Secretarial Practice Question Bank (Marks 70)

Q,1 Select the correct answer from the options given below.

(1) Company has to pay _____ to government

(a) Taxes (b) dividend (c) interest

(2) ____ is related to money and money management

(a) production (b) marketing (c) Financing

(3) ____ is paid on borrowed capital

(a) Interest (b) discount (c) dividend

(4) Retained earning are _____ sources of financing

(a) Internal (b) external (c) additional

(5) ______ means shares are offered to the public

(a) Right issue (b) private placement (c) public issue

(6) ______ is a proof of title to shares

(a) Share certificate (b) register of member (c) letter of allotment

(7) ____ protect the interest of debenture holders

(a) Debenture trustees (b) debenture holders (c) redemption reserve.

(8) deposit is the type of ____

(a) Owned capital (b) short term loan (c) long term loan

(9) depository act was passed in _____

(a) 1919 (b) 1996 (c) 1999

(10) money market is a market for lending and borrowing of funds for ___ term .
(a) Short (b) medium (c) long

Q.2 Match The Pairs

1. fixed capital = Fixed Assets

2. bonus shares = Capitalisation of profit

3. Death of member = Transmission of Shares

4. change on asset = Secured debentures

5. Public Company =Minimum seven members

6.Tenure of deposits = Maximum 36 months

7. ECS = Electronic clearing Service

8. Convertible debentures = Evidence of Loan

9. Deposits Receipt = Evidence of Deposits

10.ISIN = A 12 digit number/code

Q. 3 Write a word or a phrase which can substitute each of the following statements,

1) The sum of current assets.

2) The internal sources of financing.

3) The real master of the company.

4) Part of issued capital subscribed by investors.

5) Appropriation of shares to an application .

6) Transfer of shares due to operation of law.

7) Authority which has power to issue debentures.

8) Agreement between company and Deposit Truste

9) Return on investment in debenture.

10) The meeting where the final dividend is declared.

Q.4 State whether the following statements are true or false.

1) Finance is related to money and money management.

2 ) Equity capital is known as venture capital.

3) The member transferring shares is called the transferor.

4) company cannot issue non convertible debentures.

5) Government company cannot make deposits from its members.

6) Debentureholders get regular dividends.

7) India has a multi depository system.

8) Dividend is declared by the Board of Directors.

9) Money market is the market for the long term funds,

10) Bombay Stock Exchange is the oldest stock exchange in India.

Q.5 Find the odd one.

1) Land and Building, Cash,Plant and Machinery,

2) Share Certificate, Debenture Certificate, American Depository receipt.

3) Bonus Shares, Rights Shares, ESOS.

4) Debenture holders, Dividend, Interest.

5) Dividend Warrant, Demat,Interest Warrant.

6) Trust Deed, Depository, Deposit receipt.

7) Depository Participant, Beneficial Owner, State Government..

8) Interest ,Final Dividend , Interim Dividend.

9) Equity Shares, Preference shares, Debentures.

10) DRF, RRF,PDF.

Q6 Correct the underline word.

1) Equity shares carry dividends at fixed rate.

2) Share is acknowledgement of loan raised by company.

3) Owned capital is temporary capital.

4) Only fully paid up shares can be forfeited.

5) Return on investment on debentures is dividend.

6) Dividend is recommended by Shareholders.

7) The person who purchases shares of the company is called Depositor.

8) Depositor is the owner of a company.

9) India has a single depository system.

10) Securities are fungible in physical mode.

Q.7 Complete the following sentences.

1) During recession period sales will-------------------.

2) The Bondholders are ------------------ of the company.

3) Bonus shares are issued as a gift to the-------------------

4) Reserve capital is part of-------------------

5) Letter sent applicants for informing them shares are allotted is called as------------------

6) Return on investment on debentures is called as------------------

7) Deposits is a type of-----------------

8) Dividend is recommended by-------------------------

9) Interest does not depend upon ---------------of the company.

10) Company can not issue debenture with -----------------rights.