Match the Pairs (Weightage 5 Marks)
1. Introduction to Corporate Finance
Group ‘A’ | Group ‘B’ |
a) Capital budgeting | 1) Sum of current assets |
b) Fixed capital | 2) Deals with acquisition and use of capital |
c) Working capital | 3) Fixed liabilities |
d) Capital structure | 4) Sum of current liabilities |
e) Corporate finance | 5) Fixed assets |
| 6) Investment decision |
| 7) Financing decision |
| 8) Deals with acquisition and use of assets |
| 9) Mix up of various sources of funds |
| 10) Product mix |
Solution :
Group ‘A’ | Group ‘B’ |
a) Capital budgeting | 1) Investment decision |
b) Fixed capital | 2) Fixed assets |
c) Working capital | 3) Sum of current assets |
d) Capital structure | 4) Mix up of various sources use of assets |
e) Corporate finance | 5) Deals with acquisition and use of capital |
2. Sources of Corporate Finance
Group ‘A’ | Group ‘B’ |
a) Equity Share Capital | 1) Agreement |
b) Debenture Trustees | 2) Capitalisation of Profit |
c) Preference Shareholders | 3) Bold Investor |
d) Debenture Certificate | 4) Venture Capital |
e) Bonus Shares | 5) Document of Ownership |
| 6) Capitalisation of Loan |
| 7) Safe Capital |
| 8) Instrument of Debt |
| 9) Trust Deed |
| 10) Cautious Investor |
Solution:
Group ‘A’ | Group ‘B’ |
a) Equity Share Capital | 4) venture Capital |
b) Debenture Trustees | 9) Trust Deed |
c) Preference Shareholders | 10) Cautious Investor |
d) Debenture Certificate | 8) instruments of debt |
e) Bonus Shares | 2) Capitalisation of profit |
3. Issue of Shares
Group ‘A’ | Group ‘B’ |
a) Death of member | 1. Forfeiture of shares |
b) Voluntary return of shares to company by member | 2. Book Building Method |
c) Price of shares mentioned in prospectus | 3. Offered to existing employees |
d) ESPS | 4. Surrender of shares |
e) Regret Letter | 5. Transmission of shares |
| 6. Non-allotment of shares |
| 7. Offered to existing Equity shareholders |
| 8. Transfer of shares |
| 9. Fixed price issue method |
| 10. Allotment of shares |
Solution:
Group ‘A’ | Group ‘B’ |
a) Death of member | 5. Transmission of shares |
b) Voluntary return of shares to company by member | 4. Surrender of shares |
c) Price of shares mentioned in prospectus | 9. Fixed price issue method |
d) ESPS | 3. Offered to existing employees |
e) Regret Letter | 6. Non-allotment of shares |
Match the pairs.
Group ‘A’ | Group ‘B’ |
a) Issued capital | 1) Non-payment of calls |
b) FPO | 2) Any issue after IPO |
c) Bonus shares | 3) Offered to existing employees |
d) Issued within two months of allotment of shares | 4) Capital offered to public to subscribe |
e) Forfeiture of shares | 5) Share certificate |
| 6) First time issue of shares |
| 7) Free shares issued to existing equity shareholders |
| 8) Maximum capital a company can raise |
| 9) Allotment Letter |
| 10) Operation of law |
Solution:
Group ‘A’ | Group ‘B’ |
a) Issued capital | 4) Capital offered to public to subscribe |
b) FPO | 2) Any issue after IPO |
c) Bonus shares | 7) Free shares issued to existing equity shareholders 3) Offered to existing employees |
d) Issued within two months of allotment of shares | 5) Share certificate |
e) Forfeiture of shares | 1) Non-payment of calls |
4. Issue of Debentures
Group ‘A | Group ‘B’ |
a) Debenture Trustees | 1) Power to issue debentures |
b) Debenture holders | 2) Protects interest of shareholders |
c) Charge on assets | 3) Secured debentures |
d) Board of Directors | 4) NCLT |
e) Debenture certificate | 5) No voting rights |
| 6) Unsecured debentures |
| 7) Protects interest of debenture holders |
| 8) Voting rights |
| 9) Proof of ownership of shares |
| 10) Issued within 6 months of allotment of debentures |
Solution:
Group ‘A’ | Group ‘B’ |
a) Debenture Trustees | 7) Protects interest of debenture holders |
b) Debenture holders | 5) No voting rights |
c) Charge on assets | 3) Secured debentures |
