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

11. The buy back of shares can be effected by purchase from __________ .
a) open market
b) Private
c) none of the above

12. The buy back of share is governed by Section _________ of Companies Act.
a) 75
b) 78
c) 80
d) 68

13. Buy Back of shares is for ________ class of shares.
a) preference shares
b) equity shares
c) both a & b
d) none of the above

14. Partly paid shares _________ be bought back.
a) can not
b) can
c) none of the above

15. The amount paid in excess of face value of shares bought back should be debited to __________ .
a) dividend equalisation reserve
b) General Reserve
c) revaluation reserve
d) premium / reserves

16. The buy back of shares upto 10% of capital can be authorized by __________ .
a) directors
b) shareholder
c) creditors
d) none of the above

17. ________ can authorize buy back of shares between 10% and 25%.
a) creditors
b) debentureholder
c) directors
d) Shareholders

18. The shares which are subject to buy back should be physically __________ .
a) re- issued
b) ignored
c) destroyed
d) none of the above

19. The buy back of shares results in reduction of ________ capital of a company.
a) nominal
b) paid-up
c) fully paid up
d) none of the above

20. Authorized capital of a company is ________ to the extent of shares bought back.
a) disclosed
b) reduction
c) not reduced
d) none of the above

Answers: 11)open market 12)68 13)equity 14)can not 15)premium / reserves 16)directors 17)Shareholders 18)destroyed 19)paid-up 20)not reduced