Buy Back of Shares MCQ (Free) | Section 68 of Companies Act

Buy Back of Shares MCQ

Buy Back of Shares mcq
Buy Back of Shares MCQ

1. Buy back of equity shares is permissible to the limit of ___________ in a year.
a) 30%
b) 25%
c) 10%
d) 20%

2. Amount payable on buy back cannot exceed 25% of _____________ .
a) capital, premium, reserves (shareholders fund)
b) Debt
c) none of the above

3. For calculation of limit of capital and reserve, the amount as per __________ should be considered.
a) Profit & Loss Account
b) latest Balance Sheet
c) none of the above

4. The post buy back debt–equity ratio should not exceed ____________ .
a) 02:02
b) 01:02
c) 01:01
d) 02:01

5. The buyback must be completed within _________ months from the date of resolution.
a) three
b) two
c) twelve
d) six

6. The company should open___________ Account with bank to provide fund for buy back.
a) fixed deposit
b) Saving
c) Current
d) Escrow

7. Buy back of shares can be of _____________ paid up shares.
a) fully
b) partly
c) fully subscribed
d) none of the above

8. The company issue ___________ class of shares which are subject to buy back.
a) equity share
b) preference share
c) Both a & b
d) none of the above

9. Capital redemption reserve is to be created to the extent of ___________ .
a) face value of shares
b) Market Value
c) none of the above

10. Security premium can be __________ for calculating limit.
a) included
b) Excluded
c) none of the above

Answers: 1)25% 2)capital, premium, reserves (shareholders fund) 3)latest Balance Sheet 4)02:01 5)twelve 6)Escrow 7)fully 8)equity 9)face value of shares 10)included

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