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. |
A company must inform the registrar about redemption of preference shares with in |
| A. | 21 days |
| B. | 15 days |
| C. | 30 days |
| D. | None of the above |
| Answer» C. 30 days | |
| 2. |
Share premium amount is treated as the __________ capital of a company |
| A. | issued |
| B. | Reserve |
| C. | Subscribe |
| D. | None of the above |
| Answer» B. Reserve | |
| 3. |
A company can create ‘reserve capital’ by passing__________ |
| A. | an ordinary resolution |
| B. | a special resolution |
| C. | a board resolution |
| D. | None of the above |
| Answer» B. a special resolution | |
| 4. |
The capital which is part of the uncalled capital of the company which can be called up only in the event of its winding up it is called |
| A. | Issued capital |
| B. | Nominal capital |
| C. | Authorised Capital |
| D. | Reserve capital |
| Answer» D. Reserve capital | |
| 5. |
XYZ Co. is a holding of XZ Pvt. Company. XZ Co. issued deferred shares. The issue is valid or void |
| A. | Valid |
| B. | Void |
| C. | Situation does not arise |
| D. | None of these |
| Answer» B. Void | |
| 6. |
What is the maximum period for redemption in case of preference shares issued by the company? |
| A. | 10 years |
| B. | 15 years |
| C. | 20 years |
| D. | None of these |
| Answer» C. 20 years | |
| 7. |
Capital redemption reserve must be used for issue of |
| A. | Fully paid bonus shares |
| B. | Fully paid equity shares |
| C. | Preference shares |
| D. | None of the above. |
| Answer» A. Fully paid bonus shares | |
| 8. |
Part of the issued capital taken by public is called ___________ |
| A. | Subscribed |
| B. | Called - up capital |
| C. | Un called capital |
| D. | Paid up capital |
| Answer» A. Subscribed | |
| 9. |
Part of authorized capital which is offered by the company for subscription. |
| A. | Subscribed |
| B. | Issued |
| C. | Un called |
| D. | called up |
| Answer» B. Issued | |
| 10. |
Stamp duty on registration of the company is payable based on _________capital. |
| A. | Nominal |
| B. | Authorised |
| C. | Both a & b |
| D. | None |
| Answer» C. Both a & b | |
| 11. |
Deferred shares are also known as ____________ shares |
| A. | Founders |
| B. | Equity |
| C. | Preference |
| D. | None |
| Answer» A. Founders | |
| 12. |
_________ Preference shares carry the right to cumulate the dividends |
| A. | Converted |
| B. | Cumulative |
| C. | Nonconverted |
| D. | None |
| Answer» B. Cumulative | |
| 13. |
Paying back of capital is called |
| A. | Redemption |
| B. | Conversion |
| C. | Participation |
| D. | None |
| Answer» A. Redemption | |
| 14. |
Premium amount on the securities are transferred to ________account |
| A. | Securities premium |
| B. | Reserve fund |
| C. | Capital Reserve |
| D. | None |
| Answer» D. None | |
| 15. |
____are the shares issued by the company to it employees or directors for consideration other than cash |
| A. | Bonus |
| B. | Sweat |
| C. | Right |
| D. | None of the above |
| Answer» B. Sweat | |
| 16. |
Cumulative preference share holders have voting right if dividends are in arrears for years |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 17. |
_______ form is to be find in case of variation rights of share holders |
| A. | 23 |
| B. | 19 |
| C. | 18 |
| D. | 20 |
| Answer» B. 19 | |
| 18. |
_________ is an aggregate of fully paid share that have been legally consolidated. |
| A. | Share |
| B. | Stock |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Stock | |
| 19. |
_________have fixed denomination |
| A. | Share |
| B. | Stock |
| C. | Both a & b |
| D. | None of the above |
| Answer» A. Share | |
| 20. |
________resolution should be passed by the company to offer shares to outsiders |
| A. | Special resolution |
| B. | Ordinary resolution |
| C. | C.G |
| D. | None of the above |
| Answer» A. Special resolution | |
| 21. |
Company must pass ________ for reducing its share capital |
| A. | O.R |
| B. | S.R |
| C. | C.G permission |
| D. | None of the above |
| Answer» B. S.R | |
| 22. |
Court order the company to add _________ after reducing its share capital |
| A. | And reduced |
| B. | Ltd |
| C. | Both a or b |
| D. | None of the above |
| Answer» A. And reduced | |
| 23. |
For reducing its share capital it should give notice to whom? |
| A. | Debtors |
| B. | Creditors |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Creditors | |
| 24. |
Reduction & diminution is done under which sec. |
| A. | 100 & 94 |
| B. | 94 & 100 |
| C. | 100 & 96 |
| D. | 96 & 100 |
| Answer» A. 100 & 94 | |
| 25. |
Which of the following can be used for buy back of shares |
| A. | Free reserves |
| B. | Securities premium |
| C. | Proceeds of fresh issue of shares |
| D. | All of the above |
| Answer» D. All of the above | |
| 26. |
Buy back by board resolution can only be upto _________ |
| A. | 15 |
| B. | 10 |
| C. | 25 |
| D. | 20 |
| Answer» B. 10 | |
| 27. |
Buy back should be less than or equal to _________% of total paid up capital |
| A. | 25 |
| B. | 30 |
| C. | 35 |
| D. | 40 |
| Answer» A. 25 | |
| 28. |
In case of buy back debt equity ratio should be ________ |
| A. | 1:2 |
| B. | 2:1 |
| C. | 3:1 |
| D. | 1:3 |
| Answer» B. 2:1 | |
| 29. |
Every buy back shall be completed within _____ month from the date of passing the S.R. |
| A. | 6 |
| B. | 8 |
| C. | 10 |
| D. | 12 |
| Answer» D. 12 | |
| 30. |
__________companies are permitted to buy back its shares |
| A. | Insolvent |
| B. | Solvent |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Solvent | |
| 31. |
Buy back securities should be physically destroyed within ________days |
| A. | 7 |
| B. | 17 |
| C. | 21 |
| D. | 28 |
| Answer» A. 7 | |
| 32. |
After buy back company can’t issue the same kind of shares for ________months |
| A. | 6 |
| B. | 12 |
| C. | 18 |
| D. | 24 |
| Answer» A. 6 | |
| 33. |
Within 30 days of completion of buy back company shall file the details with whom _________ |
| A. | Registrar |
| B. | SEBI |
| C. | Both a & b |
| D. | None of the above |
| Answer» A. Registrar | |
| 34. |
If buy back is made from free resources then what should be created __________ |
| A. | Debenture Redemption Reserve |
| B. | Capital Redemption Reserve |
| C. | Statutory liquid Ratio. |
| D. | None of the above |
| Answer» B. Capital Redemption Reserve | |
| 35. |
The premium amount that can be charged as per companies Act. |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | None of these |
| Answer» D. None of these | |
| 36. |
A company to issue sweat equity shares must pass a. |
| A. | Special resolution |
| B. | Ordinary resolution |
| C. | Unanimous resolution |
| D. | None of these |
| Answer» A. Special resolution | |
| 37. |
The notice offering right shares must allow the members ________to exercise their option to accept, reject or renounce it |
| A. | 10 days |
| B. | 14 days |
| C. | 15 days |
| D. | 20 days |
| Answer» C. 15 days | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.