Business and Commerce MCQs

Question 1

Deferred shares can be issued by ________.

Accepted Answer

private company

Answer

public company

Answer

private company which is deemed to be a public

Answer

government company

Question 2

Which of the following companies may issue share warrants?

Accepted Answer

Public limited companies

Answer

Companies limited by guarantee

Answer

Private limited companies

Answer

Trust

Question 3

A bearer of a share warrant of a company is _____.

Accepted Answer

not a member of the company

Answer

a creditor of the company

Answer

a member of the company

Answer

a member subject to certain conditions

Question 4

Bank overdraft is a good source of finance for _________.

Accepted Answer

Short term

Answer

Medium term

Answer

Long term

Answer

Short and long term

Question 5

The most important economic function of new issue market is to ___________.

Accepted Answer

provide facilities for converting saving into investments

Answer

provide liquidity to securities

Answer

give proper direction to the flow of capital

Answer

give direction

Question 6

Which of the following are components of organized sector of stock exchange?

Accepted Answer

Investors in securities

Answer

Commercial banks

Answer

Financial institutions like LFC, IDBI

Answer

Other financial institutions

Question 7

Which of the following methods is not used for raising capital through the sale of new securities?

Accepted Answer

Stock exchange placing

Answer

By issue of prospectus

Answer

Rights issue

Answer

Private placing

Question 8

The most common method used for marketing of new securities is _________.

Accepted Answer

direct sale to public through prospectus

Answer

sale of existing shareholders

Answer

stock exchange placing

Answer

sale to biometers

Question 9

The first stock exchange was set up in India in __________.

Accepted Answer

Bombay

Answer

Calcutta

Answer

New Delhi

Answer

Chennai