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Questions and Answers
The bond holders are ______ of the company.
The bond holders are ______ of the company.
creditors
Share capital refers to capital made up of Equity shares and ______ shares.
Share capital refers to capital made up of Equity shares and ______ shares.
Preference
Transfer of shares due to death, insolvency or insanity of member is called ______ of shares.
Transfer of shares due to death, insolvency or insanity of member is called ______ of shares.
Transmission
Voluntarily giving up of shares by a member due to inability to pay calls is called ______ of shares.
Voluntarily giving up of shares by a member due to inability to pay calls is called ______ of shares.
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Shares issued free of cost to existing Equity shareholders is called as ______ shares.
Shares issued free of cost to existing Equity shareholders is called as ______ shares.
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A legal instrument conveying the assets of a company to the Debenture trustees is called ______ Trust Deed.
A legal instrument conveying the assets of a company to the Debenture trustees is called ______ Trust Deed.
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Authority to create charge on company’s assets is with the ______ of Directors.
Authority to create charge on company’s assets is with the ______ of Directors.
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Return on investment on debenture is called ______.
Return on investment on debenture is called ______.
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______ participate in the management of their company.
______ participate in the management of their company.
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______ shares are issued free of cost to existing equity shareholders.
______ shares are issued free of cost to existing equity shareholders.
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The holder of preference share has a right to receive a ______ rate of divided.
The holder of preference share has a right to receive a ______ rate of divided.
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Accumulated dividend is paid to ______ preference shares.
Accumulated dividend is paid to ______ preference shares.
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Debenture holders are ______ of the company.
Debenture holders are ______ of the company.
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______ is paid on borrowed capital.
______ is paid on borrowed capital.
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Retained earnings are a ______ source of financing.
Retained earnings are a ______ source of financing.
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A depository receipt traded in ______ is called an American Depository receipt.
A depository receipt traded in ______ is called an American Depository receipt.
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After issuing a prospectus, the next step is to ______ account.
After issuing a prospectus, the next step is to ______ account.
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Before holding a board meeting for allotment, the company must first ______ with money.
Before holding a board meeting for allotment, the company must first ______ with money.
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Before creating a charge on assets, a company must first ______.
Before creating a charge on assets, a company must first ______.
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Before filing a return of deposit, a company must first issue a(n) ______.
Before filing a return of deposit, a company must first issue a(n) ______.
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Prior to the entries in the register of deposits, it's important to obtain a ______.
Prior to the entries in the register of deposits, it's important to obtain a ______.
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The application for shares precedes the ______ of shares.
The application for shares precedes the ______ of shares.
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An applicant becomes a ______ after the shares are allotted.
An applicant becomes a ______ after the shares are allotted.
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Before a board resolution, a ______ must first be held.
Before a board resolution, a ______ must first be held.
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First, the company must make a ______ to the dividend account.
First, the company must make a ______ to the dividend account.
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After the transfer, funds might be directed to an ______ dividend account if unclaimed.
After the transfer, funds might be directed to an ______ dividend account if unclaimed.
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Eventually, any unclaimed dividends are moved to the ______.
Eventually, any unclaimed dividends are moved to the ______.
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The company must first intimate the Stock Exchange about the upcoming ______.
The company must first intimate the Stock Exchange about the upcoming ______.
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Next, The Stock Exchange must be informed of the declaration of ______.
Next, The Stock Exchange must be informed of the declaration of ______.
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BDI bank should approach ______ for registering as DP.
BDI bank should approach ______ for registering as DP.
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The size of a business affects its ______ capital requirements.
The size of a business affects its ______ capital requirements.
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If KM Financial wants to offer Debenture Trustee services they should apply to ______ for getting registered.
If KM Financial wants to offer Debenture Trustee services they should apply to ______ for getting registered.
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A key step is deciding on the ______ of the dividend.
A key step is deciding on the ______ of the dividend.
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TT Ltd.Co should be registered with ______ as it wants to issue an IPO.
TT Ltd.Co should be registered with ______ as it wants to issue an IPO.
