Ownership
Question : Case Study: XYZ Tech Solutions encourages its employees to take ownership of their work and propose innovative solutions. This reflects the application of which principle of management?
Option 1: Centralization
Option 2: Initiative
Option 3: Discipline
Option 4: Centralization
Correct Answer: Initiative
Solution : The correct answer is (b) Initiative.
Initiative is a management principle that encourages employees to actively seek opportunities for improvement, propose innovative ideas, and take ownership of their work. Organizations that value and foster initiative often see increased employee engagement, creativity, and a proactive approach
Question : Case Study: UVW Industries - Sustainable Financing for Green Initiatives
UVW Industries is a company committed to sustainable practices and is undertaking environmentally friendly initiatives. The company is exploring various sources of business finance to support its green projects.
Questions : Equity Shares and Preference Shares
What is the main advantage of equity shares for UVW Industries?
Option 1: Fixed dividend payments
Option 2: Ownership without dilution
Option 3: Higher interest payments
Option 4: No redemption option
Correct Answer: Ownership without dilution
Solution : The correct answer is (b) Ownership without dilution
Equity shares represent ownership in the company, allowing shareholders to have a stake in the business without the obligation of fixed dividend payments. By issuing equity shares, UVW Industries can raise capital and fund its
Question : The rise of OBCs in North Indian politics has been attributed to:
Option 1: Economic reforms
Option 2: Social movements
Option 3: Educational advancements
Option 4: Changes in land ownership patterns
Correct Answer: Social movements
Solution : The rise of OBCs in North Indian politics has been attributed to social movements that advocated for their rights and representation, leading to increased political mobilization.
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
Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
What is the main characteristic of equity shares?
Option 2: No voting rights
Option 3: Ownership in the company
Option 4: Guaranteed redemption
Correct Answer: Ownership in the company
Solution : The correct answer is (c) 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
Questions : Different Sources of Finance
What is the primary characteristic of equity shares?
Option 2: Ownership in the company
Option 3: Guaranteed redemption
Option 4: No voting rights
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
Question : It primarily refers to change in the ownership of land holdings.
Option 1: Land reforms
Option 2: Land ceilings
Option 3: Industrial policy
Option 4: Industrial licensing
Correct Answer: Land reforms
Solution : In post-independent India, equity in agriculture called for land reforms which primarily refer to change in the ownership of landholdings. Land reform refers to institutional measures directed towards altering the existing pattern of ownership, tenancy and management of land. Hence option A is correct.
What is the primary difference between debentures and equity shares?
Option 2: Equity shares pay fixed interest
Option 3: Debentures are issued to employees only
Option 4: Equity shares require repayment at maturit
Correct Answer: Debentures provide ownership rights
Solution : The correct answer is (a) Debentures provide ownership rights
Debentures represent a form of debt where the holders (debenture holders) are creditors to the company and do not possess ownership rights in the company. They are entitled to receive a fixed rate
Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Assertion: Equity shareholders have ownership rights but limited voting power.
Reason: Equity shareholders are entitled to receive fixed dividends every year.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Both assertion and reason are false.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Equity shareholders indeed have ownership rights in a company, which means they have a claim on the company's assets and earnings.
Question : Case Study 82
XYZ Enterprises is a startup that aims to trade its shares on a stock exchange. The company's management is reviewing the concept of executing an order.
Question :
What is the primary purpose of the settlement process in trading?
Option 1: Matching buy and sell orders
Option 2: Transferring ownership of shares
Option 3: Determining share prices
Option 4: Listing on stock exchange
Correct Answer: Transferring ownership of shares
Solution : The correct answer is (b) Transferring ownership of shares
The primary purpose of the settlement process in trading is to facilitate the transfer of ownership of shares from the seller to the buyer. Once a trade order is executed, the settlement process
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