Free Commerce Objective Questions

Free Commerce Objective Questions

1. A company invited application for subscription of 5,000 shares. The application were received for 6,000 shares. The shares were allotted on pro-rata basis. If X has applied for 180 shares how many shares would be allotted to him ?
(A) 180 shares (B) 200 shares
(C) 150 shares (D) 175 shares
See Answer:

2. Which of the following is not a banking related term?
(A) SME Finance (B) Equinox
(C) Overdraft (D) Sanctioning Authority
See Answer:

3. The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of Bonus Share will be–
(A) Rs. 50,000 (B) Rs. 55,000
(C) Rs. 45,000 (D) Rs. 57,000
See Answer:

4. R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by–
(A) Rs. 4,00,000 (B) Rs. 5,00,000
(C) Rs. 3,20,000 (D) Rs. 4,80,000
See Answer:

5. Depletion method of depreciation is used in case of–
(A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc.
(C) Machinery, Building, etc. (D) Books
See Answer:

6. A special resolution is passed in a company meeting by–
(A) Simple majority (B) 2/3 majority
(C) 3/4 majority (D) None of the above
See Answer:

7. Articles of Association of a company can be altered by–
(A) An ordinary resolution (B) A resolution with a special notice
(C) A special resolution (D) None of the above
See Answer:

8. The liability of the shareholders of a public limited company is limited to the extent of–
(A) Par value of the share (B) Paid up value of the shares
(C) Market price of the shares (D) Intrinsic value of the shares
See Answer:

9. The first directors of a company are appointed by–
(A) Promoters (B) Government
(C) Shareholders (D) Company Law Board
See Answer:

10. In a public limited company, the minimum number of directors are–
(A) 2 (B) 3
(C) 5 (D) None of the above
See Answer:

11. General Insurance Corporation of India was set up in–
(A) 1956 (B) 1972
(C) 1980 (D) 2000
See Answer:

12. ‘Salvage Charges’ is related to–
(A) Life Insurance (B) Marine Insurance
(C) Fire Insurance (D) None of the above
See Answer:

13. In ‘Life Insurance Contract’ the insurable interest is examined at the time of–
(A) Entering the contract (B) Filing the claim
(C) Both (A) and (B) (D) Never
See Answer:

14. In connection with marine insurance the ‘Doctrine of Utmost Good Faith’ is based on the concept of–
(A) Disclosure (B) Concealment
(C) Misrepresentation (D) None of the above
See Answer:

15. Which statement is not true in respect of a Balance Sheet ?
(A) It is an account
(B) It is prepared every month
(C) It is prepared to check the mathematical accuracy
(D) All the above
See Answer:

16. Few items of P/L A/c of a company are–
Sales – Rs.1,60,000
Closing stock – Rs.38,000
Non-operating Expenses – Rs.800
Non-operating Income – Rs.4,800
Net Profit – Rs.28,000
What is the Operating Profit Ratio ?
(A) 18% (B) 20%
(C) 15% (D) 57%
See Answer:

17. Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ?
(A) 40% (B) 50%
(C) 60% (D) 75%
See Answer:

18. Members of a company may apply to which one among the following for relief under the Companies Act, 1956 in cases of oppression ?
(A) Central Government
(B) High Court of Judicature
(C) National Company Law Tribunal
(D) National Company Law Appellate Tribunal
See Answer:

19. A company limited by shares has to call the statutory meeting within a period of not less than one month and not more than six months. This period is counted with reference to which one of the following ?
(A) The date of incorporation
(B) The date at which the company is entitled to commence business
(C) The date of actual receipt of certificate of incorporation
(D) The date of actual commencement of business
See Answer:

20. Which among the following is eligible to issue Shelf Prospectus ?
(A) Any company contemplating for public issue of securities
(B) Any public financial institution
(C) Only manufacturing companies
(D) Only foreign companies engaged in trading in India
See Answer:


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