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business
essentials business law
Business Law 2nd Edition Tejpal Sheth - Solutions
Premium amount on the securities are transferred to account.(i) securities premium (iii) capital reserve(ii) reserve fund (iv) none of these
Paying back of capital is called(i) Redemption. (iii) Participation.(ii) Conversion. (iv) None of these.
_________ preference shares carry the right to cumulate the dividends.(i) Convertible (iii) Non-converted(ii) Cumulative (iv) None of these
Stamp duty on registration of the company is payable based on capital.(i) nominal (iii) either (i) or (ii)(ii) authorised (iv) none of these
Part of authorised capital which is offered by the company for subscription is .(i) subscribed (iii) un-called(ii) issued (iv) called-up
Part of the issued capital taken by public is called .(i) Subscribed capital (iii) Un-called capital(ii) Called-up capital (iv) Paid-up capital
Capital redemption reserve must be used for the issue of(i) fully paid bonus shares. (iii) preference shares.(ii) fully paid equity shares. (iv) none of the above.
Share premium amount is treated as the capital of a company.(i) issued (iii) subscribe(ii) reserve (iv) none of the above
A company must inform the registrar about redemption of preference shares within(i) 21 days. (iii) 30 days.(ii) 15 days. (iv) None of the above.
For calculating the number of members in a private company, joint holders will be treated as .(i) 1 (iii) 3(ii) 2 (iv) 4
Which of the following cannot become a member of a company?(i) Partnership firm. (iii) State Government.(ii) Foreigner. (iv) Central Government.
Which of the following is a right of the members of a company?(i) Right to have a share (iii) Right to appoint director(ii) Right to appoint auditor (iv) All the above
If a company wants to place shares to brokers, they should be given a maximum of as brokerage commission.(i) 3% (iii) 1.5%(ii) 2% (iv) none of these
In case of debentures,maximum underwriting commission will be(i) 3% (iii) 2.5%(ii) 4% (iv) none of these
In case of shares,maximum underwriting commission will be(i) 2% (iii) 5%(ii) 3% (iv) none of these
A company cannot pay underwriting commission unless it is authorised by its .(i) Articles (iii) Both (i) & (ii)(ii) Memorandum (iv) None of the above
The minimum application money should be of nominal value as per SEBI guidelines.(i) 25% (iii) 40%(ii) 30% (iv) none of these
The minimum application money should be of nominal value.(i) 5% (iii) 2%(ii) 3% (iv) none of these
Write down the rights available to debenture holders. (Ref. Para-20.52)
What are the various kinds of debentures? (Ref. Para-20.51)
What is debenture? (Ref. Para-20.50)
When can a company issue duplicate share certificate? State the procedure for this purpose. (Ref. Para-20.49)
Explain the difference between share and share certificate. (Ref. Para-20.48)
What should be the content of a share certificate? (Ref. Para-20.47)
What is a share certificate? (Ref. Para-20.47)
Write short notes on transmission of shares. (Ref. Para-20.46)
What rights are available to the nominee on death of a shareholder? (Ref. Para-20.45)
What is meant by nomination of shares? (Ref. Para-20.45)
What remedies are available to the aggrieved party when the transfer of shares is wrongly refused by a company? (Ref. Para-20.43)
Explain the procedure for transfer of shares. (Ref. Para-20.44)
Write down any five rights available to a group of members.
Discuss the rights of members. (Ref. Para-20.41)
On redemption of preference shares, a person ceases to be a member of a company. Comment. (Ref. Para-20.40)
How does the membership of a person terminate? (Ref. Para-20.40)
Can a minor become member of a company? (Ref. Para-20.39)
Who can become member of a company? (Ref. Para-20.38)
Discuss the modes of acquiring membership of a company. (Ref. Para-20.37)
A company is not allowed to purchase its own shares. Is it a correct statement? (Ref. Para-20.36)
What do you mean by the term ‘buy-back’? Explain the legal provisions relating to buy-back. (Ref. Para-20.36)
What are calls in advance? What will be the effect of calls in advance? (Ref. Para-20.35)
What will bethe effect of non-payment of calls? (Ref. Para-20.34)
What is calls on shares? What are the requirements of valid calls? (Ref. Para-20.32,20.33)
Issue of further share capital should first be made to existing shareholders. Comment. (Ref. Para-20.31)
What are the provisions regarding further issue of share capital? (Ref. Para-20.31)
Write down the steps to issue bonus shares. (Ref. Para-20.30)
A company can exercise lien any time. Comment. (Ref. Para-20.29)
What do you understand by surrender of shares? (Ref. Para-20.28)
What is the effect of forfeiture? (Ref. Para-20.27)
When and how shares may be forfeited? (Ref. Para-20.25,20.26)
Distinguish between shares and stock. (Ref. Para-20.24)
Write short notes on stock certificate. (Ref. Para-20.23)
What are the requirements for issue of shares at discount? (Ref. Para-20.22)
The amount of securities premium account can be utilised for any purpose.Comment. (Ref. Para-20.21)
Can a company issue shares at premium? (Ref. Para-20.20)
What do you understand by diminution of capital? (Ref. Para-20.19)
Explain the procedure for reduction of capital. (Ref. Para-20.18)
Can a company reduce its capital? If so, what are the methods of reduction of capital? (Ref. Para-20.17)
State the legal provisions relating to alteration of share capital of a company. (Ref. Para-20.16)
Write a short note on brokerage. (Ref. Para-20.15)
Define underwriting. As per Companies Act, what is maximum percentage of underwriting paid by a company? (Ref. Para-20.14)
What is return of allotment? When is a company required to file return of allotment? (Ref. Para-20.13)
What are the conditions required to be complied with by a public company before allotment of shares? (Ref. Para-20.10,20.11)
What is meant by allotment of shares? (Ref. Para-20.9)
How are voting rights available to various types of shareholders? (Ref. Para-20.8)
Preference share holders can never have voting right. Comment. (Ref. Para-20.8)
When and which company can issue equity with differential voting right? (Ref. Para-20.7)
Out of which sources can a company redeem preference shares?
