Finance Quiz

1. Who are the real owners of a company?
Equity shareholders
Board of Directors
Government
2. A Company is created by ________
Companies Act
Investors
Special act of the Parliament
3. The difference between bid (buying) rates and ask (selling) rates is called the _________?
Spread
Arbitrage
Profit
4. Which of the following contracts involves future exchange of assets at a specified price?
Forward Contract
Future Contract
Present Contract
5. An example of a derivative security is ______
Both
a call option on Mobil stock.
a commodity futures contract
6. Preference shareholders have
Preferential right as to dividend and repayment of capital at the time of liquidation of the Company
Preferential right in the management
Preferential right as to repayment of capital at the time of liquidation of the company
7. The portion of the capital which can be called-up only on the winding up of the Company is called ________
Reserve Capital
Uncalled Capital
Authorised Capital
8. Capital included in the Total of Balance Sheet of a Company is called ________
Subscribed Capital
Issued Capital
Called up Capital
9. ________ is transferred to Capital Reserve.
Both
Profit on forfeiture of shares
Premium on issue of shares
10. Reserve Capital is also known by ________
None
Called up Capital
Subscribed Capital
11. Voluntary return of shares for concellation by the shareholders is called ________
Surrender of shares
Forfeiture
Cancellation of shares
12. At the time of forfeiture of shares the share capital account is debited with (CPT, June 2011)
Called up value
Face value
Paid up value
13. Which one of the following items is not a part of subscribed capital?
Forfeited Shares
Preference Shares
Equity Shares
14. Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called :
Convertible Preference Share
Non-cumulative Preference Share
Cumulative Preference Share
15. Forfeiture of shares results in the reduction of:
Subscribed Capital
Authorised Capital
Reserve Capital