Select the Correct Option from the Bracket (Weightage 5 Marks)
1. Introduction to Corporate Finance
Group ‘A’ | Group ‘B’ |
a) Financing decision | 1) __________________ |
b) __________________ | 2) Longer period of time. |
c) Investment decision | 3) __________________ |
d) __________________ | 4) Circulating capital |
e) Combination of various sources of funds | 5) __________________ |
(To have right amount of capital, Deploy funds in systematic manner, Fixed capital, Working capital, Capital structure)
Solution:
Group ‘A’ | Group ‘B’ |
a) Financing decision | 1) To have a right amount of capital |
b) Fixed capital | 2) Longer period of time. |
c) Investment decision | 3) Deploy funds in systematic manner. |
d) Working Capital | 4) Circulating capital |
e) Combination of various sources of funds | 5) Capital structu |
2. Sources of Corporate Finance
Group ‘A’ | Group B’ |
a) Equity shares | 1) ____________ |
b) ____________ | 2) Dividend at fixed rate |
c) Debentures | 3) ____________ |
d) ____________ | 4) Accumulated corporate profit |
e) Public Deposit | 5) ____________ |
(Fluctuating rate of dividend, Preference shares, Interest at fixed rate, Retained earnings, Short term loan)
Group ‘A’ | Group B’ |
a) Equity shares | 1) Fluctuating rate of Dividend |
b) Preference shares | 2) Dividend at fixed rate |
c) Debentures | 3) Interest at fixed rate |
d) Retained earnings | 4) Accumulated corporate profit |
e) Public Deposit | 5) Short term loan |
3. Issue of Shares
Group ‘A’ | Group “B” |
a) Public offer of shares | 1) ____________ |
b) ____________ | 2) Initial Public offer |
c) Rights Issue | 3) ____________ |
d) ____________ | 4) ESOS |
e) Operation of law | 5) ____________ |
(First time offer of shares, Shares offered to public, Shares offered to existing Equity shareholders, Shares offered to existing employees, Transmission of shares)
Solution:
Group ‘A’ | Group “B” |
a) Public offer of shares | 1) Shares offered to public |
b) First time offer of shares | 2) Initial Public offer |
c) Rights Issue | 3) Shares offered to existing Equity shareholders |
d) Shares offered to existing employees | 4) ESOS |
e) Operation of law | 5) Transmission of shares |
4. Issue of Debentures
Group ‘A’ | Group ‘B’ | ||
a) | Debenture Trustees | 1) | …………………………………………….. |
b) | ……………………………. | 2) | Charge on assets |
c) | Register of Debenture | 3) | …………………………………………….. |
d) | ……………………………. | 4) | Debenture certificate |
e) | No voting rights | 5) | …………………………………………….. |
Ans:-
|
|
a) Debenture Trustees | 1) Trust deed |
b) Secured debentures | 2) Charge on assets |
c) Register of Debenture | 3) Name of Debenture holders |
d) Issued within 6 month of allotment | 4) Debenture certificate |
e) No voting rights | 5) Debenture holders |
5. Deposits
Group ‘A’ | Group ‘B’ |
a) Government Company | 1) ___________________ |
b) ___________________ | 2) Deposits from members |
c) 36 months | 3) ___________________ |
d) ___________________ | 4) Charge on tangible assets |
e) Return of deposit | 5) __________________ |
(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)
Group ‘A’ | Group ‘B’ |
a) Government Company | 1) Deposit from public |
b) Private Company | 2) Deposits from members |
c) 36 months | 3) Maximum tenure of Deposit |
d) Secured Deposit | 4) Charge on tangible assets |
e) Return of deposit | 5) File on or before 30th June |
6. Correspondence with Members
Group ‘A’ | Group ‘B’ | ||
a) | Return on shares | 1) | …………………………………………….. |
b) | Capitalisation of Reserve Fund | 2) | …………………………………………….. |
c) | Correspondence | 3) | …………………………………………….. |
d) | ……………………………………. | 4) | Payment of Dividend Electronically. |
(Written communication, Bonus shares, Dividend, ECS)
Solution:
Group ‘A’ | Group ‘B’ | ||
a) | Return on shares | 1) | Dividend |
b) | Capitalisation of Reserve Fund | 2) | Bonus Shares |
c) | Correspondence | 3) | Written Communication |
d) | ECS | 4) | Payment of Dividend Electronically. |
7. Correspondence with Debentureholders
Group ‘A’ | Group ‘B’ | ||
a) | Return on Debentures | 1) | …………………………………………….. |
b) | Debenture certificate | 2) | …………………………………………….. |
c) | ……………………………. | 3) | Debentureholders |
d) | ……………………………. | 4) | Debenture |
e) | ……………………………. | 5) | Power to issue debentures |
