Tag: business organisation

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Questions Related to business organisation

Multiple choice business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

________ are concerned about ethics, social responsibility and reputation of the company in which they invest.

  1. Employees

  2. Employers

  3. Investors

  4. Students
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Investors are concerned about ethics, social responsibility and reputation of the company in which they invest. Investors do a critical evaluation of the background of the company before investing. Critical evaluation involves the ethical practices and social responsibility performed by the company.

Multiple choice business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

A speculator who buys securities in anticipation of increase in prices is called ___________.

  1. Stag

  2. Bull

  3. Bear

  4. None of them
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An investor or speculator is a person who subscribes to a new issue, expecting the price of the stock to rise immediately upon the start of trading is known as stag. The sole aim of a stag is to sell the shares soon after the allotment to realize a quick profit.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

Primary and Secondary markets.

  1. Compete with each other

  2. Complement each other

  3. Function independently

  4. Control each other
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Primary and secondary markets complement each other. ... Secondary market deals in the purchase and sale of the existing securities. That is, once the securities are issued in primary market, they are then traded in the secondary market. It is in this sense that both the markets complement each other.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

 The investors in Primary market are ______.

  1. banks

  2. financial institutions

  3. insurance companies

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The investors in Primary market are banks, financial institutions and insurance companies. The primary market is also known as the new issues market, which deals with new securities being issued for the first time.  Primary market directly contributes in capital formation because in primary market company goes directly to investors and utilize the funds for investment purpose. Primary market does not include finance in the form of loan from financial institutions.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

The lead manager coordinates all the activities among intermediaries connected with the e-IPOs.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The lead manager coordinates all the activities among intermediaries connected with the e-IPOs- this is a true statement. A company proposing to issue capital to the public through on-line system of stock exchange has to enter into an agreement with stock exchange. This is called an Initial Public Offer or IPO.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

The process of economic development is facilitated by the existence of a well functioning capital market.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The process of economic development is facilitated by the existence of a well functioning capital market- this is a true statement. The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.  Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

Capital market means _____________.

  1. Mutual Funds

  2. Money Market

  3. Securities Market

  4. Banking Business
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. It is the market for securities, distinct from the money market which deals in short-term debt.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as _________________.

  1. fundamental structure

  2. fundamental adjustment

  3. fundamental betas

  4. fundamental operations
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as fundamental betas. Fundamental betas can be defined as a measure which helps to determine the potential risk of a security using current and future predicted fundamental information of the company. It includes market related and financial data.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

A stock that provides regular dividends even during economic downturn is called _______.

  1. listed

  2. crow stock

  3. income stock

  4. defensive stock
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A stock that provides regular dividends even during economic downturn is called listed. Listed stocks can be referred to those stocks which are officially traded in Stock Exchange. These listed stocks may adhere to the listing requirements of the Exchange Board.