Capital Subscription

Q.

What is a prospectus ? Is it necessary for every company to file a prospectus ?

Q.

Explain the term, 'Minimum Subscription'.

Q.

What is marked application?

Q.

Is it necessary for a public company to get its share listed on a stock exchange? What happens if a public company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to get such permission ?

Q.

What is the role of underwriters in the capital subscription stage of public limited company?

Q.

State and explain briefly the steps required to raise funds from the public.

Q. To receive and deposit the application money bankers are appointed whereas to sell the shares are appointed.

1. promoters
2. brokers
3. directors
4. underwriters

Q. What do you mean by minimum subscription?

Q.

State and explain the six steps required to raise funds from the public i.e., capital subscription by the company.

Q.

Why are brokers appointed at the capital subscription stage ?

Q.

Which represents the right order for the formation of a public company?

1. Capital Subscription 2. Promotion 3. Incorporation

1. 1-2-3

2. 3-2-1

3. 2-1-3

4. 2-3-1

Q.

To whom is the application for approval of name of a company made?

Q. It is compulsory that the company must receive applications for some minimum number of shares. This is known as a .

1. minimum subscription
2. maximum subscription
3. over subscription
4. under subscription

Q.

A private company mentions Pvt. Ltd after its name, what does a public company mention?

1. So and So Company Ltd.

2. None of the above

3. So and So Company Pub. Ltd.

4. So and So Company

Q. The minimum subscription as prescribed by SEBI against the entire issue is?

1. $95\%$
2. $90\%$
3. $5\%$
4. None

Q.

When does a company interact with SEBI?

1. None of the above

2. Capital Subscription

3. Incorporation

4. Promotion

Q.

State and explain the six steps required to raise funds from the public i.e., capital subscription by the company.

Q. Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form a company to better manage the business. She also has plans to open branches countrywide.

(a) Explain two benefits of remaining a sole proprietor
(b) Explain two benefits of converting to a joint stock company
(c) What role will her decision to go nationwide play in her choice of form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?

Q. If the company is not sure of selling the whole lot of shares it may appoint .

1. promoters
2. directors
3. brokers
4. underwriters

Q.

1. 10
2. 20
3. 30
4. 60

Q. State the following Statement are True or False:

1. True
2. False

Q. Choose the best answer from (A), (B), (C) or (D), to complete sentence.

1. When you buy two shirts, we charge you for only one of them.
2. We give you a free shirt with every shirt you buy
3. For every shirt you buy we give you a rebate on the second shirt
4. If you buy two shirts, we give you a shirt free.

Q. The minimum amount of capital which must be subscribed by the public before allotment is called ___________.

1. Allotment money
2. Minimum subscription
3. Subscribed capital
4. None of the above

Q. State the following statements is True or False.

1. True
2. False

Q. A Public company whose shares are not on the official list of shares traded on a particular stock market is called _________.

1. Listed company
2. Unlisted company
3. Private company
4. Public company

Q. A co. was incorporated outside India before April 1, 1956 and is still having its business in India. It is a ______________________.

1. government Co
2. none of the above
3. foreign company
4. indian company

Q. Private limited company may appoint ________ number of directors.

1. 3
2. 12
3. 18
4. 15

Q. A person who gives guarantee of raising minimum subscription is an underwriter.

1. true
2. false

Q.

1. 1500
2. 2000
3. 5000
4. 1000

Q.

1. 4
2. 2
3. 8
4. 6