( Debt capital, Board of Directors, Creditors, Issued within 6 months, Interest )
Solution:
Group ‘A’ | Group ‘B’ | ||
a) | Return on Debentures | 1) | Interest |
b) | Debenture certificate | 2) | Issued within 6 months |
c) | Creditors. | 3) | Debenture holders |
d) | Debt Capital | 4) | Debenture |
e) | Board of Directors | 5) | Power to issue debentures |
8. Correspondence with Depositors
Group ‘A’ | Group ‘B’ | ||
a) | Depositor | 1) | …………………………………………….. |
b) | Return on Deposits | 2) | …………………………………………….. |
c) | ……………………………. | 3) | Maximum Period of Deposits |
d) | Minimum Period of Deposits | 4) | …………………………………………….. |
( Interest, Creditor of the company, 36 months, 6 months )
Ans:
Group ‘A’ | Group ‘B’ | ||
a) | Depositor | 1) | .Creditor of the company. |
b) | Return on Deposits | 2) | .Interest.. |
c) | .36 months. | 3) | Maximum Period of Deposits |
d) | Minimum Period of Deposits | 4) | .6 months.. |
9. Depository System
Group ‘A’ | Group ‘B’ | |||
Dematerialization | 1) | …………………………………………….. |
| |
…………………………………… | 2) | DP |
| |
First depository of world | 3) | …………………………………………….. |
| |
CDSL | 4) | …………………………………………….. |
| |
(1999, Agent of Depository, Germany, physical to electronic)
Group ‘A’ | Group ‘B’ | ||
a) | Dematerialization | 1) | physical to electronic |
b) | Agent of Depository | 2) | DP |
c) | First depository of world | 3) | Germany |
d) | CDSL | 4) | 1999 |
(II)
Group ‘A’ | Group ‘B’ | ||
a) | First depository in India | 1) | …………………………………………….. |
b) | …………………………………… | 2) | Rematerialisation |
c) | Fungibility | 3) | …………………………………………….. |
d) | …………………………………… | 4) | ISIN |
(12 digit code, NSDL, Electronic to physical, No distinctive number)
Group ‘A’ | Group ‘B’ | ||
a) | First depository in India | 1) | NSDL |
b) | electronic to physical | 2) | Rematerialisation |
c) | Fungibility | 3) | No distinctive number |
d) | 12 digit code | 4) | ISIN |
10. Dividend and Interest
(I)
Group ‘A’ | Group ‘B’ | ||
a) | Dividendum | 1) | …………………………………………….. |
b) | Interest | 2) | …………………………………………….. |
c) | ……………………………. | 3) | Final Dividend |
d) | ……………………………. | 4) | Interim Dividend |
e) | Govt. Fund | 5) | …………………………………………….. |
( Creditors, IEPF, Latin term, At Board Meeting, At AGM )
Ans:-
Group ‘A’ | Group ‘B’ | ||
a) | Dividendum | 1) | Latin term |
b) | Interest | 2) | Creditors |
c) | At AGM | 3) | Final Dividend |
d) | At Board Meeting | 4) | Interim Dividend |
e) | Govt. Fund | 5) | IEPF |
(II)
Group ‘A’ | Group ‘B’ | ||
a) | Preference Shares | 1) | …………………………………….. |
b) | Equity Shares | 2) | …………………………………….. |
c) | Deposit holders | 3) | …………………………………….. |
d) | ……………………………. | 4) | Payment of Dividend |
e) | ……………………………. | 5) | Dividend Declared but not paid/claimed |
(Unclaimed/Unpaid Dividend, Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, Within 30 days)
Ans:-
Group ‘A’ | Group ‘B’ | ||
a) | Preference Shares | 1) | Fixed rate Dividend |
b) | Equity Shares | 2) | Dividend at a Fluctuating Rate |
c) | Deposit holders | 3) | Interest |
d) | Within 30 days | 4) | Payment of Dividend |
e) | Unclaimed/Unpaid Dividend | 5) | Dividend Declared but not paid/claimed |
(Unclaimed/Unpaid Dividend, Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, Within 30 days)
11. Financial Market
Group ‘A’ | Group ‘B’ | ||
a) | Money market | 1) |
|
b) | Zero risk instrument | 2) |
|
c) |
| 3) | Capital market |
d) |
| 4) | Secondary market |
(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Ans:-
Group ‘A’ | Group ‘B’ | ||
a) | Money market | 1) | Funds for short term |
b) | Zero risk instrument | 2) | Treasury Bill |
c) | Funds for long term | 3) | Capital market |
d) | Buying and selling of existing security | 4) | Secondary market |
12. Stock Exchange
1)
Group ‘A’ | Group ‘B’ | ||
a) | Regulator of capital market | 1) |
|
b) |
| 2) | Nifty |
c) | Jobber | 3) |
|
d) |
| 4) | Oldest Stock Exchange in the world. |
(London Stock Exchange, Index of NSE, SEBI, trades in securities in his own name)
Ans:-
Group ‘A’ | Group ‘B’ | ||
a) | Regulator of capital market | 1) | SEBI |
b) | Index of NSE | 2) | Nifty |
c) | Jobber | 3) | Trades in securities in his own name |
d) | London Stock Exchange | 4) | Oldest Stock Exchange in the world. |