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XTRAMILE LEARNING

XTRAMILE LEARNING: Objectives Test


SECRETARIAL PRACTICE
Time: 1.5 Hrs. Max. Marks: 42
Note: (1) All questions are compulsory.
(2) Figures to the right indicate full marks for the questions.
(3) Figures to the left indicate question numbers.
(4) Answer to every question must be started on a new page.

Q.1. (A) Select the correct answer from the options given below and rewrite the
sentences: (5)[20]

1. Company pays taxes to Government on________.


(a) Sales (b) Profit (c) Production
2. shares are issued free of cost to existing equity shareholders.
(a) Equity (b) Right (c) Bonus
3. The sum of all __________ is Gross Working Capital.
(a) Current Liabilities (b) Current Assets (c) Total Assets
4. Debenture holders are of a company.
(a) Owner (b) Creditor (c Debtor
)
5. Dividend is paid first to
(c deferre
shareholders. ) d
(a) Equity (b)
preference
(B) State whether the following statements are True or False: (5)
1. Fixed Capital is also referred as Circulating Capital.
2. Share certificate is issued for partly or fully paid up shares.
3. Bonus Shares are issued free to the Equity Shareholders.
4. Debenture holders have right to vote at General Meeting of the Company.
5. Trade Credit is major source of long term finance.
(C) Find the odd one: (5)
1. Trade Credit, Overdraft, Cash Credit.
2. Authorized Capital, Equity Share Capital, Issued Capital, Paid up Capital.
3. Face Value, Market Value, Redemption Value.
4. Share Certificate, Debenture Certificate, ADR, Bond holder certificate.
5. Floor price, Cap price, Cut off price, Face Value
(D) Select the correct option from the bracket. (5)
Group ‘A’ Group ‘B’
(a Preference shares (1)
)
(b IPO (2)
)
(c (3) Debenture certificate
)
(d ESPS (4)
)
(e (5) Bonus Shares.
)
[Shares offered to Existing employees at discounted price, First Time Issue of
Shares, Debenture holder, Fluctuating rate of dividend, Shares offered to
public, Any Issue after Initial Public Offering, Fixed and preferential Dividend,
Shares offered to Existing Equity Shareholders]
Q.2. Explain the following terms / concepts (Any FOUR): [8]
1. Authorized Capital 2. Shares Certificate
3. Bonus issue 4. Ploughing back of profit
5. FPO 6. Trade Credit
Secretarial Practice 

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.

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