In a fixed price issue, a company explores alternative allocation among various class of investors
as under. Find out which alternative is not permitted under the regulations
Select one:
a. Minimum 20% to QIB, and balance 70% to Retail and 10% to HNI
O b. Minimum 65% to retail, and balance 35% to HNI
O c. Minimum 40% to QIB, and balance 55% to retail and 5 % to HNI
O d. Minimum 50% to HNI, and balance 35% to retail and 15% to QIB
O e. -Minimum 60% to retail AND balance 30% to HNI, 10% to QIB
Answers
Explanation:
Select the Best Alternate and tally your answer with the Answers given at the end of the book :
(i) Meaning and Characteristics of a Company
1. A company has ……………
(A) Separate Legal Entity
(B) Perpetual Existence
(C) Limited Liability
(D) All of the Above
Answer
Answer: D
2. Shareholders are :
(A) Customers of the Company
(B) Owners of the Company
(C) Creditors of the Company
(D) None of these
Answer
Answer: B
3. Who are the real owners of a company?
(A) Government
(B) Board of Directors
(C) Equity shareholders
(D) Debentureholders
Answer
Answer: C
4. A Company is created by :
(A) Special act of the Parliament
(B) Companies Act
(C) Investors
(D) Members
Answer
Answer: B
5. An artificial person created by Law is called :
(A) Sole Tradership
(B) Partnership Firm
(C) Company
(D) All of the Above
Answer
Answer: C
6. The liability of members in a Company is :
(A) Limited
(B) Unlimited
(C) Stable
(D) Fluctuating
Answer
Answer: A
7. Liability of a shareholder is limited to ………………… of the shares allotted to him :
(A) Paid up Value
(B) Called up value
(C) Face value
(D) Reserve Price
Answer
Answer: C
8. Maximum number of members in a private company is :
(A) 7
(B) 200
(C) 20
(D) No Limit
Answer
Answer: B
(ii) Meaning, Nature and Types of Shares
9. Capital of a Company is divided in units which is called :
(A) Debenture
(B) Share
(C) Stock
(D) Bond