MCQ on Underwriting of Shares and Debentures: Check the below Corporate and Management Accounting MCQ on Underwriting of Shares and Debentures with Answers Pdf free download. Corporate and Management Accounting MCQ on Underwriting of Shares and Debentures Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Underwriting of Shares and Debentures with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Underwriting of Shares and Debentures Questions with Answers based on the latest syllabus.

MCQ on Underwriting of Shares and Debentures

1. Unmarked application has to be distributed to underwriters in the ratio of
(A) Gross Liability Ratio
(B) Last Agreed Ratio
(C) Net Liability Ratio
(D) Equal ratio

2. Who of the following generally acts as an underwriter?
(A) Financial institutions
(B) Banks
(C) Merchant bankers
(D) All of the above

3. A definite commitment by the underwriter to take up a specified number of shares or debentures of a company irrespective of the number of shares or debentures subscribed for by the public is known as
(A) Definite underwriting
(B) Pakka underwriting
(C) Marked underwriting
(D) Firm underwriting

4. In case of issue of shares, the under-writing commission shall not exceed
(A) 5% of the issue price
(B) 5% of the nominal value
(C) 10% of the market price
(D) 10% of the nominal value

5. In case of issue of debentures, underwriting commission shall not exceed
(A) 2.5% of the nominal value
(B) 2.5% of the issue price
(C) 2.5% of the market price
(D) 3 .5% of the face value

6. In case of issue of shares, the rate of underwriting commission paid or agreed to be paid shall not exceed:
(A) 5% of the issue price
(B) A rate authorized by the articles
(C) 5% of the issue price or a rate authorized by the articles, whichever is more
(D) 5% of the issue price or a rate authorized by the articles, whichever is less

7. Applications bearing the stamp of the respective underwriter are called as:
(A) Firm applications
(B) Stamped applications
(C) Underwritten application
(D) Marked applications

8. In case of issue of debentures, the rate of underwriting commission paid or agreed to be paid shall not exceed:
(A) 2.5% of the issue price
(B) A rate authorized by the articles
(C) 2.5% of the issue price or a rate authorized by the articles, whichever is more
(D) 2.5% of the issue price or a rate authorized by the articles, whichever is less

9. A broker
(A) Undertakes to find buyers who are willing to buy shares and debentures
(B) Does not guarantees the sale of shares and debentures
(C) Both (A) and (B)
(D) (B) only not (A)

10. An underwriter
(A) Guarantees that if the public does not take up all shares the underwriters will purchase the remaining shares
(B) Agrees to receive an underwriting commission at the prescribed percentage allowed as per law
(C) Both (A) and (B)
(D) (A) only not (B)

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By Team Learning Mantras