Complete the Sentences (Weightage 5 Marks)
1. Introduction to Corporate Finance
Ans:- Initial planning of capital requirement is made by finance Manager.
2. When there is boom in economy, sales will ………………..
Ans:- When there is boom in economy, sales will Increase
3. The process of converting raw material into finished goods is called ……………..
Ans:- The process of converting raw material into finished goods is called Production cycle.
4. During recession period sales will …………………
Ans:- During recession period sales will Decrease
2. Sources of Corporate Finance
1. The finance needed by business organisation is termed as ………..
Ans: The finance needed by business organisation is termed as Capital.
2. The convertible preference share holders have a right to convert their shares into ………….
Ans: The convertible preference share holders have a right to convert their shares into Equity Shares .
3. Equity shareholders elect their representatives called …………
Ans: Equity shareholders elect their representatives called Board of Directors .
4. Bonus shares are issued as gift to ……………
Ans: Bonus shares are issued as gift to Equity Shareholders .
5. The bond holders are …………… of the company.
Ans: The bond holders are Creditors of the company.
6. Depository receipt traded in a country other than USA is called …………...
Ans: Depository receipt traded in a country other than USA is called Global Depository Receipt .
7. First Industrial policy was declared in the year ………
Ans: First Industrial policy was declared in the year 1948
8. When goods are delivered by supplier to customer on basis of deferred payment it is called as …………. .
Ans: When goods are delivered by supplier to customer on basis of deferred payment it is called as Trade Credit .
3. Issue of Shares
1. Share capital refers to capital made up of Equity shares and ………………
Ans:- Share capital refers to capital made up of Equity shares and Preference shares
2.Reserve capital is part of ………………….
Ans:- Reserve capital is part of Uncalled capital
3. Transfer of shares due to death, insolvency or insanity of member is called ……………………….
Transfer of shares due to death, insolvency or insanity of member is called Transmission of shares.
4. The two parties involved in transfer of shares are transferor and ……………………..
The two parties involved in transfer of shares are transferor and Transferee.
5. Voluntarily giving up of shares by a member due to inability to pay calls is called as ……………… .
Ans:- Voluntarily giving up of shares by a member due to inability to pay calls is called as surrender of shares
6. Company can forfeit only ……………. paid shares .
Ans:- Company can forfeit only Partly paid shares.
7. In case the original Share Certificate is torn or mutilated, company can issue ………………..
Ans:- In case the original Share Certificate is torn or mutilated, company can issue Duplicate share certificate
8. In case of transfer of shares, company has to issue to the transferee a new share certificate within ……………………
Ans:- In case of transfer of shares, company has to issue to the transferee a new share certificate within 1 month of date of receipt of instrument of transfer,.
9. Letter sent to applicants for informing them shares are allotted is called as …………………
Ans:- Letter sent to applicants for informing them shares are allotted is called as Letter of allotment,.
10. When applications received are more than the number of shares offered, it is called as ………………….
Ans:- When applications received are more than the number of shares offered, it is called as Over subscription, .
11. In Book Building Method, the final price at which shares are offered to investors is called
as …………………..
Ans:- In Book Building Method, the final price at which shares are offered to investors is called
as Cut-off price.
12. Shares issued free of cost to existing Equity shareholders is called as ………………………
Ans:- Shares issued free of cost to existing Equity shareholders is called as Bonus shares,
4. Issue of Debentures
1. A legal instrument conveying the assets of a company to the Debenture trustees is called …………………….
Ans:- A legal instrument conveying the assets of a company to the Debenture trustees is called Debenture Trust Deed.
2. To protect the interest of Debenture holders, a company appoints ……………
Ans:- To protect the interest of Debenture holders, a company appoints Debenture Trustees.
3. On receipt of application and money, the procedure for allotment of debentures should be completed within ……………………
Ans:- On receipt of application and money, the procedure for allotment of debentures should be completed within 60 days.
4.Authority to create charge on company’s assets is with the …………………
Ans:- Authority to create charge on company’s assets is with the Debenture Trustees . .
5. Secured debentures should be redeemed within ……………..
Ans:- Secured debentures should be redeemed within 10 years .
6. To stop a company from incurring further liabilities, the Debenture trustee can approach ……………….
Ans:- To stop a company from incurring further liabilities, the Debenture trustee can approach NCLT.. .
