mcq on sweat equity shares

If a company violates the Section 33 of Companies Act related to Abridged Prospectus, then it shall be punishable with fine of _________? However, for the purpose of section 54 of the 2013 Act and the related rules, Rule 8 of the Companies (Share capital and Debentures) Rules, 2014 defines “employee” so as to mean: Financial Management MCQs (Multiple Choice Questions and Answers) Also Useful for NT…, 1. Answer: (3) We provide complete coaching for Commerece and Arts stream from Class 12 to Master Degree level. SH.3 and will forthwith enter the particulars of the Sweat Equity Shares issued under section 54. A new company set up by existing companies with five year track record can issue share at premium provided: 35. Which among the following is type of share issued to existing shareholders without receipt of any consideration from shareholders for issuance of such shares? Amount to be transferred to share forfeiture A/c= 7,200(800 x 9) – 2,400(800 x 3)= Rs. Preference share experience the perquisites of the dividend distribution first. However, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings. Answer: (1) Disadvantage of Sweat Issue: As sweat equity shares are issued at concessional rates, the com­pany loses financially. Q5. As per Section 2(88) of the Companies Act, 2013, Sweat Equity Shares are the shares issued by the company to its Director or employee at a discount or for consideration other than cash, for providing know-how or making available like intellectual property rights or value addition.. Who are eligible for Sweat equity Shares? Dynamic Tutorials and Services is a Leading Coaching Centre of Tinsukia District. If the business is a limited company or partnership, the person who performed the equity in effects gets an ownership percentage in the company. In this video we will learn about the meaning and provisions regarding issue of Sweat Equity Shares under Companies Act 2013. A company grants ESOPs to its employees for buying a specified number of shares of the company at a defined price after the option period (a certain number of years), Click to go to SEBI Grade A Preparation Page, Tags: Companies Act MCQ Part 4, Companies Act MCQ Part 4 Quiz, September – 2020 Edition Dear aspirants, Answer: (4) As per Section 52 of the companies act, amount collected as premium on securities cannot be utilised for: 34. If the person who performed the sweat equity delivered work worth $30,000, the person should be paid 2,000 shares of stock. We are presenting you the Companies Act MCQ Part 4 for SEBI Grade A Companies Act Section of the exam. To pay the individuals who contributed the sweat equity, the share price or unit value of the company is multiplied by the monetary amount for the labor performed to get the sweat equity value for that person. SECTION 54. If you want a shareholder to hold shares then an existing shareholder can transfer some of his or her shares or new shares could be allotted. Q2. Permission from central government to issue share capital is required if Nominal capital exceeds Rs. 18. ‘Sweat equity shares’ are such equity shares, which are issued by a Company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. Quantum of Sweat Equity Shares: The value of shares issued should not be more than 15% of paid up capital of the company in a year or Rs. Bonus shares are issued to the shareholders without any additional cost. Answer: (2) Answer: (1) Answer: (2) A rights issue is a way by which a listed company can raise additional capital. What is the lock-in period of Sweat Equity Shares? The minimum amount payable on application on every security shall not be less than _____ per cent. Stocks and Shares MCQ Question with Answer Stocks and Shares MCQ with detailed explanation for interview, entrance and competitive exams. [Public] [Private] [Employee] [All of above] 8 people answered this MCQ question is the answer among Public,Private,Employee,All of above for the mcq Sweat equity shares are issued to MCQ OF ISSUE OF SHARES accountancy class12 by. Match the following: Maximum number of members in: 5. Sweat equity is a form of income. Issue of share at a discount must be authorised by a resolution passed by the company in general meeting and duly sanctioned by the central government. June – 2020 Edition Rule 8 of Companies (Share Capital and Debenture) Rules, 2014 provides that a company shall not issue sweat equity shares for more than 15% of the existing paid-up equity share capital or shares of the value of 5 crores, whichever is higher and it cannot exceed 25% of the paid-up equity capital of … Sweat Equity is a new equity instrument which was floated in the Companies (Amendment) ordinance 1998 (u/s 79A of the companies act 1956. It refers to the shares issued at discount to the employees and directors and shares issued for consideration other that cash for providing intellectual property rights, know how , value additions to the company or similar contributions. Sweat Equity Shares (B) Private Equity Shares (D) Bonus Equity Shares (iv) Issue and Allotment of Shares. August – 2020 Edition QUESTION: 13. Sweat Equity Shares, Explanation: As per the Companies Act, 2013, A company cannot issue its shares at discount except sweat equity shares. What are Sweat Equity Shares? 