Practice Test

Q1) Dividend on equity shares is _______. Show Answer

Q2) Preference shareholders get dividend on a ____ rate. Show Answer

Q3) A share is a ______ property. Show Answer

Q4) The main benefit of “Depository Receipt” is ability to raise more capital in _______ market. Show Answer

Q5) Equity shareholders are real and controllers of company. Show Answer

Q6) Preference shareholders do not have normal voting right. Show Answer

Q7) Retained earning is difficult and costly method of raising capital. Show Answer

Q8) Public deposit is a good source for long term financing. Show Answer

Q9) Providing loan to business is a primary function of bank. Show Answer

Q10) Financial institution, do not have any role in financing industrial firms. Show Answer

Q11) Dividend is paid on borrowed capital. Show Answer

Q12) Accumulated Dividend paid to a preference shareholder. Show Answer

Q13) Retained earnings are an external source of financing. Show Answer

Q14) Share capital is the __________ capital of a company. Show Answer

Q15) Debenture is the _________ capital of a company. Show Answer

Q16) Company deposits are similar to ________deposits in the bank. Show Answer

Q17) Shareholder is___________ of the company. Show Answer

Q18) Debenture holder is ________ of the company Show Answer

Q19) The_______ Government is controlling the public deposits of the companies. Show Answer

Q20) ____________share carry a fixed rate of dividend. Show Answer

Q21) Ploughing back of profit is a ____________ source of financing. Show Answer

Q22) ____________ Shareholder have voting rights. Show Answer

Q23) ______________ denotes a bundle of fully paid-up shares. Show Answer

Q24) A person contributing share capital is called as ____________. Show Answer

Q25) A person purchasing debenture is called as____________. Show Answer

Q26) Registered document of title to the shares is known as __________. Show Answer

Q27) ______________capital is the maximum authorized capital to be mentioned in capital clause. Show Answer

Q28) __________ capital is that part of nominal which is actually issued to the public Show Answer

Q29) __________ Capital is that part of issued capital which is not subscribed by the investors. Show Answer

Q30) ___________ Capital is that part of Subscribed capital which is actually called by the company. Show Answer

Q31) ____________ Capital is a part of called-up capital, which is actually paid by the members of company. Show Answer

Q32) ___________ Capital is a part of uncalled capital reserved to be called up only at liquidation of company. Show Answer

Q33) ___________ Preference shares gets arrears of dividend also. Show Answer

Q34) The shares which are redeemed after the expiry of a fixed period are called ___________ preference shares. Show Answer

Q35) The right of conversion from preference to equity is absence in case of ____________ preference shares. Show Answer

Q36) Preference shares repaid after fixed period is called ____________ preference shares. Show Answer

Q37) ____________ Debenture are issued by creating charge on the assets. Show Answer

Q38) ___________ Debenture are freely transferable by mere delivery. Show Answer

Q39) ____________ Debenture are most popular from of debenture in India. Show Answer

Q40) Only a ___________ company can accept or invite deposits from the public. Show Answer

Q41) Each company must issue _________ shares. Show Answer

Q42) If a shares of Rs. 10 is issued at Rs. 11, it is called issue at ___________. Show Answer

Q43) A share certificate must be signed by at least ____________ Directors. Show Answer

Q44) A share certificate should be delivered within ___________ months after the allotment of shares. Show Answer

Q45) Ploughing back is possible for _____________ companies. Show Answer

Q46) Share who receives dividend at a fixed rate is called _____________ shares. Show Answer

Q47) Debenture holders are ______________ of the company. Show Answer

Q48) ________ Debentures never repaid during lifetime of a company. Show Answer

Q49) ___________ Shares are can not be redeemed during lifetime of a company. Show Answer

Q50) Market value of ____________ enjoys capital appreciation. Show Answer

Q51) _____________ Shares are most suited to cautious investors . Show Answer

Q52) Shareholders are ___________ of the company. Show Answer

Q53) Section _________ of the companies Act deals with public Deposit. Show Answer

Q54) One who purchases debentures of a company is known as ________. Show Answer

Q55) Share Capital of Joint Stock Company actually taken by thepublic is known as _________ capital. Show Answer

Q56) A part of the capital which can be called only in the event of winding-up of the company is called ______ capital. Show Answer

Q57) Share Capital of a Joint Stock Company is ________ capital. Show Answer

Q58) Preference share entitled to arrears of dividend are known as ________ share. Show Answer

Q59) Equity share provide _______ term finance. Show Answer

Q60) Bonds are ________ capital. Show Answer

Q61) Depository Act was passed in ______. Show Answer

Q62) Depositors are ________ of the company. Show Answer

Q63) Deposits are ________ capital. Show Answer

Q64) A person who purchases shares of a company is known as _______. Show Answer

Q65) Provisions regarding borrowing powers of a company are mentioned in _______. Show Answer

Q66) Convertible debentures can be converted into ______. Show Answer

Q67) ________ capital is the part of subscribed capital which is actually called up by the company. Show Answer

Q68) _______ is the part of the called up capital which is actually paid by members. Show Answer

Q69) _______ is the part of the called up capital which is not being paid by members. Show Answer

Q70) ______ capital is that part of authorised capital which is actually issued to the public. Show Answer

