Give One Word or Phrase or Term (Weightage 5 Marks)
1. Introduction to Corporate Finance
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
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.
Ans:-Interest
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
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
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