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Government company can collect deposits from its members.

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Question

Government company can collect deposits from its members.

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is False.

Explanation:

Government Company can accept deposits from public not exceeding 35% of the paid up share capital and free reserves of the company.

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Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 90]

RELATED QUESTIONS

Answer in one sentence.
When does a company create charge on it’s tangible assets?


Answer in one sentence.
What is Deposit Repayment Reserve Account?


Select the correct answer from the options given below and rewrite the statement:
For premature repayment of deposit, company deducts __________ % of interest.


Return of deposit must be filed every year on or before ______.


Write a word or a term or a phrase which can substitute the following statement.
A company which can accept deposits from its members, directors, or their relatives not exceeding 100% of aggregate of paid up share capital and free reserves.


Write a word or a term or a phrase which can substitute the following statement.
Minimum tenure of a deposit.


Write a word or a term or a phrase which can substitute the following statement.
Document issued by a company to invite its members to subscribe for its Deposits.


Write a word or a term or a phrase which can substitute the following statement.
Book which contains details of deposits accepted or renewed.


State whether the following statement is true or false.

Eligible public company can collect deposits from public not exceeding 35% of its paidup share capital and free reserves.


Select the correct option from the bracket.

Group 'A'

Group 'B'

a) Government Company

1) ___________________

b) ___________________

2) Deposits from members

c) 36 months

3) ___________________

d) ___________________

4) Charge on tangible assets

e) Return of deposit

5)   __________________

(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)


Correct the underlined word and rewrite the following sentence.
Minimum tenure of deposit is 36 months.


Arrange in proper order.
a. Obtain Credit Rating.
b. Entries in Register of Deposits.
c. Issue Deposit Receipt.


Explain the following term/concept.
Tenure of Deposit


Explain the following term/concept.
Charge on tangible assets


Explain the following term/concept.
Deposit Insurance


Explain the following term/concept.

Deposit Repayment Reserve Account.


Justify the following statement.

Companies have to create a charge on their tangible assets while issuing secured deposits.


Select the correct option from the bracket.

Group ‘A’ Group ‘B’
a) Retained earnings 1 ______
b)  ______ 2 Written communication
c) 36 months 3 ______
d) ______ 4 Charge on assets
e) Cash sales 5 ______

(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)


Arrange in Proper Order:

(a) Payment of Deposits

(b) Deposit Receipt

(c) Acceptance of Deposit


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