7. A company which issues prospectus or invites more than 500 persons to subscribe for its debentures, has to appoint …………………
Ans:- A company which issues prospectus or invites more than 500 persons to subscribe for its debentures, has to appoint Debenture Trustees .
8. Return on investment on debenture is called ………………..
Ans:- Return on investment on debenture is called Interest. .
9. For public issue of debentures of ` 100 crores, minimum subscription should be …………………….
Ans:- For public issue of debentures of ` 100 crores, minimum subscription should be 75%
10. For public issue or rights issue of convertible debentures, as per SEBI, a company must obtain ……………….
Ans:- For public issue or rights issue of convertible debentures, as per SEBI, a company must obtain Credit Rating..
5. Deposits
1. Deposit is a type of …………… term loan
Ans:- Deposit is a type of Short term loan.
2. Eligible Public company and Govt. Company can accept deposits from ………………
Ans:- Eligible Public company and Govt. Company can accept deposits from Public .
3. To collect deposits from public, Eligible public company must have a net worth of not less than ………….
Ans:- To collect deposits from public, Eligible public company must have a net worth of not less than ₹100 crores..
4. A Government company can accept deposits from public not exceeding …………..
Ans:- A Government company can accept deposits from public not exceeding 35% of its paid-up share capital and free reserves .
5. Deposits can be accepted or renewed for a period not less than 6 months and not more than ……………
Ans:- Deposits can be accepted or renewed for a period not less than 6 months and not more than 36 months. .
6. Company cannot accept or renew deposits repayable on ………………
Ans:- Company cannot accept or renew deposits repayable on Demand
.
7. Premature repayment of deposits can be done by a company but not before ………………….
Ans:- Premature repayment of deposits can be done by a company but not before 3 months.
8. To invite the public to subscribe for its deposits, a company issues ………………
Ans:- To invite the public to subscribe for its deposits, a company issues Advertisement. .
9. Agency which gives ratings of the deposits of a company is called ………….
Ans:- Agency which gives ratings of the deposits of a company is called Credit Rating Agency .
10. Account which is used only for repaying deposits is called ……………..
Ans:- Account which is used only for repaying deposits is called Deposit Repayment Reserve Account
6. Correspondence with Members
1. Dividend is recommended by ………..
Ans:- Dividend is recommended by Board of Director .
2. A company capitalises its Reserve Fund for issue of ………. shares.
Ans:- A company capitalises its Reserve Fund for issue of Bonus shares.
3. Payment of dividend must be made within ……. days of its declaration.
Ans:- Payment of dividend must be made within 30 days of its declaration.
4. Dividend is approved by the ……………….. in the Annual General Meeting.
Ans:- Dividend is approved by the Shareholders in the Annual General Meeting.
5. The ………………… has to communicate the decisions of the management to the members by conducting correspondence.
Ans:- The Sacretary has to communicate the decisions of the management to the members by conducting correspondence.
7. Correspondence with Debentureholders
1. Debenture holder is a ……………. of the company.
Ans:- Debenture holder is a Creditor of the company.
2. Company issues …………. certificate to the debenture holder after allotment of debentures.
Ans:- Company issues Debenture certificate to the debenture holder after allotment of debentures.
3. Debenture holder gets ……….. at fixed rate as a return or income.
Ans:- Debenture holder gets Interest. at fixed rate as a return or income.
4. In case of Registered Debentures, Interest ……… are used to pay interest.
In case of Registered Debentures, Interest Warrant. are used to pay interest.
5. The ……………. has to correspond with debenture holders on important occasions.
Ans:- The Secretary. has to correspond with debenture holders on important occasions.
6. The person who purchases the debentures of a company is called ……………………
Ans:- The person who purchases the debentures of a company is called Debenture holders
7. Interest does not depend upon ………..of the company
Ans:- Interest does not depend upon Profit of the company.
8. Company cannot issue debentures with ………… rights
Ans:- Company cannot issue debentures with Voting rights.
9. Debenture certificate should be issued within a period of ….. months, from the date of allotment of debentures.
Ans:- Debenture certificate should be issued within a period of 6 months, from the date of allotment of debentures.
10. A company cannot issue debentures to more than 500 people without appointing a …………….
Ans:- A company cannot issue debentures to more than 500 people without appointing a Debenture Trustee
11. The power to issue debentures has been vested with the ………
Ans:- The power to issue debentures has been vested with the Board of Directors
8. Correspondence with Depositors
1. Depositors are the ………… of the company .
Ans:- Depositors are the .Creditors. of the company.