4,800 Amount to be transferred to Capital Reserve A/c= 9,600(12 x 800) – 4,800(Amount of share forfeiture)= Rs. 5 crore; whichever is less. For example, Bob receives $100 dollars in sweat equity from ABC Corp. Bob is required to pay taxes on the value of sweat equity received ($100 dollars) as earned income. Q3. 2. Match the following: Minimum number of members in. b. 4,800 Q7. Even so, the issuance of such shares cannot exceed 25% of the paid-up capital of the company at any time. For example, If you're paying the person who did the work 10,000 shares at $5 per share, but your par value is $1 per share, then the value of the sweat equity beyond the par value is $50,000 (10,000 shares x $5 per share) - $10,000 (10,000 shares x $1 per share) or $40,000. Which of the following are the characteristics of a company? Thus, sweat equity shares denote stocks that companies issue to reward such contributions. Disbursement of sweat equity: In a year, the sweat equity shares cannot account for more than 15% of the existing paid up equity share capital or shares having issue value of rupees 5 crores, whichever is higher. The financial exposure to the company is more in cases of sweat equity. (a) Question: Rate of brokerage for the deposits which have term between 1-2 years (a) 1.5% (b) 2% (c) 1% (d) None of […] MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. New shares dilute the interests of all shareholders. Which of the following statement is false? Financial Management MCQs | For B.Com and M.Com | NTA NET EXAM (Commerce 08), MCQ on Accounts of Holding Companies (Revised), For June 2013 ICWAI Stage I Examination: Fast track notes on Income under the head House Property. Body corporate does not include Co- operative society. The term ‘director’ has been defined under section 2(34) of the 2013 Act. Answer: (4) We have compiled NCERT MCQ Questions for Class 11 Business Studies Chapter 3 Private, Public and Global Enterprises with Answers Pdf free download. 1 crore. The Company shall not issue Sweat Equity Shares for more than 15% of existing paid-up share capital or issue value of shares Rs.5,00,00,000/- (Rupees Five Crores), whichever is higher. Answer: (2) Objective Questions on Company Law with Answers: Question: A company to issue sweat equity shares must pass a. In which of the following cases a company can use Capital Redemption Reserve? May – 2020 Edition April – 2020 Edition But sweat equity once paid can’t lapse. QUANTUM OF SWEAT EQUITY SHARE. A company is said to be Deemed Public Company as per Companies Act, 2013: Deemed Company would mean a company which is subsidiary of a public company. If a company violates the provisions of Section 33 of Companies Act 2013, it shall be punishable with a fine of fifty thousand rupees for each default. A company may issue preference shares for a period exceeding twenty years for infrastructure projects. MCQ - Issue of Shares and Share Capital | Multiple Choice Questions and Answers | Company Accounts | Corprorate Accounts | CMA MCQ by. About Kumar Nirmal Prasad Kumar Nirmal Prasad is the founder and CEO of Dynamic tutorials and Services. 13. The company shall not issue sweat equity shares for more than fifteen percent of the existing paid up equity share capital in a year or shares of the issue value of rupees five crores, whichever is higher. 7. of the nominal amount of the security, Answer: (1) vaibhav chauhan on. 8. Sweat equity is contribution to a project or enterprise in the form of effort and toil. Moreover, a Sweat Equity Share Contract is necessary to prevent conflicts, especially for businesses with many partners. March – 2020 Edition It does not matter if such companies are private by its articles. A company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue. Students can solve NCERT Class 12 Accountancy Issue of Shares MCQs Pdf with Answers to know their preparation level. Equity share is an ordinary share. 36. Which law defines Sweat Equity Shares? Kumar Nirmal Prasad on. Sweat Equity Shares are issue to _____? Get all latest content delivered straight to your inbox. Securities premium account is shown on the liabilities side of the balance sheet under the head: 19. As per Companies Act 2013, what is maximum tenure of preference shares except for infrastructure projects? Equity share and Preference share are the two types of share that a company issues. Which of the following capital is not shown in company’s balance sheet? The amount payable on application on every security shall not be less than five per cent. A company may issue sweat equity shares to directors or employees. An ESOP (Employee stock ownership plan) refers to an employee benefit plan which offers employees an ownership interest in the organization. 16. 5%; 10%; 15%; 20%; Answer: (3) The Company shall not issue Sweat Equity Shares for more than 15% of existing paid-up share capital or issue value of shares Rs.5,00,00,000/- (Rupees Five Crores), whichever is higher. Download was Prepared Based on Latest Exam Pattern not shown in company ’ s balance sheet under the Act! Except for infrastructure projects by existing Companies with five year track record can issue at... Mcq by premium on securities can not issue its shares at discount except sweat equity.. Beyond the par value of the sweat equity shares part 4 for SEBI Grade a Companies mcq. This video we will learn about the meaning and provisions regarding issue of shares MCQs PDF with Answers were according. 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