Business And Commerce - Study Mode

[#236] Which of the following companies may issue share warrants?
Correct Answer

(C) Public limited companies

Explanation

Solution: Public limited companies may issue share warrants. Warrants are sold by companies as a way to raise capital. Although a company could sell stock to raise money, the Securities and Exchange Commission regulates the number of shares a company is allowed to issue. Some companies will issue warrants as a way to sweeten a deal during a takeover or restructuring.

[#237] A bearer of a share warrant of a company is _____.
Correct Answer

(D) not a member of the company

Explanation

Solution: A bearer of a share warrant of a company is not a member of the company. But if the articles of association of the company provide it, then the bearer is deemed to be the member of the company.

[#238] Bank overdraft is a good source of finance for _________.
Correct Answer

(A) Short term

Explanation

Solution: Bank overdraft is a good source of finance for Short term. An overdraft facility allows the business to spend more money than is deposited in the bank account. The amount of the overdraft will rise and fall as funds are deposited and spent from the account.

[#239] The most important economic function of new issue market is to ___________.
Correct Answer

(B) provide facilities for converting saving into investments

Explanation

Solution: The most important economic function of new issue market is to provide facilities for converting saving into investments.

[#240] What is the situation referred to as, amongst the following, when intra-region trade is duty free but there is variation in tariff structure for import from a third country?
Correct Answer

(C) Free Trade Area