Question : Fill in the blanks-
_________ means the transfer of ownership, management, and control of public sector enterprises to private enterprises.
Option 1: Liberalisation
Option 2: Privatisation
Option 3: Globalisation
Option 4: None of the above.
Correct Answer: Privatisation
Solution : Privatization can suggest several things including the migration of something from the public sector to the private sector.
Privatization means the transfer of ownership, management, and control of public sector enterprises to private enterprises. Privatization can suggest several things including the migration of something from the public sector to the private sector.
Hence Option B is correct.
Question : What was the significance of surveys conducted by the East India Company in rural areas?
Option 1: Mapping trade routes
Option 2: Assessing land fertility
Option 3: Estimating population density
Option 4: Recording land ownership and usage
Correct Answer: Recording land ownership and usage
Solution : Surveys conducted by the East India Company in rural areas were significant for recording land ownership and usage, which helped in implementing revenue settlements and understanding the agrarian landscape.
Question : Case Study: ABC Corporation - Financing Growth Strategies
ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.
Questions : Different Sources of Finance
What is the primary characteristic of equity shares?
Option 1: Fixed dividend payments
Option 2: Ownership in the company
Option 3: Guaranteed redemption
Option 4: No voting rights
Correct Answer: Ownership in the company
Solution : The correct answer is (b) Ownership in the company
Equity shares represent ownership in a company, conferring the shareholder with ownership rights and an ownership stake in the company. Equity shareholders have a claim on the company's assets and earnings and typically have voting rights, allowing them to participate in key decisions and the governance of the company. Unlike debt instruments such as debentures, equity shares do not entail fixed dividend payments or guaranteed redemption. Instead, dividends to equity shareholders are subject to profitability and the decisions of the company's board of directors.
Question : Questions : Equity Shares and Preference Shares
Statement 1: Equity shareholders have ownership rights and voting power in company decisions.
Statement 2: Equity shareholders do not receive any dividends.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : The correct answer is (c) Both statements 1 and 2 are true.
Statement 1 is true. Equity shareholders have ownership rights in the company. They hold shares that represent ownership stakes in the company and have voting power, allowing them to participate in company decisions and influence important matters through voting on various issues.
Statement 2 is true. Equity shareholders may or may not receive dividends, depending on the company's dividend policy and financial performance. Dividends are a distribution of a portion of a company's earnings to its shareholders, but they are not guaranteed and are subject to the company's profitability, cash flow, and decisions of the board of directors.
Question : Case Study: ABC Corporation - Financing Growth Strategies
ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.
Questions : Different Sources of Finance
What is the primary characteristic of equity shares?
Option 1: Fixed dividend payments
Option 2: Ownership in the company
Option 3: Guaranteed redemption
Option 4: No voting rights
Correct Answer: Ownership in the company
Solution : The correct answer is (b) Ownership in the company
Equity shares represent ownership in a company, conferring the shareholder with ownership rights and an ownership stake in the company. Equity shareholders have a claim on the company's assets and earnings and typically have voting rights, allowing them to participate in key decisions and the governance of the company. Unlike debt instruments such as debentures, equity shares do not entail fixed dividend payments or guaranteed redemption. Instead, dividends to equity shareholders are subject to profitability and the decisions of the company's board of directors.
Question : Case Study 30
LMN Corporation is a conglomerate that has executed trades on a stock exchange. The company's management is preparing for the settlement process.
Question :
During the settlement process, what is transferred from the seller to the buyer?
Option 1: Ownership of shares
Option 2: Brokerage fees
Option 3: Dividends
Option 4: Trading orders
Correct Answer: Ownership of shares
Solution : The correct answer is (a) Ownership of shares
During the settlement process, what is transferred from the seller to the buyer is ownership of shares. The seller transfers ownership of the shares to the buyer, and these shares are moved from the seller's demat account to the buyer's demat account, completing the transaction. Brokerage fees , dividends , and trading orders are not transferred from the seller to the buyer during the settlement process. Brokerage fees are fees paid to the broker, dividends are paid by the company to shareholders, and trading orders are instructions for buying or selling securities.
Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Different Sources of Finance
What is the primary characteristic of equity shares?
Option 1: Fixed interest payments
Option 2: Ownership in the company
Option 3: Guaranteed redemption
Option 4: No voting rights
Correct Answer: Ownership in the company
Solution : The correct answer is (b) Ownership in the company
Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed interest payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the company's board of directors.
Question : Case Study: ABC Corporation - Financing Growth Strategies
ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.
Questions : Debentures and Financial Instruments
What distinguishes debentures from equity shares in terms of ownership and returns?
Option 1: Debentures provide ownership rights
Option 2: Debentures pay fixed dividends
Option 3: Equity shares have fixed interest rates
Option 4: Equity shares are a form of long-term borrowing
Correct Answer: Debentures pay fixed dividends
Solution : The correct answer is (b) Debentures pay fixed interest
Debentures pay fixed interest to the debenture holders, as they are a form of debt and represent a loan from the debenture holder to the issuing company. In contrast, equity shares represent ownership in the company and do not guarantee fixed dividend payments; the dividends paid to equity shareholders are typically based on the company's profitability and decisions made by the board of directors.
Question : Common property resources are characterized by:
Option 1: Private ownership and individual management
Option 2: Open access with no rules or regulations
Option 3: Collective management by a community or group
Option 4: Government control and centralization
Correct Answer: Collective management by a community or group
Solution : Common property resources are characterized by collective management by a community or group, with rules and norms established to ensure sustainable use and equitable access.
Question : Case Study: LMN Ventures - Financing Innovation and Research
LMN Ventures is a research-driven technology company aiming to innovate and develop cutting-edge products. The company is exploring various sources of business finance to support its research and development endeavors.
Question:Different Sources of Finance
What distinguishes debentures from equity shares in terms of ownership and returns?
Option 1: Debentures provide ownership rights
Option 2: Debentures pay fixed dividends
Option 3: Equity shares have fixed interest rates
Option 4: Equity shares represent short-term borrowing
Correct Answer: Debentures pay fixed dividends
Solution : The correct answer is (b) Debentures pay fixed interest
This statement is correct. Debentures pay fixed interest to debenture holders, not dividends. The interest rate is predetermined and agreed upon at the time of issuing the debentures.