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This set of Corporate Regulations Multiple Choice Questions & Answers (MCQs) focuses on Prospectus
Q1 | ________are required to file prior to making second and subsequent issue of securitiesin case shelf prospectus are filed:
- Information memorandum
- Information articles
- Form 13
- None of the above
Q2 | Information memorandum + shelf prospectus together constitutes ________
- Memorandum
- Articles
- Prospectus
- None of the above
Q3 | Validity period of information memorandum is _______
- 1 year
- 2 years
- 3 years
- 4 years
Q4 | _________ prospectus were issued in order to test the market before finalizing issue size/price.
- Deemed
- Shelf
- Red herring
- None of the above
Q5 | What is the punishment for directors, promoters and other persons for Misrepresentationin prospectus
- Fine 50,000
- 2 years imprisonment
- Both of the above
- None
Q6 | When a private company is converted into public company. In which form it should be
- Schedule III
- Schedule IV
- Schedule VI
- None of these
Q7 | A statement in lieu of prospectus is required to be issued
- by all companies which issue shares or debentures
- by public companies when shares are issued among friends and relatives
- by private companies as they do not issue shares to the public
- by all companies
Q8 | A company must inform the registrar about redemption of preference shares with in
- 21 days
- 15 days
- 30 days
- None of the above
Q9 | Share premium amount is treated as the __________ capital of a company
- issued
- Reserve
- Subscribe
- None of the above
Q10 | A company can create ‘reserve capital’ by passing__________
- an ordinary resolution
- a special resolution
- a board resolution
- None of the above
Q11 | The capital which is part of the uncalled capital of the company which can be called uponly in the event of its winding up it is called
- Issued capital
- Nominal capital
- Authorised Capital
- Reserve capital
Q12 | XYZ Co. is a holding of XZ Pvt. Company. XZ Co. issued deferred shares. The issue isvalid or void
- Valid
- Void
- Situation does not arise
- None of these
Q13 | What is the maximum period for redemption in case of preference shares issued by thecompany?
- 10 years
- 15 years
- 20 years
- None of these
Q14 | Capital redemption reserve must be used for issue of
- Fully paid bonus shares
- Fully paid equity shares
- Preference shares
- None of the above.
Q15 | Part of the issued capital taken by public is called ___________
- Subscribed
- Called - up capital
- Un called capital
- Paid up capital
Q16 | Part of authorized capital which is offered by the company for subscription.
- Subscribed
- Issued
- Un called
- called up
Q17 | Stamp duty on registration of the company is payable based on _________capital.
- Nominal
- Authorised
- Both a & b
- None
Q18 | Deferred shares are also known as ____________ shares
- Founders
- Equity
- Preference
- None
Q19 | _________ Preference shares carry the right to cumulate the dividends
- Converted
- Cumulative
- Nonconverted
- None
Q20 | Paying back of capital is called
- Redemption
- Conversion
- Participation
- None
Q21 | Premium amount on the securities are transferred to ________account
- Securities premium
- Reserve fund
- Capital Reserve
- None
Q22 | ____are the shares issued by the company to it employees or directors for considerationother than cash
- Bonus
- Sweat
- Right
- None of the above
Q23 | Cumulative preference share holders have voting right if dividends are in arrears for years
- 1
- 2
- 3
- 4
Q24 | _______ form is to be find in case of variation rights of share holders
- 23
- 19
- 18
- 20
Q25 | _________ is an aggregate of fully paid share that have been legally consolidated.
- Share
- Stock
- Both a & b
- None of the above