For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. A. 51% B. 90% C. 99% D. 100%

For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company.
A. 51%
B. 90%
C. 99%
D. 100%
by

1 Answer

Answer :

B. 90%
by

Related questions

Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to be carried on by the transferee company. C. Purchase consideration must be paid in equity shares by the transferee company except for fraction shares. D. All of the above

Description : Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to ... paid in equity shares by the transferee company except for fraction shares. D. All of the above

Last Answer : D. All of the above

AS – 14 is not applicable if when Transferee Company acquires Transferor Company and Transferor Company: A. Ceases to exist B. Separate entity is Continue to exist C. Applied in all cases D. None of the above

Description : AS – 14 is not applicable if when Transferee Company acquires Transferor Company and Transferor Company: A. Ceases to exist B. Separate entity is Continue to exist C. Applied in all cases D. None of the above

Last Answer : B. Separate entity is Continue to exist

Amalgamate adjustment account is opened in the books of transferee company to incorporate: A. The assets of the transferor company B. The liabilities of the transferor company C. The statutory reserves of the transferor company D. The non – statutory reserves of the transferor company

Description : Amalgamate adjustment account is opened in the books of transferee company to incorporate: A. The assets of the transferor company B. The liabilities of the transferor company C. The statutory reserves of the transferor company D. The non – statutory reserves of the transferor company

Last Answer : C. The statutory reserves of the transferor company

The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Last Answer : (A) Preference shareholders Account

Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : C. Goodwill or capital reserve

Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : A. General reserve

Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Description : Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Last Answer : B. Amortised to income on a systematic basis normally five years

The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

Merger of two or more companies or business undertaking to form new company mean A. Reconstruction B. Amalgamation C. Absorption D. Commandment of Company

Description : Merger of two or more companies or business undertaking to form new company mean A. Reconstruction B. Amalgamation C. Absorption D. Commandment of Company

Last Answer : B. Amalgamation

If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method

Description : If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method

Last Answer : (B)Form of purchase

The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account

Description : The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account

Last Answer : D. Equity shareholders' account

When a company taken over another one and clearly becomes the new owner, the action is called A. Merger B. Acquisition C. Strategic Alliance D. None of the above

Description : When a company taken over another one and clearly becomes the new owner, the action is called A. Merger B. Acquisition C. Strategic Alliance D. None of the above

Last Answer : B. Acquisition

In the calculation of return on shareholders investments the referred investment deals with A. All reserves B. Preference and equity capital only C. All appropriations D. All of the above

Description : In the calculation of return on shareholders investments the referred investment deals with A. All reserves B. Preference and equity capital only C. All appropriations D. All of the above

Last Answer : D. All of the above

The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Last Answer : (A) Preference shareholders Account

Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

Description : Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

Last Answer : B. Equity shares

The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares

Description : The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares

Last Answer : B. Preference Shares

When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction

Description : When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction

Last Answer : (A)Amalgamation

Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation

Description : X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation

Last Answer : A. Absorption

X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. commencement.

Description : X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. commencement.

Last Answer : B. External reconstruction

A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of A. Absorption B. External reconstruction C. Amalgamation. D. commencement

Description : A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of A. Absorption B. External reconstruction C. Amalgamation. D. commencement

Last Answer : C. Amalgamation.

When company purchases the business of another company ........ comes into existence. (A)Amalgamation (B)Absorption (C)External Reconstruction (D)Internal Reconstruction

Description : When company purchases the business of another company ........ comes into existence. (A)Amalgamation (B)Absorption (C)External Reconstruction (D)Internal Reconstruction

Last Answer : (B)Absorption

In amalgamation of two companies (A)Both companies lose their existence (B)Both companies continue (C)Any one company continues (D)None of the above

Description : In amalgamation of two companies (A)Both companies lose their existence (B)Both companies continue (C)Any one company continues (D)None of the above

Last Answer : (A)Both companies lose their existence

In case of .............., one existing company takes over the business of another company and no new company is formed. (A)Amalgamation (B)Absorption (C)Reconstruction (D) None of the Above

Description : In case of .............., one existing company takes over the business of another company and no new company is formed. (A)Amalgamation (B)Absorption (C)Reconstruction (D) None of the Above

Last Answer : B)Absorption

When one of the existing companies take over business of another company or companies, it is known as ........... (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction

Description : When one of the existing companies take over business of another company or companies, it is known as ........... (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction

Last Answer : (B)Absorption

What is the share of Government of India in NABARD? A. 50% B. 51% C. 75% D. 99%

Description : What is the share of Government of India in NABARD? A. 50% B. 51% C. 75% D. 99%

Last Answer : D. 99%

________ means making a smaller business, part of a larger one, so that the smaller company in effect no longer exists. 1. Merger 2. Amalgamation 3. Absorption 4. Invention 5. None of these

Description : ________ means making a smaller business, part of a larger one, so that the smaller company in effect no longer exists. 1. Merger 2. Amalgamation 3. Absorption 4. Invention 5. None of these

Last Answer : Absorption

Narendra Modi has approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank.Which will be the transferee bank?

Description : Narendra Modi has approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank.Which will be the transferee bank?

