McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
When there is a untrue statement in a prospectus who can sue |
| A. | Subscribed in primary market |
| B. | Subscribed in secondary market |
| C. | Rights issue |
| D. | None of the above |
| Answer» A. Subscribed in primary market | |
| 2. |
Definition of prospectus was given under which sec. |
| A. | 2 (30) |
| B. | 2 (32) |
| C. | 2 (34) |
| D. | 2 (36) |
| Answer» D. 2 (36) | |
| 3. |
Which of the following are not required to issue prospectus? |
| A. | Private company |
| B. | In case of right issue |
| C. | Sweat equity issue |
| D. | All the above |
| Answer» D. All the above | |
| 4. |
_______are the prospectus issued instead of full prospectus |
| A. | Abridged |
| B. | Statement in lieu |
| C. | Shelf |
| D. | Red herring |
| Answer» A. Abridged | |
| 5. |
Which one of the following has a right to claim compensation for any loss due to misstatement in prospectus |
| A. | Purchasing shares in Primary Market |
| B. | Secondary Market |
| C. | Subscribers to memo. |
| D. | All the above |
| Answer» A. Purchasing shares in Primary Market | |
| 6. |
_______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 7. |
What is the liability not delivering that can be imposed for statement in lieu of prospectus_________ |
| A. | Fine – 10,000 |
| B. | Imprisonment – 2 years |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» A. Fine – 10,000 | |
| 8. |
_______ are the prospectus issued by the issuing house |
| A. | Deemed prospectus |
| B. | Shelf prospectus issued by the issuing house |
| C. | Red herring |
| D. | None of the above |
| Answer» A. Deemed prospectus | |
| 9. |
_________ prospectus were issued in case securities were issued in stages |
| A. | Deemed |
| B. | Shelf |
| C. | Red herring |
| D. | None of the above |
| Answer» B. Shelf | |
| 10. |
________are required to file prior to making second and subsequent issue of securities in case shelf prospectus are filed: |
| A. | Information memorandum |
| B. | Information articles |
| C. | Form 13 |
| D. | None of the above |
| Answer» A. Information memorandum | |
| 11. |
Information memorandum + shelf prospectus together constitutes ________ |
| A. | Memorandum |
| B. | Articles |
| C. | Prospectus |
| D. | None of the above |
| Answer» C. Prospectus | |
| 12. |
Validity period of information memorandum is _______ |
| A. | 1 year |
| B. | 2 years |
| C. | 3 years |
| D. | 4 years |
| Answer» A. 1 year | |
| 13. |
_________ prospectus were issued in order to test the market before finalizing issue size/ price. |
| A. | Deemed |
| B. | Shelf |
| C. | Red herring |
| D. | None of the above |
| Answer» C. Red herring | |
| 14. |
What is the punishment for directors, promoters and other persons for Misrepresentation in prospectus |
| A. | Fine 50,000 |
| B. | 2 years imprisonment |
| C. | Both of the above |
| D. | None |
| Answer» C. Both of the above | |
| 15. |
When a private company is converted into public company. In which form it should be |
| A. | Schedule III |
| B. | Schedule IV |
| C. | Schedule VI |
| D. | None of these |
| Answer» B. Schedule IV | |
| 16. |
A statement in lieu of prospectus is required to be issued |
| A. | by all companies which issue shares or debentures |
| B. | by public companies when shares are issued among friends and relatives |
| C. | by private companies as they do not issue shares to the public |
| D. | by all companies |
| Answer» B. by public companies when shares are issued among friends and relatives | |
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