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Question : Questions : Equity Shares and Preference Shares

Statement 1: Equity shareholders have ownership rights and voting power in company decisions.

Statement 2: Equity shareholders do not receive any dividends.

Option 1: Statement 1 is true, and statement 2 is false.
  

Option 2: Statement 1 is false, and statement 2 is true.
    

Option 3: Both statements 1 and 2 are true.

 

Option 4: Both statements 1 and 2 are false.

Team Careers360 21st Jan, 2024

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.

6 Views

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Equity Shares and Preference Shares

Which feature makes equity shares different from preference shares?

Option 1: Fixed dividend payments
 

Option 2: Ownership rights in decision-making
    

Option 3: Redemption option

 

Option 4: No voting rights

Team Careers360 17th Jan, 2024

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.

11 Views

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.

Question : 

During the settlement process, what is transferred from the seller to the buyer?

Option 1: Ownership of shares
 

Option 2: Brokerage fees
 

Option 3: Dividends

 

Option 4: Trading orders

Team Careers360 22nd Jan, 2024

Correct Answer: Ownership of shares
 


Solution : The correct answer is (a) Ownership of shares

During the settlement process, what is transferred from the seller to the buyer is ownership of shares. The seller transfers ownership of the shares to the buyer, and these shares are moved from the seller's demat account to the buyer's demat account, completing the transaction. Brokerage fees , dividends , and trading orders are not transferred from the seller to the buyer during the settlement process. Brokerage fees are fees paid to the broker, dividends are paid by the company to shareholders, and trading orders are instructions for buying or selling securities.

8 Views

Question : How do historians use Ain-i-Akbari to understand the impact of Akbar's administrative reforms on rural society?

Option 1: By studying the changes in agricultural productivity

Option 2: By examining the shifts in land ownership patterns

Option 3: By analyzing the modifications in taxation policies

Option 4: By exploring the influence on rural-urban migration

Team Careers360 19th Jan, 2024

Correct Answer: By examining the shifts in land ownership patterns


Solution : Correct Option: Option 2
Explanation: Historians use Ain-i-Akbari to understand the impact of Akbar's administrative reforms on rural society by examining the shifts in land ownership patterns, which were a crucial aspect of his efforts to restructure agrarian relations.

7 Views

Question : Case Study 5: Empowerment and Decision-making at LMN Manufacturing

LMN Manufacturing emphasizes empowering employees and involving them in decision-making. Consider the following scenario to answer the questions.

Question :

The supervisor at LMN Manufacturing actively seeks input from employees and encourages them to take ownership of their tasks. This aligns with which need level in Maslow's hierarchy?

Option 1: Self-actualization needs
 

Option 2: Physiological needs
 

Option 3: Safety needs

 

Option 4: Esteem needs

Team Careers360 20th Jan, 2024

Correct Answer: Self-actualization needs
 


Solution : The correct answer is (a) Self-actualization needs.

Self-actualization needs, according to Maslow's hierarchy of needs, are at the top of the pyramid and involve fulfilling an individual's desire to achieve their full potential, pursue personal growth, and attain self-fulfillment. By seeking input and encouraging ownership, the supervisor is empowering employees to take control of their work and contribute their best efforts, aligning with the self-actualization level of needs. This approach supports personal and professional growth and enables individuals to fulfill their potential within the workplace.

1 View

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 1: Fixed dividend payments
  

Option 2: Ownership in the company
 

Option 3: Guaranteed redemption

 

Option 4: No voting rights

Team Careers360 24th Jan, 2024

Correct Answer: Ownership in the company
 


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 come with fixed dividend payments, guaranteed redemption, or specific fixed interest rates. Additionally, equity shareholders typically have voting rights, allowing them to participate in important decisions and the governance of the company.

20 Views

Question : Case Study 75

ABC Corporation is a well-known company with its shares listed on a stock exchange. The company's management is reviewing the concept of dematerialization.

Question : 

In dematerialization, what replaces physical share certificates?

Option 1: Trading orders
 

Option 2: Dividend checks
 

Option 3: Electronic records

 

Option 4: Ownership deeds

Team Careers360 17th Jan, 2024

Correct Answer: Electronic records

 


Solution : The correct answer is (c) Electronic records

In dematerialization, physical share certificates are replaced by electronic records. Dematerialization involves converting physical share certificates, which are paper-based, into an electronic format. The ownership and details of the shares are recorded electronically, and these electronic records are stored in a dematerialized or demat account. This process eliminates the need for physical share certificates and instead relies on digital records to represent ownership of shares.

8 Views

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.

Question : 

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

Team Careers360 20th Jan, 2024

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 and the seller. The securities are moved from the seller's demat account to the buyer's demat account, and the funds are transferred from the buyer to the seller.

5 Views

Question : Case Study: UVW Industries - Sustainable Financing for Green Initiatives

UVW Industries is a company committed to sustainable practices and is undertaking environmentally friendly initiatives. The company is exploring various sources of business finance to support its green projects.

Questions : Different Sources of Finance

How do debentures differ from equity shares in terms of ownership and returns?

Option 1: Debentures provide ownership rights
  

Option 2: Debentures pay fixed dividends
    

Option 3: Equity shares have fixed interest rates

   

Option 4: Equity shares represent short-term borrowing

Team Careers360 16th Jan, 2024

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. Debentures are considered to be a safer investment than equity shares, as debenture holders have a higher claim on the company's assets in the event of liquidation. However, this also means that debenture holders earn a lower return than equity shareholders.

8 Views

Question : Case Study: UVW Industries - Sustainable Financing for Green Initiatives

UVW Industries is a company committed to sustainable practices and is undertaking environmentally friendly initiatives. The company is exploring various sources of business finance to support its green projects.

Questions : Equity Shares and Preference Shares

What is the main advantage of equity shares for UVW Industries?

Option 1: Fixed dividend payments
 

Option 2: Ownership without dilution
 

Option 3: Higher interest payments

 

Option 4: No redemption option

Team Careers360 16th Jan, 2024

Correct Answer: Ownership without dilution
 


Solution : The correct answer is (b) Ownership without dilution

Equity shares represent ownership in the company, allowing shareholders to have a stake in the business without the obligation of fixed dividend payments. By issuing equity shares, UVW Industries can raise capital and fund its operations without taking on debt. Additionally, it does not have the obligation to make fixed interest or dividend payments, providing greater financial flexibility. However, it's important to note that issuing equity shares may dilute the ownership stake of existing shareholders, but it does not involve a fixed payment obligation as with debt instruments like debentures.

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