McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Financial Markets (B F M) .
| 51. |
___________ defines the various terms connected with takeover like acquirer, acquisition, target company, etc. |
| A. | Regulation 2 |
| B. | Regulation 3(1) |
| C. | Regulation 3(3) |
| D. | Regulation 4 |
| Answer» A. Regulation 2 | |
| 52. |
__________ should be in public interest. |
| A. | Amalgamation |
| B. | Takeover |
| C. | Merger |
| D. | Demerger |
| Answer» A. Amalgamation | |
| 53. |
The _________ is the process of making changes in the composition of a firms one or more business portfolio in order to have a more profitable enterprise. |
| A. | Corporate Restructuring |
| B. | Communication |
| C. | Ownership |
| D. | Capital Structure |
| Answer» A. Corporate Restructuring | |
| 54. |
________ takes place when one company acquires control over other company by way of purchase or exchange of shares. |
| A. | Merger |
| B. | Demerger |
| C. | Takeover |
| D. | Disinvestment |
| Answer» C. Takeover | |
| 55. |
The Competition Act essentially considers _________ kinds of anti- competitive agreements. |
| A. | one |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» B. Two | |
| 56. |
The _____________ has exempted the payment of stamp duty on instrument evidencing transfer of property between companies limited by shares. |
| A. | State Government |
| B. | Central Government |
| C. | Both (a) & (b) |
| D. | Parliament |
| Answer» B. Central Government | |
| 57. |
Amalgamated entities can assess to _______ number of market resources. |
| A. | Smaller |
| B. | Larger |
| C. | Limited |
| D. | All of the above |
| Answer» B. Larger | |
| 58. |
The risk of investors can be __________ through adequate transparency and disclosures. |
| A. | Minimized |
| B. | Maximized |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» A. Minimized | |
| 59. |
___________ is the form of demerger where shareholders of existing company form a new company to takeover specific division of existing company. |
| A. | Spin off |
| B. | Split off |
| C. | Split up |
| D. | All of the above |
| Answer» B. Split off | |
| 60. |
___________ is a combination of two or more companies into an existing company. |
| A. | Absorption |
| B. | Consolidation |
| C. | Both (a) & (b) |
| D. | Franchising |
| Answer» A. Absorption | |
| 61. |
_________ helps in enhancing market leadership of the company. |
| A. | Merger |
| B. | Demerger |
| C. | Amalgamation |
| D. | Takeover |
| Answer» C. Amalgamation | |
| 62. |
After meeting, the _________ of the meeting shall report the result thereof to the court. |
| A. | Chairman |
| B. | Board of Directors |
| C. | Shareholder |
| D. | All of the above |
| Answer» A. Chairman | |
| 63. |
The company or companies which so merge being referred to as the _______ company or companies. |
| A. | Amalgamated |
| B. | Amalgamating |
| C. | Both (a) & (b) |
| D. | Partnership Firm |
| Answer» B. Amalgamating | |
| 64. |
An existing company transfers its various divisions to one or more new companies formed for the purpose, is said to be ______________ |
| A. | Partial demerger |
| B. | Complete demerger |
| C. | Takeover |
| D. | Disinvestment |
| Answer» B. Complete demerger | |
| 65. |
_________ takes place when a healthy company merges with a financially weak company. |
| A. | Reverse Merger |
| B. | Demerger |
| C. | Takeover |
| D. | Disinvestment |
| Answer» A. Reverse Merger | |
| 66. |
_________may be defined as an arrangement where one party grants another party the right to use trade name. |
| A. | Alliance |
| B. | Franchising |
| C. | Slump Sale |
| D. | Joint Venture |
| Answer» B. Franchising | |
| 67. |
A popular defence mechanism against hostile takeover bids is the creation of securities called ___________ |
| A. | Shark Repellents |
| B. | Poison Pills |
| C. | Packman defence |
| D. | The Crown Jewel |