2. The …………… must be cautious and careful while writing letters to the depositors.
Ans:- The .Secretary. must be cautious and careful while writing letters to the depositors.
3. Deposit is a .Short. term source of finance of the company.
Ans:- Deposit is a ………. term source of finance of the company.
4. A company can accept deposits for the minimum period of …. months.
Ans:- A company can accept deposits for the minimum period of .6.. months.
5. Depositors are entitled to receive ………. at fixed rate
Ans:- Depositors are entitled to receive ..Interest.. at fixed rate.
9. Depository System
1. Central location for keeping securities in demated form is …………
Ans:- Central location for keeping securities in demated form is Depository .
2. Freezing of debit/credit of securities is possible in ………..
Ans:- Freezing of debit/credit of securities is possible in Depository .
3. Freezing of debit/credit of securities is possible in ………..
Ans:- Freezing of debit/credit of securities is possible in 1947 .
4. The Indian Depository Act was passed in the year ……………
Ans:- The Indian Depository Act was passed in the year 1996 .
5. Link between Depository and Investor is ……….
Ans:- Link between Depository and Investor is DP .
6. Account of securities of the Investors is maintained by ……..
Ans:- Account of securities of the Investors is maintained by DP .
7. The process which converts physical securities in electronic form is ………………..
Ans:- The process which converts physical securities in electronic form is Demat .
8. The process which converts digital securities in physical form is …………..
Ans:- The process which converts digital securities in physical form is Remat .
9. The Issuer company must register with ………………..
The Issuer company must register with Depository.
10. The unique code identifying a security is …………..
Ans:- The unique code identifying a security is ISIN .
11. The first depository of India is ……………
Ans:- The first depository of India is NSDL .
10. Dividend and Interest
1. Word dividend is derived from Latin term ………………
Ans:- Word dividend is derived from Latin term Dividendum .
2. Dividend is paid to ………………..
Ans:- Dividend is paid to Registered Shareholder .
3. Dividend can be declared only on recommendation of ……………
Ans:- Dividend can be declared only on recommendation of Board of Director .
4. Dividend must be paid in …………
Ans:- Dividend must be paid in Cash. .
5. The meeting at which final dividend is approved in ………..
Ans:- The meeting at which final dividend is approved in AGM .
6. Dividend cannot be paid out of ………..
Ans:- Dividend cannot be paid out of Capital .
7. Interim dividend is decided and declared by ……………..
Ans:- Interim dividend is decided and declared by Board of Director .
8. Pre decided and a fixed rate of dividend is paid to ………………
Ans:- Pre decided and a fixed rate of dividend is paid to Preference Shareholder .
9. Payment of dividend must be completed within …………..
Ans:- Payment of dividend must be completed within 30 days .
10. Payment of Interim Dividend needs to be authorized by ………….
Ans:- Payment of Interim Dividend needs to be authorized by Article of Association .
11. The obligatory payment made by company to its creditors is called as …………..
Ans:- The obligatory payment made by company to its creditors is called as Interest
11. Financial Market
Ans:- Funds borrowed and lent in money market are for Short term.
2. When trade bills are accepted by commercial banks, it is known as …………………
3. Unsecured negotiable promissory notes issued by a commercial bank is called as ……….
Ans:- Unsecured negotiable promissory notes issued by a commercial bank is called as Certificate of Deposit
4. New shares, debentures, etc. are traded in ………….. market.
Ans:- New shares, debentures, etc. are traded in Primary / New issue market.
5. In capital market the instruments traded have maturity period of more than …………. year .
Ans:- In capital market the instruments traded have maturity period of more than One year.
12. Stock Exchange
1. The oldest Stock Exchange in India is the ……….
Ans:- The oldest Stock Exchange in India is the Bombay Stock Exchange
2. The largest and most modern stock exchange in India is the …………..
Ans:- The largest and most modern stock exchange in India is the National Stock Exchange
3. A person who buys or sells shares on behalf of his clients is called as ……………. .
Ans:- A person who buys or sells shares on behalf of his clients is called as Broker
4. A speculator who expects fall in prices of shares ……………..
Ans:- A speculator who expects fall in prices of shares Bear