Give One Word or Phrase or Term (Weightage 5 Marks)

1. Introduction to Corporate Finance

1. A key determinant of success of any business function.
Ans:-  Finance

2. The decision of finance manager which ensures that firm is well capitalised.
Ans:- Financing Decision

3. The decision of finance manager to deploy the funds in systematic manner.
Ans:- Investment decision

4. Capital needed to acquire fixed assets which are used for longer period of time.
Ans:- Fixed Capital

5. The sum of current assets.
Ans:- Working Capital

6. The excess of current assets over current liabilities.
Ans:- Gross working capital

7. The process of converting raw material into finished goods.
Ans:- Product Cycle

8. The boom and recession cycle in the economy.
Ans:- Business cycle

9. The ratio of different sources of funds in the total capital.
Ans:- Capital structure

10. The internal source of financing.
Ans:- Retained earnings

2. Sources of Corporate Finance

1. The ‘real masters’ of the company. –
Ans: Equity shareholders

2. A document of title of ownership of shares.
Ans: Share Certificate

3. The holders of these shares are entitled to participate in the surplus profit. 
Ans: Participating Preference Shares

4. A party through whom the company deals with debenture holders. 
Ans: Debenture trustees

5. Name the shareholders who participate in the management. 
Ans: Equity Shareholders

6. The value of share which is written on the share certificate. 
Ans: Face value

7. The value of share which is determined by demand and supply forces in the share market. 
Ans: Market Value

8. The policy of using undistributed profit for the business. 
Ans: Retained earnings

9. It is an acknowledgement of loan issued by company to depositor.
Ans: Deposit Receipt

10. A Dollar denominated instrument traded in USA. 
Ans: American Depository Receipt (A.D.R.)

11. The Depository Receipt traded in country other than USA.
Ans: Global Depository Recipient (G.D.R.)

12. Money raised by company from public for minimum 6 months to maximum 36 months. 
Ans: Public Deposits

13. Credit extended by the suppliers with an intention to increase their sales. 
Ans: Trade Credit

14. The credit facility provided to a company having current account with bank. 
Ans: Overdraft

3. Issue of Shares

1. Capital collected by way of issue of Equity and Preference shares. 
Ans:- Share Capital

2. Part of issued capital subscribed by investors. 
Ans:- Subscribed capital

3. Capital that will be collected only  at the time of winding up of a company.
Ans:– Reserve Capital

4. Highest bid price in Book Building method. 
Ans:-Cap price/ceiling price.

5. Offering of shares by a company to the public for the first time. 
Ans:- Initial public offer (IPO)

6. Subsequent issue of shares after an IPO. 
Ans:- Further Public Offer/ Follow on Public Offer (FPO)

7. Pre-emptive right given to existing Equity shareholders to subscribe to new issue of shares by company. 
Ans:- Rights Issue of shares

8. It is also called as ‘Capitalisation of Profits’. 
Ans:-  Bonus Shares

9. Appropriation of shares to an applicant.
Ans:- Allotment of shares

10. Committee set up to decide the formula for allotment of shares in case of over subscription.
Ans:- Allotment committee

11. Minimum amount to be collected from subscribers within thirty days of issue of prospectus. 
Ans:- Minimum subscription amount

12. Document which is a prima facie evidence of ownership of certain shares of a company. 
Ans:- Share certificate

13. Penal action taken by company on non-payment of calls.
Ans:-  Forfeiture of shares

14. Person to whom transferor is transferring the shares.
Ans:- Transferee

15. Transfer of shares due to operation of law.
Ans:- Transmission of shares


4. Issue of Debentures



1. Type of resolution needed to issue convertible debentures.
Ans:- Special resolution

2. Account to be created for redemption of debentures.
Ans:- Debenture Redemption Reserve

3. Institution appointed by company to protect the interest of debenture holders.
Ans:- Debenture Trustees

4. Period within which secured debentures should be redeemed.
Ans:- 10 Years

5. Type of debentures on which company has to create a charge on its assets.
Ans:- Secured Debentures

6. The document which contains terms and conditions agreed upon by the company and the Debenture trustees.
Ans:- Debenture Trust Deed

7. Time period within which the procedure for allotment of debenture is to be completed from the date of receipt of applications. 
Ans:- 60 Days

8. Period within which debenture certificate must be issued by a company.
Ans:-  6 months

9. Institution which redresses grievances of debenture holders.
Ans:- Debenture Trustee

10. Authority which has power to issue debentures.-
Ans:- Board of Directors

5. Deposits

1. A company which can accept deposits from its members, directors or their relatives not exceeding 100% of aggregate of paid up share capital and free reserves. 
Ans:- Private Company

2. Company which can accept deposits from public up to 35% of its paid-up share capital and free reserves.
Ans:- Government Company

