Redemption of Preference Shares

1. Preference shares can be redeemed:
   (a) Only if they are fully paid
   (b) Even if they are partly paid up
   (c) After getting the permission from the court only
   (d) All of the above
2. A Preference shares which carry the right participating in the surplus left after paying equity dividend is called:
   (a) Convertible preference shares
   (b) Cumulative preference shares
   (c) Participating preference shares
   (d) All of the above
3. Redeemable preference shares must be redeemed within:
   (a) 5 years
   (b) 10 years
   (c) 15 years
   (d) 20 years
4. Preference shares can be issued for a maximization period of:
   (a) 20 years
   (b) 24 years
   (c) 25 years
   (d) None of these.
5. Which of the following statement is true.
   (a) Only fully paid up preference shares can be redeemable
   (b) Partly paid up preference share can be redeemable by company
   (c) A company can issue preference shares share with voting rights
   (d) A company cannot redeem its preference shares at a premium
6. Capital Redemption Reserve Account is available for :
   (a) Redemption of redeamable preference shares
   (b) Redemption of redeemable debentures
   (c) Reorganisation of share capital
   (d) Issue of bonus shares
7. If preference shares are redeemed at premium, then such premium may be provided out of :
   (a) Securities Premium Account
   (b) Proceeds of fresh issue of shares
   (c) Share Forfeiture Account
   (d) Capital Redemption Reserve Account
8. In case of redemption of preference shares out of distributable profits, and amount equal to the nominal value of preferences shares redeemed must be transferred to the
   (a) Development rebate reserve
   (b) Investment allowance reserve
   (c) Capital redemption reserve
   (d) Premium on redemption of preference shares
9. Which of the following cannot be utilized for the redemption of preference-shares of a company?
   (a) Proceeds of fresh issue of shares
   (b) General Reserve
   (c) Dividend equalization reserve
   (d) Securities premium on fresh issue of shares
10. Which type of the following shares has the right to receive dividends unpaid in prior years, whenever earning becomes adequate?
    (a) Cumulative preference shares
    (b) Participating preference shares
    (c) Convertible preference shares
    (d) Callable preference shares
11. Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not less than
    (a) 2 year
    (b) 3 years
    (c) 6 years
    (d) none of these
12. Which of the following statement is True.
    (a) Only fully paid up preference shares can be redeemable only at par
    (b) Partly paid up preference share can be redeemable by company
    (c) Preference share holder are called owner of residue
    (d) Preference share may be cumulative or non-cumulative
13. Debenture are issued for the purpose of redemption of preference shares it means
    (a) Preference Shares  are redeemed out of Capital
    (b) Preference Shares are redeemed out of Profit
    (c) No redemption of Preference Shares
    (d) Non of the above