Question : Case Study 81

OPQ Ltd. is a technology startup planning to trade its shares on a stock exchange. The company's management is reviewing the protective functions of SEBI.

Question : 

What is one of the protective functions of SEBI that ensures fair practices in the securities market?

Option 1: Providing loans to companies
 

Option 2: Facilitating mergers and acquisitions
 

Option 3: Regulating interest rates

Option 4: Prohibiting insider trading

Question : The 1991 economic policy led to the abolition of the:

Option 1: Planning Commission

Option 2: Reserve Bank of India (RBI)

Option 3: Central Board of Direct Taxes (CBDT)

Option 4: Ministry of Finance

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 : Different Sources of Finance

How can PQR Enterprises use retained earnings as a source of finance for its diversification?

Option 1: By selling company assets
   

Option 2: By raising funds through IPOs
   

Option 3: By utilizing accumulated profits

Option 4: By issuing preference shares

Question : Case Study 80

LMN Corporation is a well-established company planning to raise funds for its expansion projects. The company's management is considering the regulatory functions of SEBI.

Question :

What is the primary regulatory role of SEBI?

Option 1: Allocating resources to companies
 

Option 2: Facilitating trading on stock exchanges
 

Option 3: Protecting the rights of investors

Option 4: Providing loans to companies

Question : Case Study: PQR Software Solutions

PQR Software Solutions is a startup that provides innovative software solutions. The company is planning to introduce a new customer support system.

Question:

The step PQR Software Solutions should take to identify potential risks and uncertainties in the new customer support system is:

Option 1: Evaluating alternatives
 

Option 2: Setting objectives and goals
 

Option 3: Identifying potential risks

Option 4: Allocating resources

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 : Equity Shares and Preference Shares

If PQR Enterprises issues redeemable preference shares, what does this mean?

Option 1: Shareholders can convert shares into debentures
 

Option 2: Preference shareholders can vote on company decisions
  

Option 3: The company has the option to buy back the shares

Option 4: Dividends on these shares are fixed and guaranteed

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 : Different Sources of Business Finance

XYZ Ltd. is considering borrowing funds by issuing long-term debt securities. What are these securities called?

Option 1: Equity shares
 

Option 2: Preference shares
  

Option 3: Debentures

Option 4: ADRs

Question : Case Study 2:

XYZ Ltd. is a well-established pharmaceutical company that is planning to diversify its product range. The HR department is faced with the challenge of sourcing and training employees for the new divisions. Evaluate the following scenarios and choose the correct option:

Question:

To ensure that employees possess the necessary technical skills, XYZ Ltd. uses external training programs and workshops. Which aspect of staffing is this related to?

Option 1: Recruitment
    

Option 2: Selection
    

Option 3: Training and development

Option 4: Performance appraisal

Question : Case Study: ABC Retail Chain

ABC Retail Chain is a popular brand with multiple stores across the country. They are planning to expand their product range by adding organic and eco-friendly products.

Question:

In the planning process for expanding its product range, what should ABC Retail Chain do after developing premises?

Option 1: Identifying various courses of action
 

Option 2: Evaluating alternative courses of action
 

Option 3: Setting objectives and goals

Option 4: Allocating resources

Question : Case Study 34

ABC Ltd. is a conglomerate planning to expand its operations. The company's management is considering the roles of SEBI in the financial market.

Question : 

Which of the following is not a function of SEBI?

Option 1: Regulatory functions
 

Option 2: Protective functions
 

Option 3: Allocation of resources

Option 4: Developmental functions