Correct Answer:

Reserve Bank of India

Solution : The correct option is Reserve Bank of India.

The Reserve Bank of India (RBI) announces the Monetary and Credit Policy. The RBI uses it as a key policy instrument to control the money supply and credit availability in the economy. Inflation control, fostering economic growth, and preserving financial system stability are the major goals of monetary and credit policy.  It describes numerous tools used to affect the money supply and credit conditions in the economy, such as the repo rate, reverse repo rate, cash reserve ratio (CRR), statutory liquidity ratio (SLR), and other policy instruments.

Correct Answer: Dividends on these shares must be paid before any arrears
  

Solution : The correct answer is (b) Dividends on these shares must be paid before any arrears

Cumulative preference shares entitle the shareholders to receive their fixed dividends before any dividends are paid to equity shareholders. If the company is unable to pay dividends in a particular year, the unpaid dividends accumulate and must be paid in future years before any dividends are distributed to equity shareholders. This ensures that the preference shareholders receive their dividends, including any unpaid amounts from previous years, before equity shareholders receive any dividends.

Correct Answer: International Depository Receipt
 

Solution : The correct answer is (b) International Depository Receipt

An International Depository Receipt (IDR) is a financial instrument denominated in a foreign currency and is offered by a non-resident company outside the country where it is listed. IDRs represent shares of the foreign company and can be traded on international stock exchanges, allowing companies to raise capital from investors in foreign markets.

Correct Answer: To support costly innovation projects

Solution : The correct answer is (d) To support costly innovation projects

LMN Ventures might need external financing for its research and development (R&D) initiatives primarily to support costly innovation projects. Research and development involve significant investments in terms of resources, technology, talent, and time. Innovative projects can be expensive, especially those involving cutting-edge technologies, advanced research, or development of new products.

To support costly innovation projects is the most relevant and common reason for seeking external financing for R&D initiatives, especially when the projects require substantial financial resources to drive innovation and maintain competitiveness in the market.

Correct Answer: Housing Development Finance Corporation (HDFC)

Solution : The correct answer is (a) Housing Development Finance Corporation (HDFC)

Housing Development Finance Corporation (HDFC) is a financial institution that specializes in providing loans for purchasing homes in India. It is one of the largest housing finance companies in India and offers a range of home loan products to individuals and families.

HDFC provides home loans for various purposes, including buying a new home, constructing a house, purchasing land for construction, renovating or improving an existing home, and refinancing existing home loans. They offer competitive interest rates, flexible repayment terms, and personalized customer service to cater to the diverse needs of homebuyers.

Correct Answer: Expanding into new business areas

Solution : The correct answer is (d) Expanding into new business areas

Diversification involves entering into new markets, launching new products or services, or expanding business operations into different areas or industries. The objective is to spread business risk by participating in various activities that may have different market dynamics, revenue streams, and growth potentials. This strategy helps the company balance its portfolio and reduce dependence on a single business line, potentially enhancing overall business sustainability and profitability.

Correct Answer: A fixed dividend before equity shareholders

Solution : The correct answer is (c) A fixed dividend before equity shareholders

Preference shareholders are entitled to receive a fixed dividend at a predetermined rate before any dividend is paid to equity shareholders. This characteristic distinguishes them from equity shareholders, who may receive variable dividends based on the company's profitability and decisions made by the board of directors. However, preference shareholders typically do not have voting rights in the company's decisions, and their shares usually cannot be converted into debentures.

Correct Answer: Departmentalisation

Solution : Grouping similar and related jobs into larger units called departments, divisions or sections and placing them under a department head. It facilitates specialization. – The departments are linked together and are interdependent. Hence, the correct option is 2.

Correct Answer: Finance Commission

Solution : The correct answer is the Finance Commission.

The President constitutes the Finance Commission, a body established by the Constitution. It establishes guidelines for how the Centre should allocate funds from the India Consolidated Fund to the states as aid and makes recommendations for ways to boost state resources.