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Commerce

Which of the following statements is not true with regard to the primary market? (a) It is also known as the old issues market. (b) It deals with new securities being issued for the first time. (c) It facilitates the transfer of investible funds from savers to entrepreneurs. (d) It facilitates the transfer of investible funds from savers to entrepreneurs.

Answer   (a) It is also known as the old issues market. Explanation:  The primary market is the place where securities are made, while the secondary market is the place where those securi…

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A company must adhere to the provisions of the Companies Act while taking the dividend decision. Identify the related factor of the dividend decision being mentioned in the above line. (a) Access to capital market (b) Legal constraints (c) Preferences of shareholders (d) Contractual constraints

Answer  (b) Legal constraints Explanation:  A company is denied to distribute as money, dividends of a partnership’s legal capital. This lawful capital is normally estimated by the par va…

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Which of the following statements is not true with regard to call money? (a) Its maturity period ranges from one day to fifteen days. (b) It is used for inter-bank transactions. (c) There is a direct relationship between call rates and other short-term money market instruments. (d) It is short-term finance repayable on demand.

Answer  (c) There is a direct relationship between call rates and other short-term money market instruments. Explanation:  Call money is any sort of short-term, interest acquiring monetar…

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Which of the following statements is not true with regard to Commercial paper? (a) It is a long-term unsecured promissory note with a fixed maturity period. (b) It is sold at a discount and redeemed at par. (c) Companies use this instrument for bridge financing. (d) It usually has a maturity period of 15 days to one year.

Answer  (a) It is a long-term unsecured promissory note with a fixed maturity period. Explanation:  Commercial Paper is a money market instrument that is unsecured. The issue of commercia…

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What is the scope of business?

The scope of business or the extent of business is more extensive than the terms ‘Commerce’ and ‘Trade’. Trade is one of the parts of the business. It involves the trading of services and…

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What is the consumer protection council in India?

The National Consumer Disputes Redressal Commission (NCDRC), India, is a semi-legal commission in India that was set up in 1988 under the Consumer Protection Act of 1986. Its administrati…

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What is the scope of business?

The scope of business or the extent of business is more extensive than the terms ‘Commerce’ and ‘Trade’. Trade is one of the parts of the business. It involves the trading of services and…

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