nismmocktest.in

Question 1 reset

Debt capital has fixed maturity.

True

False

Question 2 reset

For the investor, Equity capital gives returns from

Dividends

Capital Appreciation

Both the above

Question 3 reset

The denomination in which equity capital is issued is called

Face

Par Value

Both the above

Question 4 reset

The interest that a company will have to pay on the debt raised will depend upon its Default Risk.

True

False

Question 5 reset

Equity capital is for perpetuity from the point of view of the company.

True

False

Question 6 reset

Companies prefer equity capital because it is less expensive

True

False

Question 7 reset

Debt capital is always raised for short‐term periods

True

False

Question 8 reset

Debt instruments are listed and traded on the

primary markets

secondary markets

Question 9 reset

The paid‐up capital of a company can be higher than its issued capital.

False

True

Question 10 reset

The Authorised capital of the company can be raised if the company wants to increase the capital once it is fixed.

True

False

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