ACQUISITION & INTERNAL RECONSTRUCTION
Growth, expansion are all time target of business. A good management always try to enhance as well as wealth of their investors. Sometime when there are sufficient funds with the organization then it can opt for expansion. Instead of settling all things at its own, organization can also go with acquisition. It the concept in which organization acquires a settled business for a agreed consideration. This process only requires due diligence of the organization to judge the feasibility of the transaction.
While at a time there may be situation where organization need to inject more capital to meet current demand(under capitalization) of supply, pay off its debt etc or organization can suffer from over capitalization(more capital than requirement) which may result in dilution of ownership, unnecessary capital cost. Internal reconstruction is the tool which can help to throw out these problems. Organisation can opt for the suitable plan according to requirement of the situation.
Here is a quiz on acquisition and internal reconstruction to test your knowledge!
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- Question 1 of 10
1. Question1 points
Which of the following is not an component of financial system?Correct
Taxation department is not a part of financial sytem.Incorrect
- Question 2 of 10
2. Question1 points
Which of the following instruments is used by public to directly lend to the Government?Correct
PPF is the instrument which is used by public to directly lend to the Government.Incorrect
- Question 3 of 10
3. Question1 points
Which of the following means buying the control of a sick company.Correct
Buying control of sick company is known as turn arroundIncorrect
- Question 4 of 10
4. Question1 points
Inter-bank call money refers to borrowing among banks forCorrect
Inter-bank call money refers to borrowing among banks for overnight.Incorrect
- Question 5 of 10
5. Question1 points
A scheduled commercial bank is oneCorrect
A scheduled commercial bank is one which is included in the Second Schedule of the RBI Act,1934.Incorrect
- Question 6 of 10
6. Question1 points
Hedging of risks by usingCorrect
Swaps are derivatives are used for hedging of risks.Incorrect
- Question 7 of 10
7. Question1 points
What is the CRR currently prescribed by RBI ?Correct
Current CRR is 4%.Incorrect
- Question 8 of 10
8. Question1 points
Commercial Bills market is a part ofCorrect
Commercial Bills market is a part of organisewd money market.Incorrect
- Question 9 of 10
9. Question1 points
Which of the following is not a traditional financial services?Correct
Apart from all, option one is considered as modern financial services.Incorrect
- Question 10 of 10
10. Question1 points
Which of the followingÂ is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables?Correct
Factoring is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables.Incorrect