<<12345678910111213141516171819202122232425262728293031323334353637383940>> 1. What does equity share capital represent in a company?Maximum authorized capitalPortion of capital raised by issuing sharesRetained earningsDebt capitalQuestion 1 of 40 2. Which part of the authorized capital is issued to the public for subscription?Authorized Share CapitalSubscribed Share CapitalIssued Share CapitalPaid-up Share CapitalQuestion 2 of 40 3. Subscribed Share Capital refers to:The capital approved by the boardThe portion of issued capital subscribed by the publicThe total authorized capital of the companyThe capital paid by shareholdersQuestion 3 of 40 4. What is Called-up Share Capital?Portion of authorized capitalPortion of issued capital called by the companyDividends paid to shareholdersProfits retained by the companyQuestion 4 of 40 5. Paid-up Share Capital represents:The amount of capital authorized by the companyThe amount of capital shareholders have paid for their sharesThe dividends paid to shareholdersThe net worth of the companyQuestion 5 of 40 6. Term loans are usually taken for which of the following purposes?Short-term financing needsFunding business expansionDaily operational expensesInvesting in stocksQuestion 6 of 40 7. What does the repayment schedule for a term loan consist of?Principal onlyInterest onlyBoth principal and interestFees and chargesQuestion 7 of 40 8. Which factor determines the interest rates on term loans?Credit rating of the borrowerLoan term durationBorrower's industry sectorExchange ratesQuestion 8 of 40 9. In secured term loans, what is used as collateral?Company sharesBusiness contractsSpecific assets like property or inventoryPersonal assets of the ownerQuestion 9 of 40 10. What does "amortization" in term loans refer to?Paying off the interestPaying off the principalGradual repayment of both principal and interestPaying off the loan in one lump sumQuestion 10 of 40 11. How are debentures structured?As equity investmentsAs loansAs bondsAs cash reservesQuestion 11 of 40 12. Debenture holders receive periodic interest payments:WeeklyMonthlySemi-annually or annuallyQuarterlyQuestion 12 of 40 13. What distinguishes secured debentures from unsecured debentures?Interest ratesMaturity dateCollateral backingIssuing entity's credit ratingQuestion 13 of 40 14. How are debenture holders ranked in case of bankruptcy?They have the highest priority over all other creditors.They have the lowest priority.They are equivalent to shareholders.Their ranking depends on the issuing entity.Question 14 of 40 15. What defines whether a debenture is secured or unsecured?The issuing company's sizeThe issuing country's regulationsThe presence or absence of collateralThe interest rate offeredQuestion 15 of 40 16. According to Lerner, what are the broad categories of private equity activities?Venture capital and loansLeveraged buyouts and bridge financingMergers and acquisitionsDistressed debt and equity sharesQuestion 16 of 40 17. In a Management Buyout (MBO), who plays a significant role in the transaction?Existing management of the companyExternal investorsGovernment authoritiesCompeting companiesQuestion 17 of 40 18. Which stage of corporate development involves providing capital for product development and initial marketing activities?Seed financingStart-up financingBridge financingPIPE dealsQuestion 18 of 40 19. In a Leveraged Buyout (LBO), what is the primary source of financing?Equity from existing shareholdersDebtVenture capitalGovernment grantsQuestion 19 of 40 20. What characterizes the private equity investment known as a "PIPE deal"?Investing in start-upsInvesting in public equityInvesting in distressed companiesInvesting in international marketsQuestion 20 of 40 21. What does FDI stand for?Foreign Development InvestmentForeign Direct InvestmentForeign Domestic InvestmentForeign Debt InvestmentQuestion 21 of 40 22. How does FDI contribute to economic growth?By reducing inflation ratesBy increasing foreign debtBy creating jobs and fostering technological advancementsBy promoting government controlQuestion 22 of 40 23. What is a common form of FDI?Acquisition of foreign assetsJoint ventures with local companiesGovernment grants to foreign companiesEquity investment in domestic firmsQuestion 23 of 40 24. How do governments often incentivize FDI?By imposing high taxes on foreign investorsBy limiting foreign investment in key industriesBy facilitating business operations and creating a favorable investment climateBy providing free grants to foreign investorsQuestion 24 of 40 25. In FDI, what is the term for reinvesting profits back into existing operations?Profitable reinvestmentProfit sharingProfit recyclingProfit reintegrationQuestion 25 of 40 26. What is the maximum amount of capital a company is authorized to issue, as per the Memorandum and Articles of Association?Subscribed Share CapitalIssued Share CapitalAuthorised CapitalCalled-up Share CapitalQuestion 26 of 40 27. In the context of equity share capital, what is the significance of "Called-up" capital?Portion of authorized capital called by the companyPortion of issued capital subscribed by the publicThe total capital invested by shareholdersPortion of paid-up capitalQuestion 27 of 40 28. What does "Reserve Capital" refer to in the context of equity shares?Portion of profits reserved by the companyPortion of authorized capital not yet issuedPortion of issued capital not subscribed by the publicPortion of called-up capital yet to be paid by shareholdersQuestion 28 of 40 29. Which type of share capital is the result of the shareholders' actual payment for their shares?Authorised Share CapitalIssued Share CapitalCalled-up Share CapitalPaid-up Share CapitalQuestion 29 of 40 30. If a company decides to increase its equity share capital, what process does it typically follow?Stock dilutionRights issueTreasury stock purchasePreferred stock conversionQuestion 30 of 40 31. Which aspect of a term loan determines the periodic payment amount?Loan termInterest rateLoan amountCollateral valueQuestion 31 of 40 32. In the context of term loans, what does "Amortization" refer to?Gradual repayment of principalEarly repayment penaltiesChanging interest ratesMonthly installmentsQuestion 32 of 40 33. What is one of the key differences between a term loan and a revolving credit line?Term loans have a fixed term, while revolving credit lines do not.Revolving credit lines require collateral, while term loans do not.Term loans have variable interest rates, while revolving credit lines have fixed rates.Revolving credit lines have a fixed repayment schedule, while term loans have a flexible one.Question 33 of 40 34. In the context of term loans, what is "Prepayment"?Making an extra payment to reduce the principalPaying interest in advanceDefaulting on a paymentExtending the loan termQuestion 34 of 40 35. What type of interest rate remains constant throughout the term of a term loan?Variable interest rateFixed interest ratePrime interest rateDiscounted interest rateQuestion 35 of 40 36. What is the primary reason for a company to issue debentures?To raise equity capitalTo fund a specific projectTo issue dividends to shareholdersTo pay off existing debtsQuestion 36 of 40 37. In the context of debentures, what does "Redemption" refer to?Selling debentures on the stock marketRepurchasing debentures before maturityPaying periodic interest to debenture holdersIssuing new debentures to the publicQuestion 37 of 40 38. What happens to the price of debentures when interest rates in the market rise?Price increasesPrice decreasesPrice remains the samePrice fluctuates randomlyQuestion 38 of 40 39. Which party bears the risk in a debenture investment if the issuing company faces financial difficulties?Debenture holdersIssuing companyGovernmentStockholdersQuestion 39 of 40 40. What distinguishes convertible debentures from traditional debentures?Convertible debentures can be exchanged for equity sharesConvertible debentures have higher interest ratesConvertible debentures have a shorter maturity periodConvertible debentures are always securedQuestion 40 of 40 Loading...
