Question 1

XYZ Ltd. is a manufacturer of coffee. The company planned to expand and was planning to buy a land in Karnataka. The chief financial officer suggested to offer the shares to a limited number of sophisticated investors. Out of the following, identify the method of raising the funds being suggested by the CFO.

Accepted Answer

(D) Private placement

Question 2

______ is an affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.

Accepted Answer

(C) Angel Investor

Question 3

Identify the place where transaction happens in shares or debentures subsequent to its primary offering:

Accepted Answer

(B) Secondary Market

Question 4

ABC Ltd. decided to raise funds by issuing shares. The finance department felt that the company should offer the shares to existing shareholders on a pro-rata basis. Out of the following, identify the method of raising the funds being suggested by the finance department.

Accepted Answer

(B) Right Issue

Question 5

Assertion (A): The Angel Investors were given the acronym FFF i.e. FRIENDS, FAMILY, AND FOOLS. Reason (R): Angel investors are high net-worth individuals who have the knowledge, expertise, and funds that help start-ups without due diligence.

Accepted Answer

(C) Assertion (A) is true but Reason (R) is false

Resource Mobilization

Study Simplify Special