Question Bank XII SP 24-25 PDF

QUESTION BANK XII SP 24-25 Q.1 CORRECT THE UNDERLINED WORDS AND REWRITE THE FOLLOWING SENTENCES (4) 1\. [Working] capital refers to capital invested in fixed assets. Ans: Fixed capital 2\. [Registered] debentures are not recorded in the register of company. Ans: bearer 3\. [Issued] capital is...

QUESTION BANK XII SP 24-25 Q.1 CORRECT THE UNDERLINED WORDS AND REWRITE THE FOLLOWING SENTENCES (4) 1\. [Working] capital refers to capital invested in fixed assets. Ans: Fixed capital 2\. [Registered] debentures are not recorded in the register of company. Ans: bearer 3\. [Issued] capital is the maximum capital which a company can raise by issuing shares. Ans: Authorised 4\. Minimum tenure of deposits is months. Ans: 6 5\. Dividend is declared and approved by shareholders in [extra ordinary] general meeting. Ans: Annual general 6\. Company has to get approval of [directors] for conversion of debentures into equity shares. Ans: share holders 7\. [DP] is the custodian of securities in the electronic form. Ans: depository 8\. [Final] dividend is paid between two annual general meeting. Ans: interim 9\. [SEBI] regulates money supply and implements its monetary policy. Ans: RBI Q.2 COMPLETE THE SENTENCES (4) 1\. The oldest stock exchange in India is the [Bombay stock exchange] 2\. An already existing securities are traded in [secondary market.] 3\. If dividend remains unpaid for a period of 7 years the company, transfer the amount to [Investors Education] [and Protection Fund(IEPF)] 4\. The first depository of India is [NSDL.] 5\. Depositors are entitled to receive [Interest] at fixed rate. 6\. A company must issue debenture certificate within months of allotment of debentures. 7\. A company cannot issue debentures to more than 500 people without appointing a [Debenture Trustee]. 8\. Dividend is recommended by [Board of Directors]. 9\. Company cannot accept or renew deposits repayable on [demand.] 10\. Debentures Trustees redress the grievances of [Debenture holders.] 11\. Authority to create charge on company's assets is with [Debenture Trustees or Deposit Trustees] 12\. When applications received are more than the number of shares offered, it is called as [over subscription.] 13\. The first Industrial policy was declared in the year [1948.] 14\. The process of converting raw material into finished goods is called [production cycle.] Q.3 FIND THE ODD ONE (3) 1\. Treasury bill, shares, certificate of deposits Ans: Shares 2\. BSE, NSE, SEBI Ans: SEBI 3\. Depository, interest, dividend Ans: Depository 4\. Dividend, Depositor, Deposit receipt Ans: Dividend 5\. Debenture trustee, Trust deed, shareholders Ans: Shareholders 6\. Land and building, Plant and machinery, cash Ans: Cash 7\. Dividend, Retained earnings, Ploughing back of profit Ans: Dividend Q.4 STUDY THE FOLLOWING CASE / SITUATION AND EXPRESS YOUR OPINION (9) 1\. Mr.P has recently got his B.Sc degree. He has enrolled for a course in securities market. As a new student of this subject, he has few queries as follows a\. Does a company need to be listed on stock exchange to sell its securities through the stock exchange. Ans: Yes, It should be listed. b\. What is the term used for referring to a stock exchange's ability to reflect the economic conditions of a country. Ans: The term is "Economic Barometer" c\. What is the term which refers to the functions of stock exchange as a provider of ready market for sale and purchase of security. Ans: The term is " Liquidity" 2\. Gold company ltd declares a dividend of Rs.10/- per shares for F.Y 2018-19 a\. Is company under default, if dividend was not paid within 30 days of its declaration. Ans: Yes, the company is under default. b\. Is company right in transferring the unpaid dividend to its Debentures Reserve Account. Ans: No, company cant do it. c\. Does the company have to transfer the amount of unpaid dividend to IEPF after 30 days. Ans: No, Its not transferred to IEPF after 30 days. 3\. Red Tube limited has made a demand on its shareholders to pay the balance unpaid amount of Rs. 20/- per share (having face value ofRs.100/-) held by them. The company has sent letter asking the shareholders to pay the money to its bankers within the specified time. a\. Are the shareholders liable to pay Rs.20/- for shares held by them. Ans: Yes, they should pay it. b\. Name the letter sent by the company to its shareholders asking them to pay Rs. 20/-. Ans: Company will send "call letter" c\. What happens if a shareholder fails to pay the money within specified time? Ans: Company can forfeit shares of defaulters. 4\. Apple Company Ltd. is an eligible Public Company. It plans to raise secured deposits from the public. Please advise its Board on the following. a\. Does the company need to get shareholder's approval for accepting deposits? Ans: Yes, company should get approval of share holders. b\. Does the company have to appoint a Debenture Trustee? Ans: Yes, company should appoint Debenture Trustees. c\. Within what period should the company create a charge on it's assets? Ans: it should be created within 30 days. 5\. Rose limited Company proposes to issue debentures to the public to raise funds. After discussion, the BOD have decided to issue Secured, Redeemable, Non-Convertible debentures with a tenure of 10 years. Please advise the board on the following matters: a\. should the company appoint Debenture Trustee? Ans: Yes, company should appoint debenture Trustees. b\. Should company create a charge on its assets? Ans: Yes, company should create charge on its assets. c\. Can the tenure of debentures be less than ten years? Ans: Yes, it can be less than 10 years.