Tag: organisation of commerce and management

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Questions Related to organisation of commerce and management

Multiple choice organisation of commerce and management sources of business finance - 2 equity shares share and stock equity and preference shares

The minimum subscription is the ______of the issued amount.

  1. 50%

  2. 80%

  3. 75%

  4. 90%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
 Minimum subscription refers to the smallest amount required by the company for its preparatory functions. It has been provided by the Companies Act, that the firm must obtain applications for a certain minimum number of shares before progressing ahead with the allotment of shares in order to deter companies from commencing business with scarce resources. This is called the ‘minimum subscription’. The limit of smallest subscription is 90% of the size of the subject.
The smallest number of protection which may be employed for in any new issue. The Companies Act of 1956 created a legal pattern for this, stating that an organization can only offer a certain quantity of shares to the public that the company can really pay for if the shares are drawn in by the buyer.
For e.g. if the company is issuing 100 shares to the public, then the 90% of the 100 shares should be get subscribed that is 90 shares should be subscribed to went ahead with the allotment.
Multiple choice organisation of commerce and management sources of business finance - 2 equity shares share and stock equity and preference shares

If forfeited shares are re-issued at a premium, the amount of such premium should be creted to ______________.

  1. Capital Reserve Account

  2. Securities Premium Account

  3. Revenue Reserve Account

  4. Profit & Loss Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Issue of Shares at Premium:

Shares are said to be issued at premium when they are issued at a price higher than the face value.
 
The excess of issue price over face value is referred to as ‘share premium’ or ‘security premium’, which is credited to a separate account called ‘securities premium account’.
 
For example, A Ltd. issues 10,000 shares of face value of ₹ 10 each at ₹ 12 per share. Here ₹ 2 (₹ 12 - ₹ 10) is treated as ‘security premium’.
 
The amount collected as share premium is disclosed under ‘Reserves and Surplus’ on the liabilities side of the balance sheet.
 
Section 78 of The Companies Act has laid down the following purposes for which the securities premium can be utilized:
To issue fully paid bonus shares to its members
To write off preliminary expenses of the company
To write off expenses in relation to the issue of shares or debentures of the company
To provide for premium payable on redemption of preference shares and debentures of the company
Multiple choice organisation of commerce and management sources of business finance - 2 equity shares share and stock equity and preference shares

the abbreviation 'ESOP' stands for ___________.

  1. Employee Stock Option Plan

  2. Employee Share Option Plan

  3. Employee Share Option Programme

  4. Employee Stock Option Programme
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Definition: An employee stock ownership plan (ESOP) is a type of employee benefit plan which is intended to encourage employees to acquire stocks or ownership in the company.

Description: Under these plans, the employer gives certain stocks of the company to the employee for negligible or less costs which remain in the ESOP trust fund, until the options vests and the employee exercises them or the employee leaves/retires from the company or institution.

These plans are aimed at improving the performance of the company and increasing the value of the shares by involving stock holders, who are also the employees, in the working of the company. The ESOPs help in minimizing problems related to incentives.

Multiple choice organisation of commerce and management marketing mix branding and packaging marketing marketing management

"We invite new thinking, so even more fantastic ideas can evolve. We take chances. We exceed expectations. We help dreamers dream." This is vision of....

  1. Nike

  2. Facebook

  3. Google

  4. Sony
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The provided vision statement is associated with Sony, reflecting their corporate philosophy of innovation and creativity.

Multiple choice organisation of commerce and management marketing mix branding and packaging marketing marketing management

To detemine demand for internet services in a market, companies should survey

  1. Percentage purchase made online

  2. Percentage use of the internet

  3. Percentage that have access to the internet

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

To accurately determine the demand for internet services, a company needs to understand usage habits, access levels, and purchasing behavior, making all these factors relevant.

Multiple choice organisation of commerce and management marketing mix branding and packaging marketing marketing management

Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as _____________.

  1. reduced work

  2. spoilage

  3. rework

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

Rework refers to units that do not meet specifications but can be repaired or adjusted to become saleable finished goods.