SP Model Question Paper 2021 [Sample Paper]

SP Model Question Paper 2021 [Sample Paper].png

SP Model Question Paper 2021 [Sample Paper]

Q.1 A) A select the correct option ad rewrite the sentence                                                          [5]

  1. ……………… refers to capital made up of Equity and preference shares a) Share capital b) Debt capital               c) Reserve fund
  2. ………………is related to money and money management.  a) Production b) Marketing      c) Finance
  3. ……………..is the smallest unit in the total share capital of the company. a) Debenture b) Bonds              c) Share
  4. A company can issue ……………… convertible debentures. a) Only partly b) Only fully        c) Partly or fully
  5. The holder of preference share has the right to receive……………..rate of divided. a) fixed b) fluctuating     c) lower

Q.1 B) Match the pairs                                                                                 [5]

Group ‘A’ Group ‘B’
a) Capital budgeting 1) Sum of current assets
b) Fixed capital 2) Deals with acquisition and use of capital
c) Working capital 3) Fixed liabilities
d) Capital structure 4) Sum of current liabilities
e) Corporate finance 5) Fixed assets
  6) Investment decision
7) Financing decision
8) Deals with acquisition and use of assets
9) Mix up of various sources of funds
10) Product mix

 Q.1 C) Give one word or phrase or term                                            [5]

  1. Offering of shares by a company to the public for the first time.
  2. A document of title of ownership of shares.
  3. The holders of these shares are entitled to participate in the surplus profit.
  4. Name the shareholders who participate in the management.
  5. Account to be created for the redemption of debentures.

Q.1 D) State True or False                                                 [5]             

  1. Equity share capital is known as venture capital.
  2. Equity shareholders enjoy a fixed rate of dividends.
  3. Only fully paid-up shares can be forfeited.
  4. Bondholders are owners of the company.
  5. Debenture holders have the right to vote at the general meeting of the company.

Q2. Explain the following terms/concepts (any4) [8]                          

  1. Borrowed Capital
  2. Employees Stock Option Scheme
  3. Debenture
  4. Renewal of Deposit
  5. Dematerialization

Q3. Study the following case/situation and express your opinion (Any 2)                             [6]

  1. The Balance-sheet of a Donald Company for the year 2018-19 reveals equity share capital of Rs. 25, 00,000, and retained earnings of Rs. 50, 00,000.
  1. Is the company financially sound?
  2. Can the retained earnings be converted into capital?
  3. What type of source retained earnings is?

2. The management of ‘Maharashtra State Road Transport Corporation’, wants to determine the size of working capital.

  1. Being a public utility service provider, will it need less working capital or more?
  2. Being a public utility service provider, will it need more Fixed Capital?
  3. Give one example of public utility service that you come across on a day-to-day basis.

3. Eva Ltd. Company’s capital structure is made up of 1, 00,000 Equity shares having a face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in `.

  1. Authorised capital
  2. Subscribed capital
  3. Issued capital

Q4 Distinguish between (Any 3)                                                          [12]

  1. Fixed Capital and Working Capital.
  2. Transfer of Shares and Transmission of Shares
  3. Equity shares and Preference shares.
  4. Final Dividend and Interim Dividend

Q5. Answer in brief (Any 2)                                                                  [8]

  1. State any four factors affecting fixed capital requirements.
  2. What is Global Depository Receipt?
  3. State any four provisions of Companies Act 2013 for the issue of debentures.

Q6. Justify the following statement (Any 2)                                     [8]

  1. The firm has multiple choices of sources of financing.
  2. A company can issue a duplicate share certificate.
  3. Equity share capital is risk capital.
  4. Debenture trustees are appointed by a company issuing debentures.

Q7. Attempt the following (Letter Writing) (Any2)                      [10]

  1. Write a letter to the shareholder regarding the issue of Bonus Shares.
  2. Draft a letter of allotment to the debenture holder.
  3. Draft a letter of thanks to the depositor of a company.

Q8. Answer the following (Any 1)                                                        [8]

Define preference shares. What are the different types of preference shares?