Competitive Exams: Commerce MCQs (Practice-Test 37 of 99)

  1. Which one of the following statements is correct?

    1. Cooperative organizations are based on the principle of ‘One Share One Vote’

    2. A public limited company does not invite capital from the public

    3. Most of the public enterprises in India are organized on the pattern of private limited companies

    4. Registration of partnership is compulsory

  2. Match List I with List II and select the correct answer using the codes given below the lists:

    List-I (Type of organization) List-II (Important characteristic)
    1. Sole Trader

    2. Partnership

    3. Cooperatives

    4. Public Limited Company

    1. Larger number of risk takers

    2. Betterment of the weaker sections

    3. Contractual relationship

    4. Unlimited liability

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
      • 4
      • 2
      • 3
      • 1
      • 1
      • 3
      • 2
      • 4
  3. The liability of shareholders of a public limited company is limited to the

    1. paid up value of shores

    2. extent of their private assets

    3. nominal value of shares

    4. amounts called up

  4. The ‘Instrument of transfer’ is used at the time of

    1. issue of new shares to the public by the company

    2. issue of debentures. To the public by the company

    3. sale of shares by a member

    4. conversion of shares into stock

  5. Match List I with List II and select the correct answer using the codes given below the lists

    List-I List-II
    1. Dividend

    2. Interest

    3. Bonus shares

    4. Premium on share price

    1. Accumulated Reserves

    2. Always paid whenever the firm makes a profit

    3. Can be used for issue of Bonus shares

    4. Can be paid out of Capital

    5. Divisible part of profit

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 5
      • 4
      • 5
      • 4
      • 1
      • 3
      • 5
      • 1
      • 2
      • 4
      • 2
      • 5
      • 1
      • 3
  6. Which one of the following statements is correct?

    1. A prospectus is a notice, circular, advertisement other intimation inviting offers from the public for the purchase of goods of a company

    2. The amount of minimum subscription is mentioned in the Memorandum of Association

    3. All the directors must sign the Prospectus

    4. Investors are not duly protected against any misstatement in a Prospectus

  7. Match List I with List II and select the correct answer using the codes given below the lists

    List-I (Post held in the company) List-II (Duties responsibility)
    1. Director

    2. Company Secretary

    3. Managing Director

    4. Statutory auditor

    1. In charge of statutory and administrative duties

    2. Reports to the management

    3. Reports to the shareholders

    4. Reports to the Board of Directors

    5. Trustee of Company's assets

    • A
    • B
    • C
    • D
      • 2
      • 4
      • 5
      • 1
      • 5
      • 1
      • 2
      • 3
      • 5
      • 1
      • 4
      • 3
      • 3
      • 2
      • 5
      • 4
  8. Which one of the following statements correctly explains the ‘Doctrine of Indoor management’

    1. Every person dealing with the company is presumed to have read and understood the contents of the company's Memorandum and Articles of Association

    2. It is aimed at protecting outsiders while dealing with the company

    3. If a person enters into a contract with the company which is contrary to the provisions of the Memorandum and articles of Association, he will not have any right under such a contract

    4. It is a rule that seeks to protect the company while dealing with the outsiders

  9. Match List I (Types of securities) with List II (Special features) and select the correct answer using the codes given below the lists

    List-I List-II
    1. Blue Chip

    2. Deep Discount Bonds

    3. Commercial Paper

    4. Debentures

    1. Issued by a private limited company

    2. Highly profitable investments in a stock exchange

    3. Issued by financially sound companies

    4. Small investments yielding a big sum after a long-term

    5. Issued by companies having large reserves

    6. Issued in lieu of loans

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 6
      • 1
      • 4
      • 6
      • 5
      • 2
      • 3
      • 1
      • 5
      • 2
      • 4
      • 3
      • 6
  10. A public limited company CANNOT issue

    1. Debentures

    2. Deferred shares

    3. Participating Preference shares

    4. Redeemable Preference shares

  11. Which one of the following statements is correct?

    1. Merchant bankers shall furnish a Due Diligence certificate while forwarding a draft prospectus/letter of offer to Registrar of Companies

    2. Employee stock option scheme is a compulsory scheme on the part of the company to encourage employees to have a greater sense of participation in the activities of the company

    3. When a private limited or a closely held or an unlisted public company desires to get listed in a Stock Exchange by disinvestment, it may do so

    4. A company issuing shares to the public has no right to select a Merchant

    Banker to manage the issue

  12. Which of the following are the methods of marketing new issues of securities

    1. Listing of securities

    2. Jobbers and brokers

    3. Private placement of securities

    4. Privileged subscriptions

    Select the correct answer using the codes given below

    Codes:

    1. 1 and 2

    2. 2 and 3

    3. 3 and 4

    4. 1, 2, 3 and 4

  13. Consider the following institutions

    1. Securities Exchange Board of India

    2. Board for Industrial and Financial Reconstruction

    3. EXIM bank

    4. National Stock Exchange

    The correct chronological sequence of the establishment of these institutions is

    1. 4, 1, 2, 3

    2. 3, 1, 2, 4

    3. 3, 2, 1, 4

    4. 4, 2, 1, 3

  14. Vertical combination helps to

    1. achieve economy by combining allied activities

    2. survive during the times of depression

    3. fight a common enemy

    4. add new product lines

  15. A part dealing with restrictive trade practices of the MRTP Act was amended in 1991. This Amendment is applicable

    1. only to private sector companies

    2. only to public sector companies

    3. to both public and private limited companies

    4. both public and private sector companies