WorksheetsSecretarial Practice Test 1
Total questions: 60
Worksheet time: 34mins
Manufacturing industries have to invest ................. amount of funds to acquire fixed assets
huge
less
minimal
none of the above
Planning of capital requirement is done by (a)
Treasury bills
Short term debt
Long term debt
A smooth flow __________ of is needed so that salaries of employees are paid on time, loans are cleared on time, raw material is purchased whenever required, sales promotion of existing products is carried out smoothly and new products can be launched effectively
financial planning
long term funds
corporate finance
Find the odd one
Land and Building,
Plant and Machinery
Cash
Furniture & Fixture
________ shares carry dividend at fixed rate.
Equity
Shares with differential rights
Preference
Company has to pay ................. to government.
Dividend
Taxes
Interest
It refers to the network/system for the subsequent sale and purchase of securities.
(a)
When securities is issued to selected mature and sophisticated institutional investors as opposed to general public it is called (a) .
Preference shareholders have
Preferential right as to dividend only
Preferential right in the management
Preferential right as to repayment of capital at the time of liquidation of the company
Preferential right as to dividend and repayment of capital at the time of liquidation of the Company
The primary market provides the life-blood to any financial system in general, and to the capital market in particular.
True
False
The floor price or the final price shall not be less than the face value of the specified securities.
True
False
Who are the real owners of a company?
Government
Board of Directors
Equity shareholders
Preference sharejolders
When a private company first sells shares of stock to the public, this process is known as an (a) .
The capital of a company is divided into units which are called :
Debenture
Share
Stock
Bond
Shareholders receive from the company :
Interest
Profit
Commission
Dividend
Which shareholders have a right to receive the arrears of dividend from future profits :
Redeemable Preference Shares
Participating Preference Shares
Convertible Preference Shares
Cumulative Preference Shares
Preference shareholders have
Preferential right as to dividend only
Preferential right in the management
Preferential right as to repayment of capital at the time of liquidation of the company
Preferential right as to dividend and repayment of capital at the time of liquidation of the Company
In public issue, the shares are alloted at a stated price.
True
False
The shares on which there is no pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such shares are called :
Equity Share
Non-cumulative preference share
Non-convertible preference share
Non-participating preference share
The issuers may issue securities in the domestic market only.
True
False
The value of share which is written on the share certificate.
(a)
Working Capital stays in business almost permanently
True
False
The process of converting raw material into finished goods is called (a) .
When the population is increasing at high rate, certain manufacturers find this as an opportunity to ................. business.
close
expand
contract
A document of title of ownership of shares.
(a)
Equity share capital is known as venture capital.
True
False
Under .................. method, issue price of shares is based on bidding.
Fixed Price
Bonus Issue
Book Building
Rights Issue
The gap between two calls should not be less than .................. .
21 days
One month
14
6 months
Bonus Shares are issued at a discounted price to the Equity shareholders
True
False
Authorised capital is mentioned in capital clause of Memorandum of Association
True
False
.................. are offered to permanent employees, Directors and Officers of a company.
Bonus Shares
Rights Issue
ESOS
Debentures
Pre-emptive right given to existing Equity shareholders to subscribe to new issue of shares by company
(a)
Highest bid price in Book Building method.
(a)
Company can .................. shares on non-payment of calls.
Surrender
Allot
Forfeit
The sum of all ................. is gross working capital.
expenses
current assets
current liabilities
.................. refers to any kind of fixed assets.
Authorized capital
Issued Capital
Fixed Capital
A company issued 50,000,12% preference shares of Rs.100 each. Company received applications for 70,000 shares. This will be known as (a) of shares.
A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:
(a) ₹ 12,000
(b) ₹ 1,20,000
(c) ₹ 12,00,000
(d) None of these
A firm stocking on heavy inventory calls for higher level for __________.
working capital
long term capital
huge funds
Capital market is a market for _________ instruments
short term debt
long term debt
medium term
The benefit of Depository Receipt is ability to raise capital in ................. market.
National
Local
International
Company can accept deposits from public, maximum for ................. months.
12
24
6
36
Find the ODD one
Debentures
Public Deposit
Bonds
Retained Earnings
Find ODD one
Floor Price
Cap Price
Cut-off price
Face Value
Find the ODD one
ESOS
Sweat Equity
Rights Shares
ESPS
Transfer of shares due to operation of law.
Transfer of shares
Surrender of shares
Transmission of shares
Document which is a prima facie evidence of ownership of certain shares of a company
(a)
Capital that will be collected only at the time of winding up of a company.
Subscribed Capital
Issued Capital
Reserve Capital
Find the ODD one
Fixed Capital
Capital Structure
Working Capital
Match the pair
Corporate Finance
Deals with acquisition and use of capital
Financing decision
Financial institutions and banks cater to the working capital requirement of business.
True
False
The business dealing in luxurious products will require huge amount of working capital.
True
False
Investment decision
To have right amount of capital
Deploy funds in systematic manner
___________ refers to assessment of financial requirement and arranging sources of capital
Capital Assessment
Financial Plan
Capital Budgeting
A business firm needs fund to ________ it’s working capital needs
work out
arrange
finance
A growing company needs funds _________ to support large scale operations.
huge
continuously
short term
The sum of all ................. is gross working capital.
expenses
current assets
current liabilities
Return of allotment signed by a director is filed with registrar within .......days of allotment
25
30
45
60
Overdrafts only allow you to withdraw the money from your account, it doesn’t allow you to withdraw more.
TRUE
FALSE
