Deck 5: Buyback, Capital, and Restructuring in Companies

Question 1

Percentage of buyback of shares should not exceed --------- of the aggregate of the paid up capital and free reserves of the company.

A)25%
B)50%
C)40%
D)51%

Answer 1

25%

Question 2

Ratio of aggregate of secured and unsecured debt owned by the company after buyback should not be more than ---------the paid up capital and free reserves.

A)Equal
B)Twice
C)Thrice
D)Half

Answer 2

Twice

Question 3

Declaration of solvency shall be signed by at least ------- directors one of whom shall be the managing director.

A)2
B)3
C)4
D)5

Answer 3

2

Question 4

Letter of offer shall be dispatched to the shareholders within---------- days from its filing with Registrar of Companies containing factual information.

A)21
B)15
C)30
D)10

Question 5

The offer for buyback shall remain open for minimum period of -------days.

A)21
B)15
C)30
D)10

Question 6

Every buyback shall be completed within a period of------------------- from the date of passing of board or special resulation.

A)One year
B)Six months
C)Three months
D)One month

Question 7

Extinguish and physically destroy the shares and other specified securities buyback within ---- days of the last date of completion of a buyback.

A)21
B)15
C)30
D)07

Question 8

Shares to be bought back must be ---------

A)fully paid up
B)Unpaid shares
C)Forfeited shares
D)Preference shares

Question 9

Approval of Board of directors upto ------ % of the total paid up equity capital and free reserves of the company.

A)10
B)15
C)25
D)50

Question 10

----------- growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect.

A)Organic
B)Inorganic
C)Instant
D)Gradual

Question 11

In -------- swap merger, the holders of the target company's stock receive shares of the acquiring company's stock.

A)Stock
B)Debt -equity
C)Interest
D)Investment

Question 12

-------------------- Capital can be considered as the permanent capital of company.

A)Equity share
B)Preference share
C)Working
D)Fixed

Question 13

For companies that publicly traded,negative reactions to the restructure can result in ----- stock prices.

A)Dropping
B)Increasing
C)Stabilising
D)Mobilizing

Question 14

--------- is a foreign currency denominated instrument tradeable on stock exchange generally in USA.

A)ADRs
B)GDRs
C)DRs
D)SDRs

Question 15

----------- is a foreign currency denominated instrument tradeable on stock exchange in countries other than USA.

A)ADRs
B)GDRs
C)DRs
D)SDRs

Question 16

Well managed companies make sufficient profit and retain in the form of -----------.

A)Free Reserve
B)Deposits
C)Investment
D)Financial instruments

Question 17

With ---------------- , lender can get a comprehensive financial footprint of a borrower.

A)Credit report
B)Project report
C)Feasibility report
D)Proposal

Question 18

The restructuring of a corporation should be undertaken if ---------------

A)It can prevent an unwanted takeovers
B)It is expected to create value for shareholders
C)It is expected to increase the firm's revenue
D)The interest of bondholders are not negatively affected

Question 19

In the long run, and successful acquisition is one that

A)Enables the acquirer to make an all equity purchase
B)Enables the acquirer to diversify it's assets base
C)Increase the market price of the acquirer stock
D)Increase financial leverage

Question 20

One means for a company to go private is ----------

A)Divestiture
B)The pure play
C)LBO
D)The prepacked reorganisation

Question 21

Which of the following reason do companies restrucre for? ----------

A)Change the ownership
B)Just because they want to
C)To stay competitive
D)To overcome weakness

Question 22

When one company buys all or parts of another company is called -----------.

A)Merger
B)Demerger
C)Recapitalisation
D)Acquisition

Question 23

An acquisition is the same thing as --------.

A)a merger
B)a spin-off
C)a takeover
D)an amalgamation

Question 24

The way in which merger and amalgamation occur do not include --------------

A)Horizontal integration
B)Vertical integration
C)Diversification
D)Conglomerate takeovers

Question 25

The good reason for merger and amalgamation do not include -----------

A)Complementing business strategies
B)Increasing earning per share
C)Supporting value added growth
D)Stopping a competitor merging or takeover