d) Board of Directors | 1) Power to issue debentures |
e) Debenture certificate | 10) Issued within 6 months of allotment of debentures |
5. Deposits
Group ‘A | Group ‘B’ |
a) Debenture Trustees | 1) Power to issue debentures |
b) Debenture holders | 2) Protects interest of shareholders |
c) Charge on assets | 3) Secured debentures |
d) Board of Directors | 4) NCLT |
e) Debenture certificate | 5) No voting rights |
| 6) Unsecured debentures |
| 7) Protects interest of debenture holders |
| 8) Voting rights |
| 9) Proof of ownership of shares |
| 10) Issued within 6 months of allotment of debentures |
Solution:
Group ‘A’ | Group ‘B’ |
a) Debenture Trustees | 7) Protects interest of debenture holders |
b) Debenture holders | 5) No voting rights |
c) Charge on assets | 3) Secured debentures |
d) Board of Directors | 1) Power to issue debentures |
e) Debenture certificate | 10) Issued within 6 months of allotment of debentures |
6. Correspondence with Members
Group ‘A’ | Group ‘B’ | ||
a) | Dividend Warrant | 1) | Instrument for payment of Interest |
b) | Return on Shares | 2) | Capitalisation of Building Fund |
c) | Bonus Shares | 3) | Electronic Clearing Service |
d) | ECS | 4) | Capitalisation of Reserve Fund |
e) | NEFT | 5) | National Electronic Fund Transfer |
6) | Dividend | ||
7) | Electronics Co-operative Society | ||
8) | National Electronic Fixed Transfer | ||
9) | Instrument for Payment of Dividend | ||
10) | Interest | ||
Solution:
Group ‘A’ | Group ‘B’ | ||
a) | Dividend Warrant | 9) | Instrument for Payment of Dividend |
b) | Return on Shares | 6) | Dividend |
c) | Bonus Shares | 4) | Capitalisation of Reserve Fund |
d) | ECS | 3) | Electronic Clearing Service |
e) | NEFT | 5) | National Electronic Fund Transfer |
7. Correspondence with Debentureholders
Group ‘A’ | Group ‘B’ | ||
a) | Debentureholder | 1) | Borrowed Capital |
b) | Interest on Debentures | 2) | Interest coupons |
c) | Convertible Debentures | 3) | Evidence of Loan |
d) | Debenture Certificate | 4) | Safe and secured investment |
e) | Investment in Debentures | 5) | Interest warrant |
f) | Redeemable Debentures | 6) | Conversion into Debentures |
g) | Debentures | 7) | Risky investment |
|
| 8) | Evidence of shares |
|
| 9) | Creditor |
|
| 10) | Conversion into equity shares |
|
| 11) | Redeemed after fixed period |
|
| 12) | Redeemed at winding up of company |
|
| 13) | Owner |
|
| 14) | Owned Capital |
Ans :
Group ‘A’ | Group ‘B’ | ||
a) | Debenture holder | 9) | Creditor |
b) | Interest on Debentures | 5) | Interest warrent |
c) | Convertible Debentures | 10) | Conversion into equity shares |
d) | Debenture Certificate | 3) | Evidence of Loan |
e) | Investment in Debentures | 4) | Safe and secured investment |
f) | Redeemable Debentures | 11) | Redeemed after fixed period |
g) | Debentures | 1) | Borrowed Capital |
8. Correspondence with Depositors
Group ‘A’ | Group ‘B’ | ||
a) | Depositors | 1) | Fixed |
b) | Rate of Interest on Deposits | 2) | Evidence of ownership |
c) | Deposit Receipt | 3) | Debtors |
| 4) | Creditors | |
5) | Evidence of deposit | ||
6) | Fluctuating | ||
Ans :
Group ‘A’ | Group ‘B’ | ||
a) | Depositors | 4) | Creditors |
b) | Rate of Interest on Deposits | 1) | Fixed |
c) | Deposit Receipt | 5) | Evidence of deposit |
9. Depository System
Group ‘A’ | Group ‘B’ | ||
a) | Bad Delivery | 1) | 1956 |
b) | Depository Act | 2) | A 12 digit number/code. |
c) | ISIN | 3) | Connects Government and Bank. |
d) | Depository participant | 4) | Second Depository in India. |
e) | CDSL | 5) | The Issuer Company. |
f) | Depository | 6) | Problem faced in physical mode. |
g) | Beneficial owner | 7) | A 10 digit number/code. |
8) | Connects Depository and Investor. | ||
9) | First Depository in the world. | ||
10) | Coustodian of securities in electronic form. | ||
11) | Problem faced in electronic mode. | ||
12) | 1996 | ||