| Answer» B. Poison Pills | |
| 68. |
_______ has laid down the guidelines for takeovers in order to protect the interest of the small investors. |
| A. | SEBI |
| B. | RBI |
| C. | Both (a) & (b) |
| D. | Government |
| Answer» A. SEBI | |
| 69. |
A _________merger is a merger of business firms who are engaged into same line of business. |
| A. | Horizontal |
| B. | Vertical |
| C. | Conglomerate |
| D. | Co generic |
| Answer» A. Horizontal | |
| 70. |
The restructuring of companies by way of takeover is governed by _________ |
| A. | SEBI |
| B. | RBI |
| C. | Government |
| D. | All of the above |
| Answer» A. SEBI | |
| 71. |
________ is a technique of corporate restructuring in which an independent company is created from parent company in order to promote specialization. |
| A. | Merger |
| B. | Demerger |
| C. | Takeover |
| D. | Disinvestment |
| Answer» B. Demerger | |
| 72. |
A ________is a combination of two or more companies into a new company. |
| A. | Consolidation |
| B. | Absorption |
| C. | Both (a) & (b) |
| D. | Demerger |
| Answer» A. Consolidation | |
| 73. |
_______ merger takes place upon the combination of two companies which are operating in the same industry but at different stages of production or distribution system. |
| A. | Vertical |
| B. | Horizontal |
| C. | Co generic |
| D. | Conglomerate |
| Answer» A. Vertical | |
| 74. |
__________is a venture in which an enterprise is formed with participation in the ownership, control and management of minimum of two parties. |
| A. | Joint Venture |
| B. | Takeover |
| C. | Franchising |
| D. | Demerger |
| Answer» A. Joint Venture | |
| 75. |
-------- growth is through enhanced customer base, higher sales, increased revenue, money material , machinery ect. |
| A. | Organised |
| B. | Unorganised |
| C. | Systematic |
| D. | Instant |
| Answer» A. Organised | |
| 76. |
----------growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect. |
| A. | Organised |
| B. | Unorganised |
| C. | Systematic |
| D. | Instant |
| Answer» B. Unorganised | |
| 77. |
A -------- merger is a merger of business firm engaged into same line of business. |
| A. | horizontal |
| B. | vertical |
| C. | conglomerate |
| D. | market extention |
| Answer» A. horizontal | |
| 78. |
A ---------- merger is a merger of business firm engaged in different stages of production in an industry. |
| A. | horizontal |
| B. | Vertical |
| C. | Conglomerate |
| D. | Market extention |
| Answer» B. Vertical | |
| 79. |
A ------------ is a merger of business firm who are engaged in unrelated business. |
| A. | horizontal |
| B. | Vertical |
| C. | Conglomerate |
| D. | Market extention |
| Answer» C. Conglomerate | |
| 80. |
The acquirer must have or needs to purchase more than -------% of the paid up equity capital of other company which the acquirer intended to overtake. |
| A. | 50 |
| B. | 75 |
| C. | 25 |
| D. | 51 |
| Answer» A. 50 | |
| 81. |
----------- has laid down the guidelines for takeovers in order to protect the interest of small investors. |
| A. | SEBI |
| B. | RBI |
| C. | ROC |
| D. | SBI |
| Answer» A. SEBI | |
| 82. |
------------------- strategy involves a significant change in the financial structure of the business firm. |
| A. | Financial Restructuring |
| B. | Financial Planning |
| C. | Financial Management |
| D. | Financial Services |
| Answer» A. Financial Restructuring | |
| 83. |
In stock swap merger the holder of target company's stock receive --------- of the acquiring company's stock. |
| A. | Shares |
| B. | Debentures |
| C. | Deposits |
| D. | Bonds |
| Answer» A. Shares | |
| 84. |
------------- are commercial loans raised by eligible resident entities from reorganised nonresident entities. |
| A. | External commercial borrowings |
| B. | Commercial bills |
| C. | Treasury bills |
| D. | Credit note |
| Answer» A. External commercial borrowings | |
