SP Objectives_1 3
SP Objectives_1 3
SP Objectives_1 3
Q.1. (A) Select the correct answer from the options given below and rewrite the
sentences: (5)[20]
Q.3. Study the following cases / situations and express your opinion (Any TWO): [6]
1. XLR Ltd. Company is newly incorporated public company and wants
to raise capital by selling equity shares to the public. The Board of
Directors are considering various options for this. Advise the Board
on the following matters:
a. What should the company offer – IPO or FPO?
b. Can the company offer Bonus shares to raise its capital?
c. Can the company enter into Underwriting Agreement?
2. Ms. Shabina owns 1000 shares while Ms. Sakina owns 5000 shares of
ABC Ltd. The company has asked all his shareholders to pay the
balance unpaid amount of Rs 20. Ms. Shabina pays the full money
demanded by the company. Ms. Sakina who is in bad financial
position is unable to pay any money.
a. Can Company Forfeit the Shares of Ms. Shabina?
b. Can Company Forfeit the Shares of Ms. Sakina?
c. Can Ms. Shabina and Ms. Sakina Transfer their shares?
3. The Management of BMC wants to determine the size of Working Capital
a. Being a public Transport service provider, will it need more or
less Fixed capital?
b. Being a public Transport service provider, will it need more or
less Working capital?
c. Give one example of Public Utility Service you come across on day-to-day
basis.
Q.4. Justify the following statements (Any TWO): [8]
1. Fixed Capital stays in the business almost permanently.
2. The Firm has multiple choices of sources of financing.
3. Preference shares get first priority in payment of dividend.
4. A member of public company can transfer shares.