  1. True

  2. False


Correct Option: A
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.

State  the following statement is True of False:

The Company Secretary is the member of the company.

  1. True

  2. False


Correct Option: A
Explanation:

True. 

The company secretary is the member of the company as he is responsible for the efficiency administration of the company.
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.

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

  2. False


Correct Option: A
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

Proxy must be a member of the company.

  1. True

  2. False


Correct Option: B
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.

Proxy has no right to speak at the meeting.
  1. True

  2. False


Correct Option: A
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.

The qualification share must be purchased by the Directors within ______months from his appointment.
  1. 2

  2. 4

  3. 8

  4. 6


Correct Option: A
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.

An auditor is appointed for a period of _________.
  1. one year

  2. ten year

  3. five year

  4. two year


Correct Option: A
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. 

The nominal value of qualification shares of directors must not exceed Rs._________.
  1. 2000

  2. 5000

  3. 1000

  4. 1500


Correct Option: B
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.

State the following statement are True or False.

Company Secretary need not attend the Board meeting.

  1. True

  2. False


Correct Option: B
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.

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


Correct Option: B
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.

State the following statement are True or False.

Secretary gives information to the directors.

  1. True

  2. False


Correct Option: A
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'.

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


Correct Option: A
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

State the following statements is True or False:

The directors are representative of shareholders.

  1. True

  2. False


Correct Option: A
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

State the following Statement are True or False:

Annual Return must be filed with the Registrar of Companies within 60 days from the Annual General Meeting.

  1. True

  2. False


Correct Option: A
Explanation:
This Statements is True because of the following reasons:-

(i) It is a document that must be filed with the Registrar of Companies at the end of each financial year. 
(ii) The secretary has to file Annual Return along with the audited Balance Sheet, Profit and Loss account and Auditor's Report with the Registrar within 60 days from the date of holding the Annual General Meeting.
The contents of the Annual Return of a company as given in Part I of Schedule of the Companies Act, 1956 are as under: 
(a) The address of the registered office of the company. 
(b) The name and address of any place outside India where any part of the register of members or register of debenture holders is kept under the provisions of the Companies Act.
(c) The details of the breakup of the share capital and debentures of the company as existed on the date of the last Annual General Meeting. 
(d) Particulars of the total amount of indebtedness of the company as existed on the date of the last Annual General Meeting of the company. 
(e) Particulars of directors, managers and secretaries. 
(f) The list of the past and present members and debenture holders. 
(g) The Annual Return is to be filled in the prescribed form as given in part II of the schedule mentioned above. 

Now, Companies Act ,2013 deals with provisions relating to General Meeting.

State the following Statement is True or False:

The power of granting extension of time for holding the Annual General Meeting is vested in the Registrar of Companies.

  1. True

  2. False


Correct Option: A
Explanation:

This Statement is True because of the following reasons:

(i) As per section 166 of the Companies Act, 1956, the company is required to hold its Annual. General Meeting for the financial year ending on 31st march on or before 30th September.
(ii) If for any reason, the company is unable to conduct the meeting, the, company secretary has to write to the Registrar of Companies requesting for extension in time for holding the Annual General Meeting. 
(iii) The company secretary while corresponding to the Registrar of companies has to assure the Registrar of Companies that all necessary formalities would be completed and the meeting would be conducted in the extended time.
(iv) The company secretary gives an undertaking on behalf of the company, of course, to pay the penalty for the delay. 

Provisions relating to this are now dealt by the Companies Act ,2013.

Select the correct option given below:

Return of allotment must be filed with the Registrar of companies within____ days from the date of allotment.

  1. 10

  2. 20

  3. 30

  4. 40


Correct Option: C
Explanation:

According to section 39 of companies act 2013 :if the minimum amount has not been subscribed and the sum payable is not received within 30 days from the date of issue of the prospects or such other period as may be specified by the securities and exchange, the amount received under sub section (1)shall be returned within such time and manner as may be prescribed   

State the following statements is True or False:
The Registrar is a statutory authority under the Companies Act, 1956.