Q71) ______ capital is that part of authorised capital which is not issued to the public Show Answer

Q72) Issue of shares to existing equity shareholders out of the retained earnings is called as _______. Show Answer

Q73) Share capital is a borrowed capital. Show Answer

Q74) A company generally issues the whole of its authorised capital Show Answer

Q75) A debenture has no right to vote in the general meeting Show Answer

Q76) Reserve capital cannot be called during the life of the company Show Answer

Q77) The market value of an equity share always equal to its face value Show Answer

Q78) Bonus shares are isssued out of the share capital of the company Show Answer

Q79) Preference shareholders have normal voting rights Show Answer

Q80) Equity shareholders gets dividend every year Show Answer

Q81) Interest on debenture depends on the profits of the company. Show Answer

Q82) Preference shareholders receive fluctuating rate of dividend Show Answer

Q83) Debenture holders gets regular dividend Show Answer

Q84) Debenture capital is a loan capital of the company Show Answer

Q85) Ploughing back of profits may lead to over capitalisation Show Answer

Q86) Ploughing back of profits increases the cost of raising finance Show Answer

Q87) A share certificate is a bearer document of title to the shares issued by the company Show Answer

Q88) Equity capital is also known as risky capital Show Answer

Q89) A debentureholder is debtors of the company Show Answer

Q90) Ploughing back of profits is an external source of finance Show Answer

Q91) Debenturehoders can participate in the management of the company. Show Answer

Q92) __________ formation has special significance in the management of joint stock company. Show Answer

Q93) The shareholders purchase shares of the company and supply necessary capital. It is a form of __________ capital. Show Answer

Q94) Retained earnings are __________ source of financing. Show Answer

Q95) __________ is a smallest unit in the total share capital of the company. Show Answer

Q96) A person who purchases shares of a company is known as __________ of the company. Show Answer

Q97) __________ of a share is mentioned in the Memorandum of Association. Show Answer

Q98) __________ is the price at which company sells its shares. Show Answer

Q99) __________ are residual claimants against the income or assets of the company. Show Answer

Q100) __________ participate in the management of their company. Show Answer

Q101) __________ shares are issued free of cost to existing equity shareholders. Show Answer

Q102) The holder of preference share has right to receive _____rate of divided. Show Answer

Q103) Accumulated dividend is paid to __________ preference shares. Show Answer

Q104) The holder of __________ preference shares have right to convert their shares into equity shares. Show Answer

Q105) The term debenture has come from the __________ word 'debere' which means to 'owe'. Show Answer

Q106) Convertible debentures are converted into __________ after a specific period. Show Answer

Q107) Debenture is a promise by company that it owes specified sum of money to holder of debenture on the due date of maturity as mentioned on the __________. Show Answer

Q108) A company has to appoint Debenture Trustee if it is offering debentures to more than __________ people. Show Answer

Q109) Debenture holders get fixed rate of __________ as return on their investment. Show Answer

Q110) ________is paid on borrowed capital. Show Answer

Q111) Company can accept deposits from public, minimum for __________ months. Show Answer

Q112) Company can accept deposits from public, maximum for __________ months. Show Answer

Q113) The holder of bond is __________ of the company. Show Answer

Q114) A depository receipt traded in __________ is called American Depository receipt. Show Answer

Q115) The benefit of Depository Receipt is ability to raise capital in __________ market. Show Answer

Q116) All functions of business are ultimately dependent on finance. Show Answer

Q117) A person can purchase only a limited number of shares. Show Answer

Q118) Unless dematerialized, each share has distinct number for identification. Show Answer

Q119) The shares of public limited company are freely transferable In the manner provided in the Articles of Association. Show Answer

Q120) Share s a fixed property of a shareholder. Show Answer

Q121) Equity shareholders enjoy fixed rate of dividend. Show Answer

Q122) Equity share capital is known as venture capital. Show Answer

Q123) Equity shareholders enjoy preferential right In respect of payment of dividend. Show Answer

Q124) Equity shareholders are described as 'shock absorber' when company has financial crisis. Show Answer

Q125) Equity shareholders can exercise their voting right by proxies. Show Answer

Q126) Residual claim means the last claim on the earnings of company. Show Answer

Q127) The preference shareholders are co-owners of the company but not controllers. Show Answer

Q128) Non-convertible preference shares can be converted Into equity shares. Show Answer

Q129) Debenture constitutes a long term debt. Show Answer

Q130) The term debenture has been defined clearly under Companies Act. Show Answer

Q131) Debentures must be listed with at least one recognised stock exchange. Show Answer

Q132) Debenture holders have right to vote at general meeting of the company. Show Answer

Q133) Debentures are mostly redeemable i.e. Payable at the end of some fixed period. Show Answer

Q134) The issue of unsecured debentures is now prohibited by the Companies Act, 2013. Show Answer

Q135) Bond holders are owners of the company. Show Answer

Q136) Deposits are either secured or unsecured loans offered to the company. Show Answer

Q137) Depository bank stores the shares on behalf of GDR holder. Show Answer

Q138) Cash credit is given against hypothecation of goods or any security. Show Answer

Q139) Financial institutions underwrite the issue of securities. Show Answer

Q140) Trade credit is major source of long term finance. Show Answer

Q141) Trade credit is not cash loan. Show Answer