Question

MCQ:
1.Redeemable preference shares can be redeemed:
(A) Only if they are fully paid (B) Even if they are partly paid (C) If they are paid not less than 50% of
the nominal value of shares (D) Only if they are issued at a premium
2.Bonus shares are issued by the companies because : (A) Surplus cash is available (B) There is
heavy competition from similar companies (C) There is heavy accumulated general reserve (D)
They have high gross profit ratio.
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Answer 1

Answer:

The redeemable preference shares must be fully paid-up. 

 The redeemable preference shares can be redeemed only if the terms laid down at the time of issuing are met. However, on approval of shareholders and under the conditions laid down in Section 48 of the Act, certain provisions can be altered/modified.

Answer 2

preference shares can bebredmeemable