Practice Test

Q1) A company can buy-back Show Answer

Q2) Equity shares can be bought back Show Answer

Q3) If equity shares have been bought back out of free reserves, amount equal to the face value of equity shares bought back should be transferred to Show Answer

Q4) On buyback of shares Show Answer

Q5) A company may purchase its own shares out of ? Show Answer

Q6) Which of the following is not a free reserve for the purpose of buyback of shares Show Answer

Q7) No company shall purchase its own shares unless the amount paid on buy-back is of less than or equal to 25% of the Show Answer

Q8) Buy-back of equity shares in any financial year shall not exceed 25% of its Show Answer

Q9) On buyback of shares, there is a reduction in the share capital to the extent of the Show Answer

Q10) A buy-back of 10% of the total paid-up equity capital and reserves of the company Show Answer

Q11) No company shall purchase its own shares unless the amount paid on buy-back is of less than 25% per cent of the total Show Answer

Q12) The buy-back of equity shares in any financial year shall not exceed twenty-five per cent of its total Show Answer

Q13) The Micro Corporation Ltd. is authorized to issue 1,00,000 shares of equity shares. It had issued 30,000 shares. It has bought back 5,000 shares. As a result to these transactions. The no. of shares i) in authorized share capital ii) in issued share capital will be Show Answer

Q14) No company shall purchase its own shares unless the amount paid on buy-back is of less than ___ per cent of the total paid-up capital and free reserves of the company. Show Answer

Q15) Buy-back of equity shares in any financial year shall not exceed ___ per cent of its total paid-up equity capital in that financial year. Show Answer

Q16) On buyback of shares, there is a reduction in the share capital to the extent of the ____ value of the shares bought back. Show Answer

Q17) Buyback of shares leads to _______in the earnings per share (EPS). Show Answer

Q18) No buy-back of any kind of shares shall be made out of the proceeds of an earlier issue of the same kind of shares. Show Answer

Q19) No company shall purchase its own shares unless the buy-back is authorized by its _____. Show Answer

Q20) No company shall purchase its own shares unless a special resolution has been passed in _____ meeting of the company authorizing the buy-back. Show Answer

Q21) A buy-back of ____ per cent or less of the total paid-up equity capital and reserves of the company can be authorized by the Board; and no special resolution need be passed in a general meeting. Show Answer

Q22) Every buy-back shall be completed within ____ months from the date of passing the special resolution. Show Answer

Q23) Where a company buys-back its own securities, it shall extinguish and physically destroy the securities so bought-back within _____ days the last date of completion of buy-back. Show Answer

Q24) The buy-back of shares may be from the existing security-holders on a ______ basis. Show Answer

Q25) The buy-back of shares may be from the ___ market Show Answer

Q26) The buy-back of shares may be from ___ lots. Show Answer

Q27) If the buy back is at a discount, the amount of discount is credited to __________ A/c Show Answer

Q28) While investment Allowance Reserve ______ a free reserve, Investment Allowance reserve (Utilised) ______ a free reserve. Show Answer

Q29) The buy back of shares has to be authorised by articles of association. Show Answer

Q30) After buy back of shares, the debt-equity ratio should not exceed 2:1. Show Answer

Q31) Buy back of shares is just the opposite of raising capital through the issue of shares. Show Answer

Q32) Buy back has to be complete within 10 months from the date of passing the special resolution. Show Answer

Q33) On buy-back of shares by the company, there is reduction in the share capital Show Answer

Q34) On buy-back of shares by the company, there is reduction in the share capital to the extent of price paid for the share bought back. Show Answer

Q35) Buy-back of Equity shares can be made out of the proceeds of an earlier issue of Preference shares. Show Answer

Q36) No company shall purchase its own shares unless the ratio of the debt owed by the company is equal to the capital and itsfree reserves after such buy-back. Show Answer

Q37) Only fully paid shares can be bought back. Show Answer

Q38) A company cannot buy back the shares issued to employees of the company under a scheme of stock option. Show Answer

Q39) Equity shares can bought back out of security premium account balance. Show Answer

Q40) If equity shares have been bought back out of security premium, there is no need to make any transfer to Capital Redemption Reserve. Show Answer

Q41) Equity shares can be bought back only out of the proceeds of subsequent fresh issue of preference shares. Show Answer

Q42) Capital redemption reserve account can be utilized for issuing partly paid bonus shares. Show Answer

Q43) Where a company completes a buy-back of its shares, it shall not make a rights issue of the same kind of shares within a period of six months. Show Answer

Q44) Where a company completes a buy-back of its shares, it can make a bonus issue of the same kind of shares even within a period of six months. Show Answer

Q45) If any actual profit realized in cash on sale of fixed asset or investment is directly credited to Capital Reserve, it is taken as free reserve. Show Answer

Q46) Buyback of shares decreases earnings per share (EPS) of the company. Show Answer

Q47) Buyback must be authorised by Show Answer

Q48) A company may purchase its own shares out of - Show Answer

Q49) A company can buyback _____. Show Answer

Q50) The premium paid on buyback should be provided out of _______. Show Answer

Q51) Buyback shall be completed within ____ from sanction. Show Answer

Q52) To comply with the obligations under Buyback the company must open ____. Show Answer

Q53) The debt equity ratio should not exceed, after buyback Show Answer

Q54) The company must destroy the certificate after buyback within ____. Show Answer

Q55) The wipro corporation Ltd. Is authorised to issue 1,00,000 equity shares. It has issued 30,000 shares.it has bought back 5,000 shares. As a result of these transactions the no. of shares (i) authorised share capital (ii) and issued share capital will be Show Answer

Q56) Buyback of equity shares is governed by _____. Show Answer

Q57) No company shall purchase its own shares unless amount to be paid on buyback is of less than 25% of the Show Answer

Q58) Only _____ shares can be buyback. Show Answer

Q59) On buyback of shares, there is a reduction in the share capital to the extent of the Show Answer

Q60) The shares bought back should be ______. Show Answer

Q61) The company going for buyback must file Solvency Declaration with _____ Show Answer

Q62) Buyback refers to ______. Show Answer

Q63) If the buyback of equity shares is not out of divisible profit, there is no need to transfer any amount to _____ Show Answer

Q64) The objective of buyback of equity shares is _____. Show Answer

Q65) In case of buyback at discount the amount of discount is transferred to ___ Show Answer

Q66) For buyback, a company should open an escrow account with _____. Show Answer

Q67) The reserve which is not a free reserve for the purpose of buyback of share ___. Show Answer

Q68) Capital Redemption Reserve can be utilised for ____ Show Answer

Q69) Before buyback the company shall file with the Registrar and SEBI _____ Show Answer

Q70) The amount not collected by shareholders should be shown as ____. Show Answer

Q71) Buyback must be authorised by Show Answer

Q72) Sections ________ of companies governing buyback of shares. Show Answer

Q73) After completion of buyback, buyback return must be filed with ______ Show Answer

Q74) The time interval between two buyback of shares should not be less than _______. Show Answer

Q75) Board of directors can approve buyback upto _____. Show Answer