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Companies will generally first authorize any changes in the ______ of association.
Companies will generally first authorize any changes in the ______ of association.
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A Company needs to be listed on a stock exchange to sell its ______ through the stock exchange.
A Company needs to be listed on a stock exchange to sell its ______ through the stock exchange.
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______ is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country.
______ is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country.
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A company should appoint a Debenture ______.
A company should appoint a Debenture ______.
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A company should create a ______ on its tangible assets when issuing secured debentures.
A company should create a ______ on its tangible assets when issuing secured debentures.
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The maximum tenure of secured debentures is ______ years.
The maximum tenure of secured debentures is ______ years.
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A company should issue a Debenture certificate within 6 months of the ______ of the debenture.
A company should issue a Debenture certificate within 6 months of the ______ of the debenture.
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A company with a net worth less than 100 crores cannot accept deposits from the ______.
A company with a net worth less than 100 crores cannot accept deposits from the ______.
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A company cannot accept public deposits which mature after ______ months.
A company cannot accept public deposits which mature after ______ months.
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A company should issue a deposit receipt within ______ days from the date of receipt.
A company should issue a deposit receipt within ______ days from the date of receipt.
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An eligible public company can accept deposits in joint names but not more than ______ names.
An eligible public company can accept deposits in joint names but not more than ______ names.
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Study Notes
Question Bank Study Notes
- Finance is related to money and money management.
- Finance is the management of the company's monetary affairs.
- Corporate finance deals with the acquisition and use of capital by business corporations to the government.
- Company taxes refer to any kind of fixed assets (e.g., land).
- Authorised capital refers to the excess of current assets over current liabilities.
- Working capital refers to any kind of fixed assets.
- Manufacturing industries need a substantial amount of funds to acquire fixed assets.
- Population growth can provide opportunities for business expansion for manufacturers.
- Gross working capital is the sum of all current assets.
- Capital structure is a mix of various financing sources.
- Debenture is a smallest unit in total share capital.
- Depository Receipts allow companies to raise capital internationally.
- Bondholders are residual claimants to the company's income or assets.
- Equity shareholders participate in company management.
- Bonus shares are issued to existing equity shareholders at no cost.
- Preference shares have the right to receive a fixed rate of dividends.
- Accumulated dividends are paid to cumulative preference shares.
- Redeemable preference shares can convert to equity shares.
- Debenture holders are creditors of the company.
- Interest is paid on borrowed capital.
- Convertible debentures can be converted into equity shares.
- Retained earnings are an internal source of financing.
- Company letters of allotment are sent to applicants who have been given shares by the company.
- Share certificates are proof of ownership of shares.
- Calls should be spaced at least 14 days apart.
- Shares can be forfeited for non-payment of calls, or voluntarily surrendered.
- Transmission of shares occurs due to legal events like death or insolvency.
- Debenture trustees protect the interests of debenture holders.
- Debentures are a form of security.
- Debenture redemption reserve is to protect the interests of debenture-holders(s).
- Debenture certificates need to be issued within a certain period after allotment.
- Deposit is a short-term loan.
- Eligible public companies can obtain deposits from members or directors.
- Company advertisements or circulars are issued when inviting deposits.
- Deposits must be filed with the Registrar of Companies.
- Debenture holders are creditors of the company, and their interests are protected by debenture trustees.
- Dividend payout can be made within a specified number of days (e.g., 30).
- Dividend payment needs the approval of the board of directors and shareholder approval.
- Dividend needs to be paid within a certain period.
- Interim dividends are paid to shareholders based on previous periods' earnings.
- Equity shares are given the least priority when paying dividends.
- Dividend warrant is a cheque containing dividend payment.
- Initial Public Offering (IPO) is the first time a company offers shares to the public.
- Bonus shares are given as gifts to existing shareholders.
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Description
Test your knowledge on the fundamentals of finance and company law. This quiz covers key concepts related to shares, debentures, and capital structure within a corporation. Ideal for students studying finance or business management.