13) | Government Organisation. | ||
14) | The Investor. | ||
Group ‘A’ | Group ‘B’ | ||
a) | Bad Delivery | 6) | Problem faced in physical mode. |
b) | Depository Act | 12) | 1996 |
c) | ISIN | 2) | A 12 digit number/code. |
d) | Depository participant | 8) | Connects Depository and Investor. |
e) | CDSL | 4) | Second Depository in India. |
f) | Depository | 10) | Coustodian of securities in electronic form. |
g) | Beneficial owner | 14) | The Investor. |
10. Dividend and Interest
(I)
Group ‘A’ | Group ‘B’ | ||
a) | Dividend | 1) | Equity Shareholders |
b) | Interest | 2) | Appropriation of profit. |
c) | Interim Dividend | 3) | Recommendation of Secretary. |
d) | Final Dividend | 4) | Registrar of company. |
e) | Fluctuating Rate of Dividend | 5) | Obligatory to pay. |
| 6) | Decided and Declared by the Board of Directors. | |
7) | Decided by Board; declared by Members. | ||
8) | Decided by President of India. | ||
9) | Company not allowed to pay. | ||
10) | Declared by Govt. of India | ||
Group ‘A’ | Group ‘B’ | ||
a) | Dividend | 2) | Appropriation of profit. |
b) | Interest | 5) | Obligatory to pay. |
c) | Interim Dividend | 6) | Decided and Declared by the Board of Directors. |
d) | Final Dividend | 7) | Decided by Board; declared by Members. |
e) | Fluctuating Rate of Dividend | 1) | Equity Shareholder |
(II)
Group ‘A’ | Group ‘B’ | ||
a) | Dividend | 1) | Must inform stock exchange about Dividend declaration |
b) | Interest | 2) | Creditors |
c) | IEPF | 3) | Registered Shareholders. |
d) | Unpaid Dividend Account | 4) | Balance of unpaid Dividend Transferred here. |
e) | Listed Company | 5) | Unregistered company. |
| 6) | Non-listed company. | |
7) | Unpaid/Unclaimed Dividend. | ||
8) | Balance of unpaid Bonus transferred here. | ||
9) | Must inform Government about Dividend declaration. | ||
10) | General Public. | ||
Ans:
Group ‘A’ | Group ‘B’ | ||
a) | Dividend | 3) | Registered Shareholders. |
b) | Interest | 2) | Creditors |
c) | IEPF | 4) | Balance of unpaid Dividend Transferred here. |
d) | Unpaid Dividend Account | 7) | Unpaid/Unclaimed Dividend. |
e) | Listed Company | 1) | Must inform stock exchange about Dividend declaration |
11. Financial Market
Group ‘A’ | Group ‘B’ | ||
a) | Financial market | 1) | Long term fund |
b) | Money market | 2) | New issue market |
c) | Primary market | 3) | Trading of commodities |
d) | Commercial paper | 4) | Short term fund |
5) | Trading of financial securities | ||
6) | Share market | ||
7) | Unsecured promissory note | ||
8) | Secured promissory note | ||
Group ‘A’ | Group ‘B’ | ||
a) | Financial market | 5) | Trading of financial securities |
b) | Money market | 4) | Short term fund |
c) | Primary market | 2) | New issue market |
d) | Commercial paper | 7) | Unsecured promissory note |
12. Stock Exchange
Group ‘A’ | Group ‘B’ | ||
a) | SEBI | 1) | Expects the price of shares rise in future. |
b) | Day Trading | 2) | Expects the price of shares fall in future. |
c) | Bull | 3) | Buying and selling of securities within the same trading day. |
d) | Bear | 4) | To protect the interest of investors in securities market. |
e) | BSE | 5) | Buying and selling of securities to particular investors. |
|
| 6) | One of the oldest stock exchange in India. |
|
| 7) | To protect the interest of companies in securities market. |
|
| 8) | Buying and selling of securities within a week. |
|
| 9) | Newest Stock Exchange in India. |
|
| 10) | One who invests in new issues of securities. |
Group ‘A’ | Group ‘B’ | ||
a) | SEBI | 4) | To protect the interest of investors in securities market. |
b) | Day Trading | 3) | Buying and selling of securities within the same trading day. |
c) | Bull | 1) | Expects the price of shares rise in future. |
d) | Bear | 2) | Expects the price of shares fall in future. |
e) | BSE | 6) | One of the oldest stock exchange in India. |