{"id":17213,"date":"2022-04-01T11:18:41","date_gmt":"2022-04-01T05:48:41","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17213"},"modified":"2026-02-09T21:19:47","modified_gmt":"2026-02-09T15:49:47","slug":"underwriting-of-shares-and-debentures-mcqs","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/underwriting-of-shares-and-debentures-mcqs\/","title":{"rendered":"Underwriting of Shares and Debentures MCQ&#8217;s | Financial Accounting (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong><strong><strong>Underwriting of Shares and Debentures MCQ&#8217;s<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-1024x576.webp\" alt=\"Underwriting of Shares and Debentures MCQ&#039;s\" class=\"wp-image-17245 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs-640x360.webp 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Underwriting-of-Shares-and-Debentures-MCQs.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Underwriting of Shares and Debentures MCQ&#8217;s<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\">MCQs on other topics of Financial Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. The underwriting commission in case of debentures as per the Companies Act shall not exceed<br><\/strong>(a) 5 percent of issue price <br>(b) 10 percent of the issue price<br>(c) 2.5 percent of the issue price <br>(d) 2 per cent of the issue price<\/p>\n\n\n\n<p><strong>2. As per SEBI guidelines, the underwriting commission on equity shares<br><\/strong>(a) 10 per cent of the issue price <br>(b) 5 per cent of the issue price<br>(c) 2.5 per cent of the issue price <br>(d) 2 per cent of the issue price<\/p>\n\n\n\n<p><strong>3. The underwriting commission in case of Rs&nbsp;4 lakh preference shares capital subscribed to by the public, under Ministry of Finance guidelines, should not exceed<br><\/strong>(a) 2.5 per cent <br>(b) 1 per cent<br>(c) 2.0 per cent <br>(d) 1.5 per cent<\/p>\n\n\n\n<p><strong>4. According to the Companies Act the underwriting commission on shares should not exceed<br><\/strong>(a) 5 per cent <br>(b) 2.5 per cent<br>(c) 10 per cent <br>(d) 1 per cent<\/p>\n\n\n\n<p><strong>5. The underwriting commission is calculated on<br><\/strong>(a) net liability of the share value <br>(b) firm underwriting value of the shares<br>(c) marked application of the share value <br>(d) issue price of the shares underwritten<\/p>\n\n\n\n<p><strong>6. Unmarked applications refer to<br><\/strong>(a) Firm underwriting<br>(b) Applications issued by the company<br>(c) Applications bearing the stamp of underwriter<br>(d) Applications from the public received directly by the company without bearing any stamp of underwriter<\/p>\n\n\n\n<p><strong>7. When all the shares are underwritten by the underwriters, it is called<br><\/strong>(a) Firm underwriting <br>(b) Partial underwriting<br>(c) Complete underwriting <br>(d) None of the above<\/p>\n\n\n\n<p><strong>8. Marked applications refer to<br><\/strong>(a) Applications bearing the seal of underwriting<br>(b) Applications bearing the signature of applicants<br>(c) Applications issued by company<br>(d) None of the above.<\/p>\n\n\n\n<p><strong>9. R Limited issued a debenture of&nbsp;Rs&nbsp;100 each at&nbsp;Rs&nbsp;90. The underwriting commission will be paid on<br><\/strong>(a)&nbsp;Rs&nbsp;100 <br>(b)&nbsp;Rs&nbsp;95<br>(c)&nbsp;Rs&nbsp;105 <br>(d)&nbsp;Rs&nbsp;90<\/p>\n\n\n\n<p><strong>10. M Limited issued shares at a face Value of&nbsp;Rs&nbsp;100 with a premium of&nbsp;Rs&nbsp;20 per share. The underwriting commission will be calculated on<br><\/strong>(a)&nbsp;Rs&nbsp;100 <br>(b)&nbsp;Rs&nbsp;90<br>(c)&nbsp;Rs&nbsp;80 <br>(d)&nbsp;Rs&nbsp;120<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)2.5 percent of the issue price  2)2.5 percent of the issue price  3)1.5 per cent  4)5 per cent <\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 5)issue price of the shares underwritten  6)Applications from the public received directly by the company without bearing any stamp of underwriter  7)Complete underwriting  8)Applications bearing the seal of underwriting  9)Rs&nbsp;90  10)Rs&nbsp;120<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. When the entire issue is underwritten by only one person, his liability will be equal to<br><\/strong>(a) No. of shares underwritten<br>(b) No. of shares underwritten minus no. of shares applied for by the public<br>(c) No. of shares applied for by the public<br>(d) None of the above<\/p>\n\n\n\n<p><strong>12. Marked applications refers to<br><\/strong>(a) Applications bearing the stamp