Correct Answer: 51%

Solution : The correct answer is 51%.

The General Insurance (Amendment) Act of 2021 removes the provision that required the Central Government to have at least 51% ownership in four subsidiaries of General Insurance Company, namely, National Insurance, New India Assurance, Oriental Insurance, and United India Insurance. The bill increases the limit on foreign investment in an Indian insurance company from 49% to 74% and removes restrictions on ownership and control.

Correct Answer: Initiative

Solution : The correct answer is (b) Initiative

The principle of "Initiative" in management encourages employees to take ownership, show creativity, and propose innovative solutions in their work. It involves empowering employees to act independently, take responsibility for their tasks, and contribute proactively to the betterment of the organization. XYZ Tech Solutions encouraging its employees to take ownership and propose innovative solutions aligns with the principle of initiative, fostering a culture of active participation and continuous improvement within the company.

Correct Answer: Debentures pay fixed dividends
  

Solution : The correct answer is (b) Debentures pay fixed interest

This statement is correct. Debentures pay fixed interest to debenture holders, not dividends. The interest rate is predetermined and agreed upon at the time of issuing the debentures.

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 profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed dividend payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the board of directors.

Correct Answer: Debentures provide ownership rights
 

Solution : The correct answer is (a) Debentures provide ownership rights

Debentures represent a form of debt where the holders (debenture holders) are creditors to the company and do not possess ownership rights in the company. They are entitled to receive a fixed rate of interest and the repayment of the principal amount at maturity.

On the other hand, equity shares represent ownership in the company and provide shareholders with ownership rights, including voting rights and the right to share in the company's profits (through dividends). Unlike debentures, equity shares do not involve fixed interest payments or repayment at maturity.

Correct Answer: Statement 1 is true, and statement 2 is false.
  

Solution : The correct answer is (a) Statement 1 is true, and statement 2 is false.

Statement 1 is true. Equity shareholders have ownership rights in the company, and they possess voting power in company decisions. They can participate in voting on important matters affecting the company.

Statement 2 is false. Equity shareholders are eligible to receive dividends from the company. In fact, one of the benefits of owning equity shares is the potential to receive dividends when the company distributes profits to its shareholders.

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

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

GDRs and ADRs are both financial instruments that enable companies to raise funds in international markets by issuing depositary receipts. GDRs are issued and traded outside the United States, while ADRs are specifically issued and traded in the United States. They allow companies to tap into a larger pool of investors and access capital from international markets without directly listing their shares on foreign stock exchanges. These instruments represent claims to shares in the issuing company and facilitate investment from investors in different regions around the world.

Correct Answer: Initiative

Solution : The correct answer is (b) Initiative

The principle of "Initiative" in management encourages employees to take ownership of their work, show creativity, and propose innovative solutions. It involves promoting a proactive approach among employees to suggest improvements, take responsibility for their tasks, and contribute to the betterment of the organization. XYZ Motors encouraging its employees to take ownership and propose innovative solutions aligns with the principle of initiative, fostering a culture of active participation and continuous improvement within the company.

Correct Answer: Settlement

Solution : The correct answer is (c) Settlement

The term used to describe the process of transferring ownership of securities from a seller to a buyer is "settlement." In the context of stock trading, after the buy and sell orders have been matched and executed (which is the "execution of the order"), the process of settling the trade involves transferring the ownership of the securities and the funds between the parties involved. It includes the confirmation, verification, and actual transfer of the securities and payment. This ensures that the buyer receives the securities they purchased and the seller receives the funds for the sale.

Correct Answer: Ownership rights in decision-making
    

Solution : The correct answer is (b) Ownership rights in decision-making

Equity shares provide ownership rights to shareholders, giving them the ability to participate in the decision-making process of the company, such as voting on key issues and electing the board of directors. On the other hand, preference shares typically do not grant voting rights, and while they entitle shareholders to fixed dividend payments before equity shareholders, they don't carry the same level of decision-making influence.