Share Capital

Bachelor of Commerce (B Com)

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This set of Corporate Regulations Multiple Choice Questions & Answers (MCQs) focuses on Share Capital

Q1 | _________have fixed denomination
  • Share
  • Stock
  • Both a & b
  • None of the above
Answer: Share
Q2 | ________resolution should be passed by the company to offer shares to outsiders
  • Special resolution
  • Ordinary resolution
  • C.G
  • None of the above
Answer: Special resolution
Q3 | Company must pass ________ for reducing its share capital
  • O.R
  • S.R
  • C.G permission
  • None of the above
Answer: S.R
Q4 | Court order the company to add _________ after reducing its share capital
  • And reduced
  • Ltd
  • Both a or b
  • None of the above
Answer: And reduced
Q5 | For reducing its share capital it should give notice to whom?
  • Debtors
  • Creditors
  • Both a & b
  • None of the above
Answer: Creditors
Q6 | Reduction & diminution is done under which sec.
  • 100 & 94
  • 94 & 100
  • 100 & 96
  • 96 & 100
Answer: 100 & 94
Q7 | Which of the following can be used for buy back of shares
  • Free reserves
  • Securities premium
  • Proceeds of fresh issue of shares
  • All of the above
Answer: All of the above
Q8 | Buy back by board resolution can only be upto _________
  • 15
  • 10
  • 25
  • 20
Answer: 10
Q9 | Buy back should be less than or equal to _________% of total paid up capital
  • 25
  • 30
  • 35
  • 40
Answer: 25
Q10 | In case of buy back debt equity ratio should be ________
  • 1:2
  • 2:1
  • 3:1
  • 1:3
Answer: 2:1
Q11 | Every buy back shall be completed within _____ month from the date of passing the S.R.
  • 6
  • 8
  • 10
  • 12
Answer: 12
Q12 | __________companies are permitted to buy back its shares
  • Insolvent
  • Solvent
  • Both a & b
  • None of the above
Answer: Solvent
Q13 | Buy back securities should be physically destroyed within ________days
  • 7
  • 17
  • 21
  • 28
Answer: 7
Q14 | After buy back company can’t issue the same kind of shares for ________months
  • 6
  • 12
  • 18
  • 24
Answer: 6
Q15 | Within 30 days of completion of buy back company shall file the details with whom_________
  • Registrar
  • SEBI
  • Both a & b
  • None of the above
Answer: Registrar
Q16 | If buy back is made from free resources then what should be created __________
  • Debenture Redemption Reserve
  • Capital Redemption Reserve
  • Statutory liquid Ratio.
  • None of the above
Answer: Capital Redemption Reserve
Q17 | The premium amount that can be charged as per companies Act.
  • 10%
  • 15%
  • 20%
  • None of these
Answer: None of these
Q18 | A company to issue sweat equity shares must pass a.
  • Special resolution
  • Ordinary resolution
  • Unanimous resolution
  • None of these
Answer: Special resolution
Q19 | The notice offering right shares must allow the members ________to exercise theiroption to accept, reject or renounce it
  • 10 days
  • 14 days
  • 15 days
  • 20 days
Answer: 15 days
Q20 | The company must deliver share certificate within ___________ if the shares allotted bycompany.
  • 2 months
  • 3 months
  • 4 months
  • none of these
Answer: 3 months
Q21 | The company must deliver share certificate within ___________ if the shares applied fortransfer.
  • 3 months
  • 2 months
  • 5 months
  • none of these
Answer: 2 months
Q22 | Share warrants can be issued with the prior approval of the _____________
  • Company law board
  • Dept of company affairs
  • Registrar
  • None
Answer: Registrar
Q23 | Stamp duty to be paid at the time of issue of share certificate is.
  • Nominal
  • High
  • Very high
  • None of these
Answer: Nominal
Q24 | Stamp duty to be paid at the time of issue of share warrant.
  • Nominal
  • High
  • Very high
  • None of these
Answer: Very high
Q25 | ______ specifies the time limit with in which share certificate is to be delivered
  • sec 110
  • sec 111
  • sec 112
  • sec 113
Answer: sec 113
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