Ownership
Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Equity Shares and Preference Shares
What is the main characteristic of equity shares?
Option 1: Fixed dividend payments
Option 2: No voting rights
Option 3: Ownership in the company
Option 4: Guaranteed redemption
Correct Answer: Ownership in the company
Solution : The correct answer is (c) Ownership in the company
Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's
Question : Which of the following statement is correct? Statement 1: Marketing focus is on achieving maximum satisfaction of the customers needs. Statement 2: The main focus of the selling is to transfer of ownership of the product from the seller to the buyer.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are true
Solution : Marketing scope is broad. Marketing main focuses on achieving maximum satisfaction of the customers needs. Selling focus is on the transfer of ownership of the product from the seller to the buyer. In the marketing with the view to earning profit,priority is given
Question : Case Study 32
RST Enterprises is a conglomerate that wants to trade its shares on a stock exchange. The company's management is in the process of selecting a brokerage firm.
Question :
What role does the selected brokerage firm play in the trading process for RST Enterprises?
Option 1: Matching buy and sell orders
Option 2: Transferring ownership of shares
Option 3: Facilitating transactions
Option 4: Listing on stock exchange
Correct Answer: Facilitating transactions
Solution : The correct answer is (c) Facilitating transactions
The selected brokerage firm plays the role of facilitating transactions in the trading process for RST Enterprises. Brokerage firms act as intermediaries that facilitate the buying and selling of securities on behalf of their clients. They enable
Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Debentures and Financial Instruments
What makes debentures distinct from equity shares?
Option 1: Debentures provide ownership rights
Option 2: Debentures pay fixed dividends
Option 3: Debentures are short-term securities
Option 4: Equity shares are issued by governments
Correct Answer: Debentures pay fixed dividends
Solution : The correct answer is (b) Debentures pay fixed dividends
To elaborate further, debentures are debt instruments where the issuing company agrees to pay a fixed rate of interest to the debenture holders at regular intervals until the maturity date. On the other
Question : Case Study: LMN Ventures - Financing Innovation and Research
LMN Ventures is a research-driven technology company aiming to innovate and develop cutting-edge products. The company is exploring various sources of business finance to support its research and development endeavors.
Question:Different Sources of Finance
What is the primary characteristic of equity shares?
Option 2: Ownership in the company
Option 3: Guaranteed redemption
Option 4: No voting rights
Solution : The correct answer is (b) Ownership in the company
Equity shares represent ownership in a company and entitle shareholders to a portion of the company's profits, distributed in the form of dividends. Unlike debt instruments, such as bonds, equity shares do not
Question : Peasants' movements in India have historically fought for:
Option 1: The abolition of monarchy
Option 2: The implementation of digital technology in agriculture
Option 3: The rights to land ownership and fair agricultural practices
Option 4: The promotion of urbanization
Correct Answer: The rights to land ownership and fair agricultural practices
Solution : Peasants' movements in India have historically fought for the rights to land ownership and fair agricultural practices, addressing issues such as tenancy, land redistribution, and agricultural pricing.
Question : Case Study 30
LMN Corporation is a conglomerate that has executed trades on a stock exchange. The company's management is preparing for the settlement process.
What does the settlement process involve after LMN Corporation executes trades on the stock exchange?
Option 1: Selecting a broker
Option 2: Matching buy and sell orders
Option 3: Transferring ownership and funds
Option 4: Opening a demat account
Correct Answer: Transferring ownership and funds
Solution : The correct answer is (c) Transferring ownership and funds
The settlement process, after LMN Corporation executes trades on the stock exchange, involves transferring ownership and funds. In this phase, the actual transfer of securities (ownership) and funds (money) occurs between the buyer
Question : Case Study: ABC Hospitality believes in empowering its employees to make decisions and take ownership of their work. This reflects the application of which principle of management?
Option 1: Unity of command
Option 2: Initiative
Option 3: Unity of command
Option 4: Order
Correct Answer: Initiative
Solution : The correct answer is (b) Initiative
The principle of "Initiative" in management encourages employees to take ownership, make decisions, and propose innovative solutions in their work. It involves empowering employees to act independently, show creativity, and contribute proactively to the organization's goals. ABC Hospitality believing
Question : The Ayodhya dispute primarily revolves around:
Option 1: A historical trade route
Option 2: Access to water resources
Option 3: Ownership of a religious site
Option 4: Border demarcation between states
Correct Answer: Ownership of a religious site
Solution : The Ayodhya dispute primarily revolves around the ownership of a religious site, with Hindu and Muslim communities claiming the land where the Babri Masjid once stood and where Hindus believe Lord Ram was born.
Question : Which of the following statement is correct? Statement 1: Channel of distribution includes mainly agents,wholesaler and retailers. Statement 2: Channel distribution refers to that path through which the ownership as well as possession of goods transfer to the consumer from the producer.
Solution : Channel of distribution refers to that path through which the product reach to the consumer. In this path many people and firms participate they are called middleman or intermediary. It includes mainly agents wholesaler and retailers.
Hence, option A is correct.
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