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GNYANODAYA JUNIOR COLLEGE OF ARTS, SCIENCE & COMMERCE

Date: SYJC PRELIMINARY EXAMINATION 2024 - 2025


TIME : SUB: SP
MARKS : 80
3 HR
Note: 1) All questions are compulsory.

2) Draw neat tables/Diagrams wherever necessary.

3) Figures to the right indicate full marks.

4) write answers to all main questions on new pages.

Q1.Select the correct answer from the options and rewrite the sentence 5m

1. _______ is related to money and money management.(Production/Marketing/Finance)


2. In _______ shares of a company are not offered for the public for the first time. (FPO/IPO/Public offer)
3. Deposit is a type of _______ ( Owned capital/Short term loan/long term loan)
4. A company cannot accept deposit for more than ________ months.(24/36/45)
5. Financial Market is market in which people trade _______ and derivative of low transaction
cost.(Gold/Financial/Commodities)

Q1.B. Match the pair 5m


Group A GROUP B
a)Preference Share Connect Government and bank
b)Debenture holder Company not allowed to pay
c)Depository Bold Investors
d)Interest No voting right
e)Primary Market Obligatory to pay
New Issue market

Cautious Investor

Short term fund

Custodian of securities in electronic form

Voting Rights

Q1.C.Complete the sentence 5m

1. Initial Planning of capital requirement is made by _________


2. Return on investment on debenture is called _________
3. Debenture holder is a ______ of the company
4. The meeting in which final dividend is approved is called as ___________
5. Funds borrowed and lent in money market are for _____ term.

Q1.D.Select the correct option from bracket 5m


GROUP A GROUP B
a)Equity Shares 1)____________
b)Right Issues 2)_____________
c)_____________ 3)Change on fungible assets
d)___________ 4)Interim Dividend
e)Regulator of capital market 5)___________
(Share offer to existing equity shareholder, At board meeting ,fluctuating rate of dividend, SEBI, Secured deposit)

Q2. Explain the following term /Concepts (Any Four) 8m

1. Owned Capital
2. Debenture Certificate
3. Conversion of debenture
4. Dematerialization
5. Interim dividend
6. Financial Dividend

Q3. Study the following

(1) Mr Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and
does not want to take any risk. He is interested in definite rate of income and safety of principal.

a) Name the type of security that Mr. Rohit will opt for.
b) What does he receive as return on his investment?
c) The return on his investment which he receives is fixed or fluctuating.

2) TRI Ltd. Company has recently incorporated as public company and want to raise capital by selling equity shares
to of Directors are public. The Board of considering various options for this . Advise the board on following matter

a) What should the company offer IPO or FPO?


b) Can the company offer bonus shares to raise its capital?
c) Can the company enter into underwriting agreement?

(3) The Board of Directors of STAR Company Ltd. which is a listed company Note: (1) All question recommends a
dividend of 15/- per share to be paid in cash.

a) Is it justified to pay the dividend firstly to its preference shareholder and then after to equity shareholder?
b) Is the AGM required to approve the same?
c) Can company pay dividend in cash

Distinguish between the following : Any THREE)

1. Shares and Debenture


2. Dividend and Interest
3. Money Market and Capital Market
4. Initial public Offer and Further Public Offer

Q5.Answer the following: Any two)


1. What is Global Depository Receipt?
2. What is Book Building Method?
3. Explain Depository as constituent of depository system.

Q6. Justify the following statements: (Any TWO)

1. There are various factors affecting the requirement of fixed capital


2. A company has to create charge on its assets for issuing secured debentures. 3. A company
issuing deposit must open Deposit Repayment Reserve Account
4. SEBI is the regulator for the securities market in India.

Q7. 7. Attempt the following: (Any TWO)

1. Write a letter to the member for the issue of share certificate.


2. Draft a letter to debenture holder informing him about redemption of debentures
3. Draft a letter of thanks to the depositor of a company.

Q. 8. Answer the following questions: (Any ONE)

1. Define Preference Shares. What are different types of preference shares?


2. Briefly explain the provision of Companies Act, 2013 for issue of debentures

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