Last Answer : Bank of Baroda

A situation where two companies hold shares in each other is called ? 1. equity holding 2. swapping 3. reciprocal holding 4. cross holding 5. None of these

Description : A situation where two companies hold shares in each other is called ? 1. equity holding 2. swapping 3. reciprocal holding 4. cross holding 5. None of these

Last Answer : cross holding

Which one of the following law controlled over merger, Amalgamations, takeovers etc.? A. IRDA B. NASDOC C. M.R.T.P. D. D.R.

Description : Which one of the following law controlled over merger, Amalgamations, takeovers etc.? A. IRDA B. NASDOC C. M.R.T.P. D. D.R.

Last Answer : B. NASDOC

Which can be a method of privatisation ? i. Disinvestment ii. Denationalisation iii. Purchasing Share iv. Takeover v. Merger

Description : Which can be a method of privatisation ? i. Disinvestment ii. Denationalisation iii. Purchasing Share iv. Takeover v. Merger

Last Answer : i. Disinvestment

A newly established company cannot be successful in obtaining finance by way of A. issue of equity capital B. issue of preference share C. issue of debenture D. None of the above

Description : A newly established company cannot be successful in obtaining finance by way of A. issue of equity capital B. issue of preference share C. issue of debenture D. None of the above

Last Answer : C. issue of debenture

Company images and brand equity is factor affecting business A. Externally B. Internally C. Government Policy D. None of these

Description : Company images and brand equity is factor affecting business A. Externally B. Internally C. Government Policy D. None of these

Last Answer : A. Externally

Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation

Description : Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation

Last Answer : (D) Amalgamation

The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Last Answer : (D)Miscellaneous expenditure

A merger is also called as ______________ 1. an amalgamation 2. a consortium 3. a joint venture 4. an acquisition 5. None of these

Description : A merger is also called as ______________ 1. an amalgamation 2. a consortium 3. a joint venture 4. an acquisition 5. None of these

Last Answer : an amalgamation

The importance of ‘Trading on Equity’ lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so, it can increase the income of: a. Preference Shareholders b. Lenders c. Equity Shareholders d. Government

Description : The importance of ‘Trading on Equity’ lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so, it can increase the income of: a. Preference Shareholders b. Lenders c. Equity Shareholders d. Government

Last Answer : c. Equity Shareholders

Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Last Answer : D. Out of free reserves built out of genuine profit

The shares received from the new company is recorded at (A) Face value (B) Market value (C) Average price (D) None of these

Description : The shares received from the new company is recorded at (A) Face value (B) Market value (C) Average price (D) None of these

Last Answer : (B) Market value

Which of the following statement is correct? (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only (B)The amount of Goodwill or Capital Reserve is found out in the books of vendor company only. (C)Goodwill = Net Assets –Purchase price (D)The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

Description : Which of the following statement is correct? (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only (B)The amount of Goodwill or ... face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

Last Answer : (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

Shares received from the new company are recorded at - (A)Face value (B)Average price (C)Market value (D)None of the above

Description : Shares received from the new company are recorded at - (A)Face value (B)Average price (C)Market value (D)None of the above

Last Answer : (C)Market value

fter getting minimum subscription of shares, the company has to allot shares with in--------- ------days. A. 90 B. 100 C. 110 D. 120

Description : fter getting minimum subscription of shares, the company has to allot shares with in--------- ------days. A. 90 B. 100 C. 110 D. 120

Last Answer : D. 120

As per AS – 14 purchase consideration is what is payable to A. Shareholders B. Creditors C. Debentureholders D. Shareholders and Debentureholders

Description : As per AS – 14 purchase consideration is what is payable to A. Shareholders B. Creditors C. Debentureholders D. Shareholders and Debentureholders

Last Answer : A. Shareholders

After declaration dividends are paid to the shareholders as per the provision of A. Indian Companies Act B. RBI Act C. SEBI Act D. Indian Contract Act

Description : After declaration dividends are paid to the shareholders as per the provision of A. Indian Companies Act B. RBI Act C. SEBI Act D. Indian Contract Act

Last Answer : C. SEBI Act

Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the return to shareholders. c. Setting accounts payable and accounts receivable policies. d. Driving the financial structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Description : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Last Answer : e. Deciding promo and sales budget

Dividend Distribution Tax is payable by: A. Shareholders to Government B. Shareholders to Company C. Company to Government D. Holding to Subsidiary

Description : Dividend Distribution Tax is payable by: A. Shareholders to Government B. Shareholders to Company C. Company to Government D. Holding to Subsidiary

Last Answer : C. Company to Government

The following proportion of the total body calcium is present in bones and teeth: (A) 75% (B) 90% (C) 95% (D) 99%

Description : The following proportion of the total body calcium is present in bones and teeth: (A) 75% (B) 90% (C) 95% (D) 99%

Last Answer : Answer : D

Plant lost water in transpiration upto the extent of (a) 80%(b) 90% (c) 95% (d) 99%

Description : Plant lost water in transpiration upto the extent of (a) 80%(b) 90% (c) 95% (d) 99%

Last Answer : (d) 99%

What percentage of cyclohexane molecule is estimated to be in the boat form at any given time?(a) over 99% (b) between 90% and 99% (c) approximately 50% (d) less than 1%

Description : What percentage of cyclohexane molecule is estimated to be in the boat form at any given time? (a) over 99% (b) between 90% and 99% (c) approximately 50% (d) less than 1%

Last Answer : less than 1%