Secretarial Practice Shaalaa.com Model Set 3 2020-2021 HSC Commerce (English Medium) 12th Standard Board Exam Question Paper Solution

Finance is the management of ______ affairs of the company.

monetary

marketing

production

Secured debentures must be redeemed within ______ from the date of their issue.

10 days

10 years

15 years

Under _________ method, issue price of shares is based on bidding.

Book Building

Fixed Price

Bonus Issue

The contract between company and Debenture trustees of companies is called as _____________.

Debenture trust deed

Letter of offer

Prospectus

Deposit can be accepted for a minimum of 6 months and maximum for ____________ months.

36

3

30

Answer in one sentence.

Define corporate finance.

Answer in one sentence.

What is the return on deposit?

Answer in one sentence.

What is the time limit to issue share certificate on allotment of shares?

Answer in one sentence:
Name the document which is an agreement between the debenture trustee and company?

Answer in one sentence.
Which companies can accept deposits from the public?

Correct the underlined word/s and rewrite the following sentence.
In Primary market, already existing securities are traded.

Correct the underlined word and rewrite the following sentence.

Duplicate share certificate must be issued within one month from date of application.

Correct the underlined word and rewrite the following sentence:
A company issuing irredeemable debentures must create a charge on the assets of the company.

Correct the underlined word and rewrite the following sentence.

Banking system leads to a scrip less capital market.

Correct the underlined word and rewrite the following sentence:

To rate its debentures a company appoints underwriters.

Arrange in proper order.
a. Obtain Credit Rating.
b. Entry in register of debenture
c. Receive application with money

Arrange in proper order.

1. Issue debenture certificate
2. Issue prospectus
3. Open bank Account

Arrange in proper order.
a. Hold Board Meeting for allotment
b. Issue debenture certificate
c. Receive application with money

Arrange in proper order:

(a) Allotment of shares

(b) Application of shares

(c) Share certificate

Arrange in proper order.

1. Interest warrant
2. Allotment of Debentures
3. Board meeting

Explain the following term/concept.
Capital market

Explain the following term/concept.
Eligible Public Company

Explain the following term/concept.
Secured Deposit

Explain the following term/concept.

Dividend

Explain the following term/concept.

Rematerialization

Explain the following term/concept.
Deposit Receipt

Study the following case/situation and express your opinion.

Mr. P has a recently got his B.Sc. degree. He has enrolled for a course in securities market. As a new student of this subject, he has few queries as follows :

1. Does a Company need to be listed on a stock exchange to sell its securities through the stock exchange.
2. What is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country?
3. What is the term which refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of security?

Study the following case/situation and express your opinion :

DIAMOND Co. Ltd. is considering to declare Interim Dividend.

1. In how many days of the declaration it should transfer the funds to Dividend Account?
2. In how many days it must pay it to shareholders?
3. In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?

Study the following case/situation and express your opinion.

A company is planning to enhance it's production capacity and is evaluating the possibility of purchasing new machinery whose cost is 2 crore or has alternative of machinery available on lease basis.

1. What type of asset is machinery?
2. Capital used for purchase of machinery is fixed capital or working capital?
3. Does the size of a business determine the fixed capital requirement?

Distinguish between the following.

Owned capital and borrowed capital.

Differentiate between the Money Market and Capital Market.

Distinguish between the following.

Jobber and Broker.

Distinguish between the following:

Dematerialization and Rematerializotion

State any four factors affecting fixed capital requirement.

Answer in brief.

Discuss the rules governing unpaid and unclaimed dividend.

Answer in brief.
State the contents of circular or Advertisement for Deposit

Justify the following statement.

Fixed capital stays in the business almost permanently.

Justify the following statement.

Interim dividend cannot be paid out of free reserves.

Justify the following statement.

The electronic holding of securities is safer than physical holding.

Justify the following statement:

Debenture trustees is appointed by a company issuing debentures.

Draft a letter of debenture holder informing him about redemption of debentures.

Attempt the following.

Draft a reply letter resolving the query of the member on low rate of dividend.

Draft a letter to a depositor regarding repayment of his deposit. 

Answer the following question.

Define preference shares. What are the different types of preference shares?

Answer the following question.

Explain briefly the different types of shares offered by a company to its existing equity shareholders.