Give One Word or Phrase or Term (Weightage 5 Marks)
1. Introduction to Corporate 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.
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.
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
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.
3. Status of debenture holders.
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
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.
3. This system eliminates storing of certificates.
4. This system allows faster and easier transfer of securities.
5. The oldest Depository of India.
6. The country where depository system started for the first time.
7. The registered owner of securities.
8. The Agent of the Depository.
9. This process converts securities into electronic form from physical form.
10. This process converts securities into physical form from electronic form.
11. This means securities are without distinctive identity number.
12. This is the unique code for security given in depository system.
10. Dividend and Interest
1. The return on investment paid to the shareholders of the company.
2. The meeting where final dividend is declared.
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.
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
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.
4. A speculator who expects the price of shares rise in the future.