McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 51. |
________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 | |
| 52. |
Information memorandum + shelf prospectus together constitutes ________ |
| A. | Memorandum |
| B. | Articles |
| C. | Prospectus |
| D. | None of the above |
| Answer» C. Prospectus | |
| 53. |
Validity period of information memorandum is _______ |
| A. | 1 year |
| B. | 2 years |
| C. | 3 years |
| D. | 4 years |
| Answer» A. 1 year | |
| 54. |
_________ 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 | |
| 55. |
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 | |
| 56. |
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 | |
| 57. |
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 | |
| 58. |
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 | |
| 59. |
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 | |
| 60. |
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 | |
| 61. |
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 | |
| 62. |
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 | |
| 63. |
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 | |
| 64. |
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 | |
| 65. |
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 | |
| 66. |
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 | |
| 67. |
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 | |
| 68. |
Deferred shares are also known as ____________ shares |
| A. | Founders |
| B. | Equity |
| C. | Preference |
| D. | None |
| Answer» A. Founders | |
| 69. |
_________ Preference shares carry the right to cumulate the dividends |
| A. | Converted |
| B. | Cumulative |
| C. | Nonconverted |
| D. | None |
| Answer» B. Cumulative | |
| 70. |
Paying back of capital is called |
| A. | Redemption |
| B. | Conversion |
| C. | Participation |
| D. | None |
| Answer» A. Redemption | |
| 71. |
Premium amount on the securities are transferred to ________account |
| A. | Securities premium |
| B. | Reserve fund |
| C. | Capital Reserve |
| D. | None |
| Answer» D. None | |
| 72. |
____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 | |
| 73. |
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 | |
| 74. |
_______ form is to be find in case of variation rights of share holders |
| A. | 23 |
| B. | 19 |
| C. | 18 |
| D. | 20 |
| Answer» B. 19 | |
| 75. |
_________ 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 | |
| 76. |
_________have fixed denomination |
| A. | Share |
| B. | Stock |
| C. | Both a & b |
| D. | None of the above |
| Answer» A. Share | |
| 77. |
________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 | |
| 78. |
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 | |
| 79. |
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 | |
| 80. |
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 | |
| 81. |
Reduction & diminution is done under which sec. |
| A. | 100 & 94 |
| B. | 94 & 100 |
| C. | 100 & 96 |
| D. | 96 & 100 |
| Answer» A. 100 & 94 | |
| 82. |
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 | |
| 83. |
Buy back by board resolution can only be upto _________ |
| A. | 15 |
| B. | 10 |
| C. | 25 |
| D. | 20 |
| Answer» B. 10 | |
| 84. |
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 | |
| 85. |
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 | |
| 86. |
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 | |
| 87. |
__________companies are permitted to buy back its shares |
| A. | Insolvent |
| B. | Solvent |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Solvent | |
| 88. |
Buy back securities should be physically destroyed within ________days |
| A. | 7 |
| B. | 17 |
| C. | 21 |
| D. | 28 |
| Answer» A. 7 | |
| 89. |
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 | |
| 90. |
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 | |
| 91. |
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 | |
| 92. |
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 | |
| 93. |
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 | |
| 94. |
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 | |
| 95. |
The company must deliver share certificate within ___________ if the shares allotted by company. |
| A. | 2 months |
| B. | 3 months |
| C. | 4 months |
| D. | none of these |
| Answer» B. 3 months | |
| 96. |
The company must deliver share certificate within ___________ if the shares applied for transfer. |
| A. | 3 months |
| B. | 2 months |
| C. | 5 months |
| D. | none of these |
| Answer» B. 2 months | |
| 97. |
Share warrants can be issued with the prior approval of the _____________ |
| A. | Company law board |
| B. | Dept of company affairs |
| C. | Registrar |
| D. | None |
| Answer» C. Registrar | |
| 98. |
Stamp duty to be paid at the time of issue of share certificate is. |
| A. | Nominal |
| B. | High |
| C. | Very high |
| D. | None of these |
| Answer» A. Nominal | |
| 99. |
Stamp duty to be paid at the time of issue of share warrant. |
| A. | Nominal |
| B. | High |
| C. | Very high |
| D. | None of these |
| Answer» C. Very high | |
| 100. |
______ specifies the time limit with in which share certificate is to be delivered |
| A. | sec 110 |
| B. | sec 111 |
| C. | sec 112 |
| D. | sec 113 |
| Answer» D. sec 113 | |
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