  1. True

  2. False


Correct Option: A
Explanation:

This statement is True, due to the following reasons :

(i) Through the Ministry of Corporate the Registrar of Companies is appointed by the Central Government to have statutory control over the companies.
(ii) The Registrar of an Companies  is an official, appointed by the Central Government to co-ordinate ordinate d supervise the promotion, registration and matters relating to companies registered under the Companies Act 1956. (iii) As per law, no company can commence business unless it is registered with the Registrar of Companies. 
(iv) He is responsible for the administration of company law in the state. 
(v) The Registrar is a recognised statutory authority under the Companies Act. (vi) He has to see that companies operate within the legal limits and comply to various legal formalities as laid down by the Companies Act. 
(vii) The Registrar has powers to take action against the companies which do no comply with legal provisions.
Hence the Registrar is a statutory authority under the Companies Act, 1956. 

Provisions relating to this are now dealt by the Companies Act ,2013.

State the following statement is True or False:

The Registrar of Companies is appointed by the State Government.

  1. True

  2. False


Correct Option: B
Explanation:

This statement is False, due to the following reason:

(i) The Registrar of companies is an officer appointed by the Central Government for each state.
(ii) He is being appointed to register, supervise and co-ordinate to the matter relating to the companies registered under the Companies Act,1956.
(iii) He has control over the various activities carried by the companies in his state.
(iv) The Registrar is a recognised statutory authority under the Companies Act.
(v) He has to see that companies,operate within the legal limits and comply to various legal formalities.
(vi) Every company has to submit certain documents with Registrar to obtain incorporation certificate and business commencement certificate.

Provisions relating to registrar are now dealt by the Companies Act ,2013.

State the following statement is True or False:

Company secretary has to file copy of special resolution with the Registrar of Companies.

  1. True

  2. False


Correct Option: A
Explanation:

This statement is True due to the following reasons :

(i) Registrar of companies is appointed by the Central Government to have statutory control over the Companies.
(ii) Every company has to submit certain documents with Registrar to obtain incorporation and business commencement certificate.
(iii) The Registrar of Companies has to perform function like, Incorporation of Companies, Registration of Documents, etc.
(v) The Secretary has to make correspondence with the Registrar of Companies for filing various documents. 
(v) The Secretary has to write letters to the Registrar, on various issues, one such is 'Filing Special Resolution'. 
(vi) Under Section 192 of the Companies Act 1956; whenever a special resolution is adopted at a general meeting, a copy of the resolution is to be-filed by the Secretary with the Registrar of Companies. If default is made in Complying with the filling of special resolution, the company and defaulting officer shall be punishable with fine. 
(vii) It should be filed within 30 days of it being adopted.
(viii) He also has to enclose the requisite filing fees.

Provisions relating to this are now dealt by the Companies Act ,2013.

The Registrar of Companies may grant an extension of time up to a maximum period of ______for holding Annual General Meeting.
  1. 1 month

  2. 3 month

  3. 6 month

  4. 8 month


Correct Option: B
Explanation:

If the company does not hold annual general meeting within time, on the applicationmade by the company before the due date,the registrar may, for any special reason may extend the time within which any annual general meeting shall be held a period of period not exceeding 3 months 

State the following statements is True or False:
The Registrar of Companies can impose fine or penalty on companies when irregularities are noticed.

  1. True

  2. False


Correct Option: A
Explanation:

Committee is of the view that in tune with legal developments in the country, guided by recent pronouncements of the Apex court it would be appropriate for the law to provide a regime of penalties for companies. These would be monetary in nature since it would not be feasible to imprison an artificial person such as a company. Such penalties should also be relatable to the size of the company in addition to the nature of the offence.

_________ in any organization must have characteristics like skills, quality, high morale, commitment towards the work, attitude, etc.

  1. Marketing Resources

  2. Financial Factors

  3. Human resource

  4. All of above


Correct Option: C
Explanation:

Human resource are the people who make up the work force of an organisation. They must have characteristics like skills, quality, high morale, commitment towards the work, attitude etc which are essentials for reaching the organisational goals.

Which of the following statements best describe economic activities?

  1. These activities are undertaken to earn money

  2. These activities provide pleasure

  3. These activities involve no risk

  4. These activities involve working outside the house


Correct Option: A
Explanation:

Economic activities are those activities which are undertaken to earn money and done to earn a living. For example a person selling vegetables in your locality is a type of an economic activity as he earn money by this activity.

Who of the following has defined business as "Human activity directed towards producing or acquiring wealth through buying and selling goods"?

  1. Wheeler

  2. H. Fayol

  3. J. Stephenson

  4. Lewis H. Haney


Correct Option: D
Explanation:

According to Lewis H. Haney defined business as "Human activity directed towards producing or acquiring wealth through buying and selling goods." 

In other words, business is concerned with buying and selling of goods and services and earning profit. 

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