Q. 1. A. Select the proper option from the options given below and rewrite the sentences:
(1) The _________ capital remains in business almost permanently.
(a) fixed
(b) working
(c) borrowed
(2) A company must issue ________ shares.
(a) preference
(b) bonus
(c) equity
(3) If a share of Rs. 100 is issued at Rs. 110, it is to be issued at ________
(a) par
(b) profit
(c) premium
(4) The dividend is calculated and paid in ___________ capital.
(a) authorised
(b) subscribed
(c) paid-up
(5) An institution which regulates and controls the activities of the stock exchange is called _____________
(a) NSE
(b) BSE
(c) SEBI
(B) Match the correct pairs of words from group 'A' and group 'B'.
Group A | Group B |
(a) Retained profits. | (1) Share warrant holder |
(b) Small depositors | (2) Borrowed capital |
(c) Dividend coupon | (3) Deposits less than Rs. 25000 |
(d) Returns on shares | (4) Interest |
(e) Bear | (5) Expects rise in price of security. |
| (6) Ploughing back of profit |
| (7) Expects fall in price of securities. |
| (8) Deposits less than Rs. 20,000. |
| (9) Share certificate holder |
| (10) Dividend |
(C) Write a word / term/ phrase which can substitute each of the following statements. [5]
(1) The basic principles of business activities that aims at profit.
Ans. Profit maximization
(2) The 'Depository Receipt' traded in the country, other than U.S.A.
Ans. Global Depository Receipts. [GDR]
(3) The authority who can issue debentures.
Ans. Board of Directors.
(4) The organisation which acts as an intermediary between investors and depositories.
Ans. Depository Participant
(5) Instrument of payment of interest.
Ans. Interest Warrant.
Q. 2. Distinguish between the following (Any Three)
Q. 3. Write notes on the following. (Any Three)
Q. 4. State, with reasons, whether the following statements are True or False. (Any Three)
Q. 5. Answer the following (Any Two)