Directions : Choose the most appropriate assumption.
Statement: To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions-Opinion of a consultant.
Assumptions:
I. The financial institutions lend money for such proposals.
II. The product of the company has a potential market.
III. The employees of the company are inefficient.

Only II and III are implicit

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All are implicit

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None is implicit

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Only I and II are implicit

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Only I and III are implicit

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Solution

The correct option is D Only I and II are implicit
To make the company commercially viable there is an urgent need to prune the staff strength and borrow money strength and borrow money from the financial institutions-Opinion of a consultant. Which means we are assuming that financial institutions lend money for such proposals and as we want some money we are also assuming that we have a potential market so that we can repay them from the profit.

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Similar questions

Q. Statement: "To make the company commercially viable, there is an urgent need to prune the staff strength and borrow money from the financial institutions." - Opinion of a consultant.
Assumptions:
I. The financial institutions lend money for such proposals.
II. The product of the company has a potential market.
III. The employees of the company are inefficient.

Statement: The company has decided to increase the price of all its products to tackle the precarious financial position.

Assumptions:

I. The company may be able to wipe out the entire losses incurred earlier by this decision.

II. The buyers may continue to buy its products even after the increase.

III. The company has adequate resources to continue production for few more months.

___ is/are issued by commercial banks or developmental financial institutions to individuals, institutions, cooperations, and companies.

Under which major head and sub-heads does the following items be placed in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013.

(i) Cash credit.

(ii) 10 years loan obtained from Financial Institutions.

(iii) Debenture Sinking Fund.

(iv) Matured Debentures.

A share broker keeps complete knowledge about share market conditions. The directors of a company take his help to make a fresh issue of the proposed company. Later on, it was found that the share broker himself has brought a maximum number of shares of the company through unfair means with an objective of doing price rigging.

(i) Which market did the share broker work in and represented what possible institutions to make fresh issues for the company?

(ii) What are the unfair means undertaken by the share broker called? What does it mean?

(iii) Which regulatory body can protect investors and punish the share broker from this unfair means?

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