3. Minimum tenure of a deposit.
Ans:- 6 month

4. Maximum tenure of a deposit.
Ans:- 36 month

5. Period within which a company has to create a charge on its tangible assets.
Ans:- Within 30 days of acceptance of deposits

6. Document issued by a company to invite its members to subscribe for its Deposits.
Ans: – Circular

7. ­Agreement between company and Deposit Trustee.
Ans:- Deposit Trust Deed

8. Account that can be used only for repaying deposits.
Ans: – Deposit Repayment Reserve Account

9. Time within which company has to issue deposit Receipt.
Ans:- Within 21 days from date of receipt of deposit

10. Book which contains details of deposits accepted or renewed.
Ans:- Register of Deposit

6. Correspondence with Members

1. Shares given free of cost to the existing equity shareholders
Ans:- Bonus Shares

2. Instrument for payment of  dividend
Ans:- Dividend Warrant

3. The shareholders to whom the bonus shares are issued 
Ans:- Equity Shareholders

4. The authority which recommends the rate of dividend
Ans:- Board of Director

5. An officer who comes into contact with all the members of the company through correspondence.
Ans:- Company Secretary

6. A special kind of cheque issued by a company on its banker to pay certain sum of money as dividend to its members.
Ans:- Dividend Warrant

7. Correspondence with Debentureholders

1. Return on investment in debentures.

2. Documentary evidence of holding the debentures.
Ans:-Debenture Certificate

3. Status of debenture holders.
Ans:- Creditors

4. Debentures which can be converted into equity shares.
Ans:- Convertible Debenture

5. The person who purchases debentures of the company.
Ans:- Debenture holders

6. An acknowledgement of debt issued by the company under its common seal.
Ans:- Debenture Certificate

7. Debentures whose name is mentioned in the Register of debenture holders.
Ans:- Registered  Debentures

8. Correspondence with Depositors

1. Return on investment on deposit.
Ans:- Interest

2. Instrument for payment of interest on deposit. 
Ans:- Interest Warrent

3. An acknowledgement of the fixed deposit accepted by a company.
Ans:- Fixed Deposit Receipt

4. Return of deposits on maturity date.
Ans:- Repayment of Deposit

5. Maximum period of deposits.
Ans:- 36 Months.

9. Depository System

1. This mode of holding securities may result in loss and theft of certificates.
Ans:- Physical mode

2. The organization which holds the securities in electronic mode.
Ans:- Depository

3. This system eliminates storing of certificates. 
Ans:- Depository

4. This system allows faster and easier transfer of securities.
Ans:– Depository

5. The oldest Depository of India.
Ans:- NSDL

6. The country where depository system started for the first time.
Ans:- Germany

7. The registered owner of securities.
Ans:- BO

8. The Agent of the Depository.
Ans:- DP

9. This process converts securities into electronic form from physical form.
Ans:- Demat

10. This process converts securities into physical form from electronic form.
Ans:- Remat

11. This means securities are without distinctive identity number.
Ans:- Fungibility

12. This is the unique code for security given in depository system.
Ans:– ISIN

10. Dividend and Interest

1. The return on investment paid to the shareholders of the company. 
Ans:- Dividend

2. The meeting where final dividend is declared.
Ans:- AGM

3. The company which has to intimate stock exchange about declaration of dividend.
Ans:- Listed Company

4. The shareholders who get dividend at a fixed rate. 
Ans:- Preferences Shareholder

5. The shareholders who get dividend at a fluctuating rate.
Ans:- Equity Shareholder

6. Request by shareholder in prescribed form for payment of dividend into shareholders bank amount. 
Ans:- Dividend Mandate

7. Number of days within which payment of dividend be completed by company, after its declaration.
Ans:- 30 days

8. Dividend declared between two AGMs.
Ans:- Interim Dividend

9. Dividend decided and declared by the Board.
Ans:- Interim Dividend

10. The return paid to the creditors by the company.
Ans:- Interest.

11. Financial Market

1. A market where people trade financial securities and derivatives at low transaction cost. 
Ans:- Financial Market

2. A market which provide long term funds.
Ans:- Capital Market

3. A market which provide short term funds.
Ans:- Money Market

4. A money market instrument used by bank when one bank faces temporary shortage of cash.
Ans:- Call Money / Notice Money

5. A bill which is issued by Reserve Bank of India on behalf of the Government of India.
Ans:- Treasury Bill

6. A market which exclusively deals with the new issue of securities.
Ans:- Primary market / New
               issue market

12. Stock Exchange

1. A specific place where trading of securities is arranged in an organized method.
Ans:- Share Market

2. The first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.
Ans:- Bombay stock exchange

3. A dealer in stock exchange who carries on trading of securities in his own name.
Ans:- Jobber

4. A speculator who expects the price of shares rise in the future.
Ans:- Bull