Research Analyst Certification Free Demo Test 10 /10 Research Analyst Certification Free Demo Test 10 1 / 10 1. Corporate profits, computed after deducting business expenses and other specified items, are taxed at the _______ rate for Indian companies. a. 0.2 b. 0.3 c. 0.4 d. 0.5 Explanation:Corporate profits in India are taxed at the rate of 0.3 after deducting business expenses and specified items, as marked correct. 2 / 10 2. Delisting of shares refers to the ________ removal of the shares of a company from being listed on a stock exchange. a. Permanent b. Temporary c. Voluntary d. None of the above Explanation:Delisting, marked as permanent, means the removal of a company’s shares from a stock exchange, typically ending public trading of those shares. 3 / 10 3. A company cannot make bonus issue if it has defaulted on: a. Any fixed deposit raised b. Principal on any debt security issued c. Payment of interest d. All of the above Explanation:The correct answer, “All of the above,” explains that a company cannot issue bonus shares if it has defaulted on various financial obligations, ensuring financial stability. 4 / 10 4. If an investor holds 100 shares of a company with a face value of Rs. 10 each, a stock split in the ratio of 1:2 will increase the number of shares held by him to __________. a. 500; go down to Rs. 5 b. 500; go down to Rs. 2 c. 200; go down to Rs. 5 d. 200; go down to Rs. 2 Explanation:In a 1:2 stock split, the correct explanation is that an investor holding 100 shares would see the number increase to 200, with the face value per share reduced to Rs. 5. 5 / 10 5. In what type of action the acquiring company acquires all or a substantial portion of the stock of the target company and both entities typically continue to exist? a. Merger b. Consolidation c. Acquisition d. All of the above Explanation:Acquiring all or a substantial portion of the target company’s stock while both entities continue to exist defines an acquisition, as marked correct. 6 / 10 6. A company can buy back its shares out of: a. Securities premium account b. Reserves which are availablefor distribution as dividend c. Proceeds of fresh issue of shares or other specified securities d. All of the above Explanation:A company can buy back its shares from various sources, including the securities premium account, reserves available for distribution as dividends, and proceeds from fresh share issues. 7 / 10 7. During a slowdown in economies, unemployment rate _______ . a. Rises b. Falls c. There is no effect on unemployment rate d. None of the above Explanation:When an economy is going through tough times, less jobs are created and so the unemployment rate rises. 8 / 10 8. Focus of microeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc. State whether True or False. a. True b. False Explanation:Microeconomics focuses on individual households and firms. Macroeconomics deals with the economy as a whole. In other words, the focus of macroeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc. 9 / 10 9. ____________ has the right to buy an asset at a predetermined price. a. Call Buyer b. Put Buyer c. Call Writer d. Put Writer Explanation:In Options, the buyers have the RIGHT but no obligations. A CALL BUYER has the right to buy an asset at a predetermined price A PUT BUYER has the right to sell an asset at a predetermined price. 10 / 10 10. The EBIT of a company is Rs 400000 and the EBIT % is 40% of the business. What is the Net Profit of the company if the Net Profit margin is 10%. a. Rs 10,000 b. Rs 1,00,000 c. Rs 40,000 d. Rs 16,000 Explanation:The EBIT is Rs 400000 which is 40% of the business ie. sales. So Sales = Rs 10,00,000 (4,00,000 / 40 x 100) Net Profit margin is 10% ie 10% of Rs 10,00,000 = Rs 1,00,000 Your score is 0% Restart quiz Exit