Tag: fundamentals of business activities

Questions Related to fundamentals of business activities

A company secretary is the mouth piece of the Board of Directors. 

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:
(i) A company secretary needs sound general education. 
(ii) He must also have knowledge of correspondence, office organisation, book-keeping and accountancy. 
(iii) He must also have knowledge of secretarial work relating to the company meetings. 
(iv) He must have legal back-ground including the knowledge of Indian Companies Act and other laws like Income Tax Act and Factories Act. 
(v) A company secretary is normally appointed by the Board of Directors. 
(vi) He executes the decisions of the Board and carries out the instructions and orders of the board. 
(vii)  He acts as a confidential clerk of the Board. 
(viii) He has to help the directors in forming policies of the company and preparing progress report and other reports. 
(ix) A company secretary acts as a line of communication between the Board and the staff. 
(x) He acts as the mouth piece of the Board, as the Directors act only through the secretary 
(xi) Even grievances of the staff are communicated to the Directors through him. 
(xii) Hence, a company secretary is the mouth piece of the Board of Directors.

The functions of a secretary depend on ______ . 

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

  1. the nature of organisation

  2. the status of secretary

  3. the value of investment

  4. the number of share holders

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Correct Option: A
Explanation:

The function of secretary depend on the nature of the organisation, different organisations have different works and requirements which changes the functions of a secretary.

The quality of a secretary which enables him to adjust to varying situation is qualities of head.

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:

A company secretary is a representative of the company to the outside world. The main qualities of a secretary that helps them to adjust and adapt to the varying situation of the business environment is the quality to learn from continuous efforts which are also known as qualities of head. 

A personal secretary is appointed by the busy person.

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 appointed by the busy person as he needs personal assistance in his daily work .

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.