When can a company issue redeemable preference shares? (Ref. Para-20.6)
A company can issue irredeemable preference shares. Comment. (Ref. Para-20.5)
Preference shares are always presumed to be cumulative. Comment. (Ref. Para-20.5)
What are the different kinds of share which a company can issue under Companies Act, 2013?
Explain the term ‘equity shares’ and ‘preference shares’?
Write a short note on equity shares.
Define the term ‘share’ and explain its characteristics.
What does shares signify in a company?
Define shares.
Write the difference between called up capital and uncalled capital.
Explain reserve capital.
Explain the various terms used in reference of capital under Companies Act, 2013. (Ref. Para-20.1)
Which document is/are alterable in the case of a company?(i) Article of Association; (iii) Prospectus;(ii) Memorandum of Association; (iv) Both (i) and (ii)
The date of opening of the subscription list means the beginning of the ________from the day of the issue of prospectus.(i) 5th; (iii) 10th;(ii) 3rd; (iv) 20th
Because of misrepresentation in the prospectus, an expert will be criminally liable.(i) yes (ii) No
When there is any untrue statement in the prospectus. The shareholders who were a subscriber to the memorandum can sue the company(i) yes (ii) No
When there is an untrue statement in the prospectus. The shareholders who subscribed in the secondary market can sue the company(i) yes (ii) No
_________ prospectus were issued in order to test the market before finalizing issue size/price.(i) Deemed; (iii) Red herring;(ii) Shelf; (iv) None of these
Validity period of shelf prospectus is _______(i) 1 year; (iii) 3 years;(ii) 2 years; (iv) 4 years
Information memorandum + shelf prospectus together constitutes________________(i) Memorandum; (iii) Prospectus;(ii) Articles; (iv) None of these
________are required to file prior to making second and subsequent issue of securities in case shelf prospectus are filed:(i) Information memorandum; (iii) Form PAS 3;(ii) Information articles; (iv) None of these
_________ prospectus were issued in case where securities were issued in stages.(i) Deemed; (iii) Red herring;(ii) Shelf; (iv) None of these
_______includes an engineer, valuer, accountant(i) Expert; (iii) Auditor;(ii) Promoter; (iv) Director
_______are the prospectus issued instead of full prospectus.(i) Abridged prospectus; (iii) Shelf prospectus;(ii) Statement in lieu; (iv) Red herring prospectus.
Which of the following are not required for issuing a prospectus?(i) Private company; (iii) Sweat equity issue;(ii) In case of right issue; (iv) All these.
Under which section, the definition of prospectus is given?(i) 2 (30) (iii) 2 (34)(ii) 2 (32) (iv) 2 (70)
When there is an untrue statement in a prospectus, who can sue?(i) Applicant under IPO; (iii) Purchaser from shareholder;(ii) Purchaser from stock exchange; (iv) Any person
Prospectus is required to be issued when issue is for employees under employee stock option scheme(i) yes (ii) No
Prospectus is not required to be issued when sweat equity shares are issued to directors and employees(i) yes (ii) No
Prospectus is required to be issued when right issues are made(i) yes (ii) No
A private company need not issue prospectus.(i) yes (ii) No
_____ is the charter of a company.(i) Memorandum; (iii) Both(ii) Articles; (iv) None of these.
Ultra-vires loans granted by the company are(i) Void; (iii) Valid;(ii) Voidable; (iv) None of these.
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