hitechpathshala

Q. 1

When a company purchases its own shares out of free reserves; a sum equal to nominal value of shares so purchased shall be transferred to

Revenue redemption reserve.

Capital redemption reserve.

Buyback reserve

General reserve.

Q. 2

When a company purchases its own shares out of free reserves; a sum equal to nominal value of shares so purchased shall be transferred to

Revenue redemption reserve.

Capital redemption reserve.

Buy-back reserve

Special reserve

Q. 3

State which of the following statements is true?

Buy-back is for more than twenty-five per cent of the total paid-up capital and free reserves of the company.

Partly paid shares cannot be bought back by a company.

Buy-back of equity shares in any financial year shall exceed twenty-five per cent of its total paid-up equity capital in that financial year.

Partly paid shares can be bought back by a company

Q. 4

Premium (excess of buy-back price over the par value) paid on buy-back should be adjusted against

(a) Free reserves.

(b) Securities premium.

(c) Both (a) and (b).

(d) Neither (a) nor (b).

Q. 5

Advantages of Buy-back of shares include to

Encourage others to make hostile bid to take over the company.

Decrease promoters holding as the shares which are bought back are cancelled.

Discourage others to make hostile bid to take over the company as the buy-back will increase the promoters holding.

All of the above.

Q. 6

The companies are permitted to buy-back their own shares out of

(a) Free reserves and Securities premium

(b) Proceeds of the issue of any shares.

(c) Both (a) and (b)

(d) Neither (a) nor (b).

Q. 7

As per section 68(1) of the Companies Act, buy-back of own shares by the company, shall not exceed

25% of the total paid-up capital and free reserves of the company.

20% of the total paid-up capital and free reserves of the company.

15% of the total paid-up capital and free reserves of the company.

10% of the total paid-up capital and free reserves of the company.

Q. 8

As per section 68(1) of the Companies Act, buy-back of own shares by the company, shall not exceed

25% of the total paid-up capital and free reserves of the company.

20% of the total paid-up capital and free reserves of the company.

15% of the total paid-up capital and free reserves of the company.

10% of the total paid-up capital and free reserves of the company.

Q. 9

The companies are permitted to buy-back their own shares out of

Free reserves and Securities premium

Proceeds of the issue of any shares.

Both (a) and (b)

Neither (a) nor (b).

Q. 10

When a company purchases its own shares out of free reserves; a sum equal to nominal value of shares so purchased shall be transferred to

Revenue redemption reserve.

Capital redemption reserve.

Buy-back reserve

Special reserve

Q. 11

State which of the following statements is true?

Buy-back is for more than twenty-five per cent of the total paid-up capital and free reserves of the company.

Partly paid shares cannot be bought back by a company.

Buy-back of equity shares in any financial year shall exceed twenty-five per cent of its total paid-up equity capital in that financial year.

Partly paid shares can be bought back by a company.

Q. 12

Premium (excess of buy-back price over the par value) paid on buy-back should be adjusted against

Free reserves.

Securities premium.

Both (a) and (b).

Neither (a) nor (b).

Q. 13

Advantages of Buy-back of shares include to

Encourage others to make hostile bid to take over the company.

Decrease promoters holding as the shares which are bought back are cancelled.

Discourage others to make hostile bid to take over the company as the buy-back will increase the promoters holding.

All of the above.

Buy Back of Securities....

Marks: 15

Advantages of Buy-back of shares include to

The companies are permitted to buy-back their own shares out of

As per section 68(1) of the Companies Act, buy-back of own shares by the company, shall not exceed

The companies are permitted to buy-back their own shares out of

When a company purchases its own shares out of free reserves; a sum equal to nominal value of shares so purchased shall be transferred to