Correct Answer: Dividends on these shares can be postponed

Solution : The correct answer is (c) Dividends on these shares can be postponed

Non-cumulative preference shares do not carry the right to accumulate unpaid dividends. If the company is unable to pay dividends in a particular period, the shareholders of non-cumulative preference shares do not have the right to claim those unpaid dividends in the future. This is in contrast to cumulative preference shares, where any unpaid dividends accumulate and must be paid in future periods before any dividends are distributed to equity shareholders.

Correct Answer: Attorney General of India

Solution : The correct answer is Attorney General of India.

Article 76 of the Indian Constitution designates the Attorney General of India as the highest law officer. Serving as the chief legal advisor to the government, the Attorney General provides legal counsel on various matters. This constitutional provision underscores the importance of legal expertise in advising the Union government.

Correct Answer: The company has the option to buy back the debentures
    

Solution : The correct answer is (b) The company has the option to buy back the debentures

When debentures are labeled as "callable," it means that the issuing company has the right, but not the obligation, to buy back or redeem the debentures before their maturity date. Typically, there are specific terms and conditions outlined in the debenture agreement regarding when and how the company can exercise this option to call or buy back the debentures. This provides flexibility to the company to manage its debt and capital structure.

Correct Answer: Primary market
 

Solution : The correct answer is (a) Primary market

If MNO Inc. is considering issuing bonds to finance its acquisition plans, it represents a primary market activity. The primary market is where new securities, such as bonds and stocks, are issued for the first time and sold directly by the issuing company to investors. In this case, MNO Inc. would issue bonds to raise funds for its acquisition plans. Investors would purchase these newly issued bonds directly from MNO Inc., and the company would receive the proceeds from the sale of these bonds. This infusion of capital from the sale of bonds would then be used to finance the acquisition of other companies, helping MNO Inc. diversify its business operations.

The secondary market, on the other hand, is where existing securities are bought and sold among investors, and the issuing company does not directly receive proceeds from these transactions. The money market primarily deals with short-term debt securities, and the capital market encompasses both the primary and secondary markets for long-term securities.

Correct Answer: Preference shares pay higher dividends
 

Solution : The correct answer is (a) Preference shares pay higher dividends

Preference shares typically have fixed dividend rates, and shareholders holding preference shares are entitled to receive these fixed dividends before any dividends are distributed to equity shareholders. This characteristic often makes preference share dividends appear higher or more stable compared to the variable dividends associated with equity shares.

Correct Answer: Long term financing requirement

Solution : Capital market refers to that market with transaction in long term securities are made. It is the nature the capital market to satisfy the long term financial needs of the government industrial sector.

Hence, option B is correct.

Correct Answer: Both enable companies to raise capital in international markets

Solution : The correct answer is (d) Both enable companies to raise capital in international markets

GDRs and ADRs allow companies to access international capital markets by issuing their shares in the form of depository receipts. GDRs are traded outside the United States, and ADRs are traded in the United States. Both serve as instruments to raise capital by attracting investment from international investors and expanding the company's investor base beyond its home country.

Correct Answer: Achieving long-term financial goals and stability

Solution : The correct answer is (c) Achieving long-term financial goals and stability

Financial planning in a business involves creating a comprehensive strategy to manage financial resources efficiently, allocate funds effectively, and achieve both short-term and long-term financial objectives. It's about ensuring the company's stability and growth over time, managing risks, optimizing resource utilization, and making informed decisions to achieve sustainable success in the long run. The goal is to achieve financial stability and meet the company's long-term goals and objectives, rather than focusing solely on short-term operational needs or maximizing profits at any cost.

Correct Answer: K. C. Neogy

Solution : The correct option is K. C. Neogy.

The first chairman of the Finance Commission of India was K. C. Neogy. He served as chairman from 1951 to 1952, marking the initial period of the Finance Commission's establishment.

Correct Answer: Ownership in the company
 

Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership in a company, conferring the shareholder with ownership rights and an ownership stake in the company. Equity shareholders have a claim on the company's assets and earnings and typically have voting rights, allowing them to participate in key decisions and the governance of the company. Unlike debt instruments such as debentures, equity shares do not entail fixed dividend payments or guaranteed redemption. Instead, dividends to equity shareholders are subject to profitability and the decisions of the company's board of directors.