of the underwriters<br>(b) Applications carrying the signatures of public who applied for shares<br>(c) Applications carrying the stamp of company which offered the shares<br>(d) None of the above<\/p>\n\n\n\n<p><strong>13. Unmarked applications refers to<br><\/strong>(a) Applications bearing the stamp of the underwriters<br>(b) Applications from public received directly by the company without bearing any stamp of underwriters<br>(c) Applications issued by the company to underwriters<br>(d) None of the above<\/p>\n\n\n\n<p><strong>14. The underwriter is entitled to claim remuneration on<br><\/strong>(a) the issue price of shares underwritten<br>(b) the face value of shares actually purchased<br>(c) the face value of shares not purchased by him<br>(d) None of the above<\/p>\n\n\n\n<p><strong>15. If the whole of the issue of shares or debentures is underwritten it is known as<br><\/strong>(a) Partial underwriting <br>(b) Sole underwriting<br>(c) Complete or Full underwriting <br>(d) None of the above<\/p>\n\n\n\n<p><strong>16. If a part of the issue of shares or debentures is underwritten, it is termed as<br><\/strong>(a) Partial underwriting <br>(b) Complete underwriting<br>(c) Firm underwriting <br>(d) None of the above<\/p>\n\n\n\n<p><strong>17. When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares, it is termed as<br><\/strong>(a) Partial underwriting <br>(b) Firm underwriting<br>(c) Complete underwriting <br>(d) None of the above<\/p>\n\n\n\n<p><strong>18. According to the Companies Act, the commission payable to underwriter for underwriting shares should not exceed<br><\/strong>(a) 5% <br>(b) 10%<br>(c) 2.5% <br>(d) 1.5%<\/p>\n\n\n\n<p><strong>19. Commission for underwriting shares as per the guidelines issued by the Stock Exchange division of the Dept. of Economic Affairs, Ministry of Finance (F 14\/1\/SE\/85-7-5-85) and also as per SEBI guidelines should not exceed<br><\/strong>(a) 5% <br>(b) 2.5%<br>(c) 10% <br>(d) 1.5%<\/p>\n\n\n\n<p><strong>20. The underwriting commission in the case of debentures as per Companies Act, should not exceed:<br><\/strong>(a) 5% of the price at which debentures are issued<br>(b) 4% of the price at which debentures are issued<br>(c) 2\u00bd% of the price at which the debentures are issued<br>(d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">11)No. of shares underwritten minus no. of shares applied for by the public  12)Applications bearing the stamp of the underwriters  13)Applications from public received directly by the company without bearing any stamp of underwriters  14)the issue price of shares underwritten  15)Complete or Full underwriting<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 16)Partial underwriting  17)Firm underwriting  18)5%  19)2.5%  20)2\u00bd% of the price at which the debentures are issued<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. As per SEBI guidelines, commission payable to underwriters for underwriting Preference shares or Debentures upto&nbsp;Rs&nbsp;5 lakhs, should not exceed<br><\/strong>(a) 5% <br>(b) 2.5%<br>(c) 10% <br>(d) 1.5%<\/p>\n\n\n\n<p><strong>22. The Underwriting Commission in case of Preference Shares \/ Debentures beyond&nbsp;Rs&nbsp;5 lakhs as per SEBI guidelines, should not exceed<br><\/strong>(a) 2% <br>(b) 2.5%<br>(c) 5% <br>(d) 1.5%<\/p>\n\n\n\n<p><strong>23. K Ltd. issued shares of&nbsp;Rs&nbsp;1,000 each at&nbsp;Rs&nbsp;950. The Underwriting Commission will be paid on<br><\/strong>(a)&nbsp;Rs&nbsp;1,000 <br>(b)&nbsp;Rs&nbsp;950<br>(c)&nbsp;Rs&nbsp;1,950 <br>(d)&nbsp;Rs&nbsp;50<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)2.5%<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 22)2%  23)Rs&nbsp;950<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/youtu.be\/a3LyjXZQO_s\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/a3LyjXZQO_s\" target=\"_blank\" rel=\"noopener\">Video<\/a> lectures on Underwriting of Shares and Debentures MCQ&#8217;s.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17245,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4779],"class_list":["post-17213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-underwriting-of-shares-and-debentures-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17213"}],"version-history":[{"count":6,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17213\/revisions"}],"predecessor-version":[{"id":41937,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17213\/revisions\/41937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17245"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}