QUESTION BANK FOR SYJC APPLICATION BASE TEST (ABT)

SUBJECT: SECRETARIAL PRACTICE

Q1. Correct the underlined word and rewrite the following sentences.

1.Equity shares get dividend at fixed rate. Ans : Fluctuating

2.Debentureholders are owners of the company. Ans : Creditors

3.Finance is needed to pay dividend to debenture holders. Ans : Interest

4.Minimum tenure of deposits is 36 months. Ans : 6 Months

5.Electronic mode of holding securities is risky. Ans : Physical

6.NSE is the oldest market in Asia. Ans : BSE

7.Dividend must be paid within 60 days of its declaration. Ans : 30 Days

8.Interest is paid to shareholders. Ans : Dividend

9.FPO refers to offering of shares to the public at first time. Ans : IPO

10.Letter of allotment is sent to applicants when no shares are allotted to them.

Ans: Letter of regret

Q.2 Complete the sentences.

1.Transfer of shares due to death of member is called __________. Ans : Transmission of shares

2.The two parties involved in transfer of shares are transferor and ________. Ans: Transferee

3.The largest and most modern stock exchange in India is _________. Ans : NSE

4.Payment of Interim Dividend needs to be authorized by _________. Ans : Board of directors

5.The Indian depository act was passed in the year _______. Ans : 1996

6.When there is boom in economy, sales will __________. Ans : Increases

7.Depository receipt traded in a country other than USA is called _________. Ans : GDR

8.Dividend is recommended by __________. Ans : Board of directors

9.The meeting at which final dividend is approved is __________. Ans : Annual General Meeting

10.The capital which is use for purchasing fixed assets __________. Ans : Fixed Capital
Q.3 Find the Odd One.

1.Share Certificate, Debenture Certificate, ADR. Ans : ADR

2.Debentureholders, Shareholders, Bondholders Ans : Shareholders

3.Bonus Shares, Right Shares, ESOS. Ans : ESOS

4.NSE, DP, BSE. Ans : DP

5.Final Dividend, Interim Dividend, Interest. Ans : Interest

6.CRISIL, SEBI, CARE. Ans : SEBI

7.Dividend warrant, Interest Warrant, Demat. Ans : Demat

8.DRF, RRF, PPF. Ans : PPF

9.Floor Price, Cap Price, Face Price. Ans : Face Price

10.Deposit Trustee, Deposit Trust Deed, Special Resolution. Ans : Special Resolution

Q.4 Study the following case / situation and express your opinion.

1.The balance sheet of a Manish Company for the year 2021-22 reveals equity shares capital

Of Rs.2500000 and retained earnings of Rs.5000000?

A. Is the company Financially Sound?

Ans : Yes. Since the company has a sufficient amount of capital

B. Can the retained earning be converted into Capital?

Ans : Yes , the retained earnings are converted into capital.

C.What type of Source retained earnings is?

Ans: Internal Source of finance.

2.TRI Limited. Company is newly incorporated public company and wants to raise capital by

Selling equity shares to the public. The board of Directors are considering various options for this.

Advise the board on the following matters.

A.What should the company offer -IPO or FPO?

Ans: IPO

B. Can the company offer bonus shares to raise its capital?

Ans : No, Company cannot offer bonus shares to raise its capital.
C.Can the Company enter into underwriting Agreement?

Ans : Yes , Company can enter into underwriting agreement by paying them commission.

3.Mrs.Minal wishes to open a Demat Account in her name.

A. Can she open the account going to Mumbai office of NSDL?

Ans: No, Mrs.Minal cannot open a demat account by going to Mumbai office of NSDL.

She has to open a demat account with a depository participant.

B. Is she required to pay for opening of account and its maintenance?

Ans. Yes.Mrs.Minal has to pay.

C.Does she have to send the shares to respective company for demating?

Ans: No, She doesn’t have to send the shares to respective company for demating.

4.SUN Pvt Ltd company wants to raise funds through deposits?

A. Can the company accept deposits from the public?

Ans: No, the company cannot accept deposits from the public.

B. Which document should the company issue invites deposits?

Ans: Only Circular to invite deposits from its members.

C. What is the maximum period for which they can accept deposits?

Ans: Maximum period is 36 months.