| 85. |
A---------- is the acquisition of a company or division of another company, financed with the substantial portion of borrowed funds. |
| A. | Leveraged buyout |
| B. | Rehabilitation finance |
| C. | Corporate finance |
| D. | Institutional finance |
| Answer» A. Leveraged buyout | |
| 86. |
When sick industries gets merged with healthy units with financial package is termed as- ----- |
| A. | Financial rehabilitation |
| B. | LBO |
| C. | ECBs |
| D. | Corporate finance |
| Answer» A. Financial rehabilitation | |
| 87. |
The ---------is prepared by insolvency resulation applicant and submitted to insolvency professional who seek the consent of committee of creditors. |
| A. | Insolvency resulation plan |
| B. | Rehabilitation plan |
| C. | Insolvency report |
| D. | Resulation draft |
| Answer» A. Insolvency resulation plan | |
| 88. |
A ---------- is a financial transaction in which a company is purchased with a combination of equity and debt. |
| A. | Leveraged buyout |
| B. | Rehabilitation finance |
| C. | Borrowed finance |
| D. | Corporate finance |
| Answer» A. Leveraged buyout | |
| 89. |
In an------------------, the incumbent management team, acquires a sizeable portion of shares of the company. |
| A. | MBO |
| B. | LBO |
| C. | MBI |
| D. | MBS |
| Answer» A. MBO | |
| 90. |
An ---------in which an external management team acquires the shares. |
| A. | MBO |
| B. | LBO |
| C. | MBI |
| D. | MBS |
| Answer» C. MBI | |
| 91. |
A---------- buyout is a form of leveraged buyout where both the buyer and the seller are private equity firms. |
| A. | Primary |
| B. | Secondary |
| C. | Tertiary |
| D. | Management buyout |
| Answer» B. Secondary | |
| 92. |
If a company that was acquired in a secondary buyout get sold to another financial sponsor is called a ----------- buyout. |
| A. | Primary |
| B. | Secondary |
| C. | Tertiary |
| D. | Management buyout |
| Answer» C. Tertiary | |
| 93. |
For a company, a ----------- is a process by which restructuring takesplace and surplus cash is returned to shareholders. |
| A. | Capital reorganisation |
| B. | Capital appreciation |
| C. | Capital financing |
| D. | Capital depreciation |
| Answer» A. Capital reorganisation | |
| 94. |
------------- is a corporate action in which a company buy back its shares from the existing shareholders usually at a price higher than market price. |
| A. | Buy -Back |
| B. | Free Reserve |
| C. | Bonus issue |
| D. | Forfeiting |
| Answer» A. Buy -Back | |
| 95. |
Before the buyback of shares, the company shall file with the Registrar of Companies a letter of offer in e-form --------. |
| A. | SH-8 |
| B. | SH-9 |
| C. | SH-10 |
| D. | SH-11 |
| Answer» A. SH-8 | |
| 96. |
The company shall file with the Registrar of Companies, along with the letter of offer, and declaration of solvency in e-form --------------. |
| A. | SH-8 |
| B. | SH-9 |
| C. | SH-10 |
| D. | SH-11 |
| Answer» B. SH-9 | |
| 97. |
A-------------- is a type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares to gain control of the business. |
| A. | Takeover bid |
| B. | Merger bid |
| C. | Finance bid |
| D. | Invitation bid |
| Answer» A. Takeover bid | |
| 98. |
The company shall maintain a register of buyback for shares and other securities in form no.------------- at the registeredoffice of the company. |
| A. | SH-8 |
| B. | SH-9 |
| C. | SH-10 |
| D. | SH-11 |
| Answer» C. SH-10 | |
| 99. |
The return of buyback shall be filed with the Registrar in form no. ----------- |
| A. | SH-8 |
| B. | SH-9 |
| C. | SH-10 |
| D. | SH-11 |
| Answer» D. SH-11 | |
| 100. |
----------------of the company shall contain on enabling provision for buyback of shares. |
| A. | Article of Association |
| B. | Memorandum of Association |
| C. | Prospectus |
| D. | Offer document |
| Answer» A. Article of Association | |
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