Tag: elements of business

Questions Related to elements of business

The functions of a personal secretary depend on the nature of work of his master.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True , a personal secretary is an administrative assistance who is hired to reduce the burden of the employer . The job of the secretary is to do clerical , administrative and management work for the employer . The functions of a personal secretary clearly depends upon the type of work and the functioning of the employer as personal secretary is suppose to do the daily functions on the behalf of the employer . A personal secretary is supposed to do the management of the schedules of the employer arrangement of the meetings , client coordination etc .

At the end of every year all directors retire.
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

False , A company's Article of Association may provide that one-third of the directors must retire by rotation at each annual general meeting. If two or more persons were originally appointed on the same day , those to retire should be between them or determined by lot.

State  the following statement is True of False:

The first auditor is appointed by the shareholders of the company.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

According to the Company Act , 2013 , the first auditor is appointed by the shareholders of the company at the time of commencement . 

Auditor is a person appointed by the company to execute audit. auditing is done by the auditor to check the accuracy of the accounts .  The first auditor is appointed by shareholders.

State the following statement is True or False.

Annual Report is prepared by members.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

This statement is False because of the following reasons : 

(i) The Board of Director is the authority who convene this meeting. 
(ii) This authority is delegated to the secretary in Board Meeting.
(iii) The secretary has to ensure the preparation of annual report and annual accounts. 
(iv) These reports and financial statement need to be approved by the board and the auditors.
(v) The secretary presents the Annual Accounts to the directors for approval and obtains signature. 
(vi) He also sends Annual Accounts to the auditor for audit.
(vii) The secretary then drafts the Directors' Report. This report presents the performance of the company during the year.
Hence, it is the secretary and not the members who prepare annual report.

State the following statement is True or False.

The Secretary of the meeting has to draft the minutes of the meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

This statement is True because of the following reasons : 

(i) Minutes are brief summary of the business transacted at a meeting.
(ii) A secretary has to make entries in the minutes book within 30 days of every meeting.
(iii) The minutes of general meetings and board meetings must be recorded within 30 days of such meeting.
(iv) The secretary should show the minutes to the chairman immediately after drafting and get them approved from the chairman.
(v) Minutes cannot be altered once approved and signed by the chairman.
(vi) The secretary should draft the minutes after going through the agenda and the notes taken down by him during the course of the meeting.
(vii) Minutes should be complete in all respects i.e. all resolutions and decisions taken must be incorporated in the minutes.
(viii) Minutes should be divided into suitable paragraphs.
(ix) Minutes should be drafted in an affirmative manner.
(x) Hence, the secretary of the meeting has to draft the minutes of the meeting.

State the following statement is True or False.
The Annual  General Meeting is held every year.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

The Extraordinary General Meeting is held every year. It is meeting which other than company's annual meeting that regularly occurs among a company's shareholders , executives and any other members.

This meeting is usually of short notice and deals with an urgent matter , often concerning company's management . Thus extraordinary general meeting is held every year.

State the following statement is True or False.

A notice of meeting must be sent to all members in case of General Meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

This statements is True because of the following reason:

(i) The Board of Director is the authority  who convene this meeting and delegate the authority to the secretary.
(ii) Atleast 21 days advance notice from the date the meeting must be given to all the member at their registered addresses.
(iii) The notice,admit card,etc. atleast 21 days before the date of holding of such meeting.

Only special business is transacted at Annual General Meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

False , Annual General Meeting is a mandatory yearly gathering of company's interested shareholders . At the meeting the directors of the company present an annual report containing information for the shareholders about the company's performance and strategy. Shareholders with voting rights vote on current issues such as appointment of board of directors , executive compensation, divident payment and selection of auditors.

State the following statement is True or False.

21 clear days notice should be given is case of Board Meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

This statement is False because of the following reasons:

(i) Notice refers to a formal invitation in writing indicating the day,date ,time and place attend meeting.
(ii) The chairman of the board is the proper authority to convene Board Meeting.
(iii)To conduct Board Meeting, a notice of reasonable period should be given.
(iv) However, the company 's Article of Association can provide a definite period of notice case of board meeting.
Thus, there is no need to serve 21 clear days notice in case of Board Meeting.

State the following statements is True or False:

The meeting of shareholders which is held in between two consecutive Annual General Meetings is Extra Ordinary General meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True, the meeting which is held between two consecutive Annual General Meetings is called Extraordinary General Meeting . It is a sort notice meeting o members and the shareholders especially to consider a particular matter.