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Questions and Answers
What type of notice must be given by the company to the transferee in the case of transfer of partly-paid shares?
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?
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?
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?
What types of financial instruments are used in the capital market?
How do corporates use financial instruments in the capital market?
How do corporates use financial instruments in the capital market?
What type of funds are borrowed and lent in the Capital Market?
What type of funds are borrowed and lent in the Capital Market?
What is the main difference between cash credit and cash loan?
What is the main difference between cash credit and cash loan?
What is the key feature of discounting a bill of exchange with a bank?
What is the key feature of discounting a bill of exchange with a bank?
Which type of financing allows the borrower to withdraw an amount up to a sanctioned limit?
Which type of financing allows the borrower to withdraw an amount up to a sanctioned limit?
What determines the limit of cash credit that a borrower can withdraw?
What determines the limit of cash credit that a borrower can withdraw?
Which type of financing charges interest on the actual balance outstanding?
Which type of financing charges interest on the actual balance outstanding?
In what scenario would a drawer choose to discount a bill of exchange with a bank?
In what scenario would a drawer choose to discount a bill of exchange with a bank?
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?
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?
What is another term for 'retained profits' or 'retained earnings'?
What is another term for 'retained profits' or 'retained earnings'?
What is the primary purpose of 'ploughing back of profits' in a company?
What is the primary purpose of 'ploughing back of profits' in a company?
Which of the following best describes the concept of 'self-financing' mentioned in the text?
Which of the following best describes the concept of 'self-financing' mentioned in the text?
What rules govern the use of retained profits by a company?
What rules govern the use of retained profits by a company?
'Ploughing Back of Profit' can be described as:
'Ploughing Back of Profit' can be described as:
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