Deck 45: Underwriting and Creditor Questions in Company Affairs

Question 1

When the entire issue is underwritten by only one persone, it is called

A)Firm underwriting
B)Partial underwriting
C)Sole or Single Underwriting
D)None of the above

Answer 1

Sole or Single Underwriting

Question 2

When commission is due underwriter A/c is

A)Credited
B)Debited
C)Transfer to Capital A/c
D)None of the above

Answer 2

Credited

Question 3

A company issued 2000 equity shares which were underwritten by A. The company received applications for 2400 shares. Hence A will get his commission on the issue price of

A)24000 shares
B)2000 shares
C)20000 shares
D)2400 shares

Answer 3

2000 shares

Question 4

P Ltd. issued shares of Rs.100 each at Rs.95.The Underwriting Commission will be paid on

A)100
B)95
C)195
D)105

Question 5

Unmarked applications are known as

A)Direct application
B)Applications issued by the company
C)firm underwriting
D)Applications bearing the stamp of underwriter

Question 6

If the half of the issue of shares or debentures is underwritten it is known as

A)Complete or Full Underwriting
B)Sole Underwriting
C)Firm Underwriting
D)Partial Underwriting

Question 7

S Ltd. issued shares at the face value of Rs.1000 with a premium of Rs.200 per share. The underwriting commission will be calculated on

A)Rs.1000
B)Rs.900
C)Rs. 800
D)Rs.1200

Question 8

In order to spread risk of under subscription, The principal underwriters may appoint

A)Sub Underwriter
B)Sole Underwriter
C)Partial Underwriter
D)Principal Underwriter

Question 9

An additional commission is paid by the company to the principal underwriters to encourage

A)Firm Underwriter
B)Partial Underwriter
C)Sub Underwriter
D)Sole Underwriter

Question 10

In which case, liability arises from both open and firm underwriting

A)Partial Underwriter
B)Firm Underwriter
C)Sole Underwriter
D)Sub Underwriter

Question 11

How many individuals or institutions companies can appoint to manage the issue of its shares

A)One or more
B)Only one
C)Only five
D)Can not appoint

Question 12

If broker find subscribers, he gets

A)Commission
B)Subscription
C)Brokerage
D)Non of the above

Question 13

The unerwriting may be done by many underwriters in an agreed ratio,is known as

A)Sub Underwriter
B)Joint underwriter
C)Partial Underwriter
D)Firm Underwriter

Question 14

Remuneration to investigator upon investigation of the affairs of company is treated as

A)Secured creditor
B)Over-riding preferential creditor
C)Preferential creditor
D)Unsecured creditor

Question 15

Amount of Retirement benefits of employees exceeding ` 20,000 per employee is treated as

A)Secured creditor
B)Over-riding preferential creditor
C)Preferential creditor
D)Unsecured creditor

Question 16

Interest on debentures and unsecured loan is payable upto the date of actual payment

A)if the company is solvent
B)if the company is insolvent
C)whether the company is solvent or insolvent
D)none of the above

Question 17

Accrued holiday remuneration becoming payable to any workman is treated as

A)Secured creditor
B)Over-riding preferential creditor
C)Preferential creditor
D)Unsecured creditor

Question 18

Which of the following is not a preferential creditors

A)All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee.
B)Compensation under workmen's compensation act.
C)Amount due under empoyees state insurance act for 12 months previous to the winding up
D)Amount due to employee undeer amalgamation or reconstruction

Question 19

When Winding Up Takes Place, Shareholders Are Described As

A)Member
B)Creditor
C)Debtor
D)Contributor

Question 20

The deficiency shown by deficiency account will be equal to the deficiency revealed by

A)Liquidator final statement of account
B)Liquidator report
C)Statement of affairs
D)none

Question 21

Insolvent Companies Can Be Liquidated

A)Compulsory
B)Optional
C)Order
D)All the Above

Question 22

Surplus Of Amount In Statement Of Affairs Should Be Distributed To

A)Creditors
B)Government
C)Liquidator
D)Equity Share Holders

Question 23

If the Assets of A ltd having Book Value of Rs 10,00,000 are taken over at Rs 15,00,000 and Liabilities having a book value of Rs 5,00,000 are taken over at Rs 4,00,000 than Purchase Consideration payable would be

A)Rs 5,00,000
B)Rs 11,00,000
C)6,00,000
D)Rs 10,00,000

Question 24

If ABC Limited and DEF Limited are taken over by a new company AKSHAY Limited

A)it is called absorption
B)it is called Internal Reconstruction
C)it is called external reconstruction
D)It is called as Amalgamatiom