Company Regulations Quiz

Play an AI-generated podcast conversation about this lesson

What type of notice must be given by the company to the transferee in the case of transfer of partly-paid shares?

Notice mentioning that the shares are fully paid up

Notice mentioning that the shares are partly paid up (correct)

Notice mentioning the dividend history of the shares

Notice mentioning the market value of the shares

Why must a company issuing deposits open a Deposit Repayment Reserve Account?

To use the funds for any company expenses

To repay depositors when needed (correct)

To invest the funds in the stock market

To pay dividends to shareholders

When does a company accepting deposits have to deposit an amount in the Deposit Repayment Reserve Account?

Anytime during the year

At the end of the financial year

Every 6 months

On or before 30th April every year (correct)

What types of financial instruments are used in the capital market?

Equity shares, preference shares, debentures, bonds, government securities, public deposits, etc. Signup and view all the answers

How do corporates use financial instruments in the capital market?

To solve problems of finance Signup and view all the answers

What type of funds are borrowed and lent in the Capital Market?

Both short-term and long-term funds Signup and view all the answers

What is the main difference between cash credit and cash loan?

Cash loan is for a fixed period, while cash credit has no fixed period. Signup and view all the answers

What is the key feature of discounting a bill of exchange with a bank?

Discounting a bill involves selling it to the bank for slightly less than its face value. Signup and view all the answers

Which type of financing allows the borrower to withdraw an amount up to a sanctioned limit?

Overdraft Signup and view all the answers

What determines the limit of cash credit that a borrower can withdraw?

The value of goods pledged or hypothecated Signup and view all the answers

Which type of financing charges interest on the actual balance outstanding?

Cash loan Signup and view all the answers

In what scenario would a drawer choose to discount a bill of exchange with a bank?

To receive immediate funds before the due date of the bill Signup and view all the answers

What is the practice of retaining a part of the profit during periods of high profit to be used in the future for meeting financial needs called?

Ploughing Back of Profit Signup and view all the answers

What is another term for 'retained profits' or 'retained earnings'?

Ploughing Back of Profit Signup and view all the answers

What is the primary purpose of 'ploughing back of profits' in a company?

To retain profits for future use Signup and view all the answers

Which of the following best describes the concept of 'self-financing' mentioned in the text?

'Ploughing Back of Profit' from retained earnings Signup and view all the answers

What rules govern the use of retained profits by a company?

Rules subject to certain conditions Signup and view all the answers

'Ploughing Back of Profit' can be described as:

'Self-financing' using retained earnings Signup and view all the answers

Company Regulations Quiz

Choose a study mode

Podcast

Questions and Answers