Describe in brief the greatest difficulties faced in capital budgeting in the real world. ANSWER Difficulties faced in capital budgeting – Uncertainty of variables e.g annual cash flows, discounting rates, changes in technology, inflation rate, changes in tax rates etc. Open …
Author: admin
(i) What is a Commercial Paper? (ii) State and explain the advantages of using commercial paper by businesses to raise funds
(i) What is a Commercial Paper? (ii) State and explain the advantages of using commercial paper by businesses to raise funds ANSWER (c) (i) A commercial paper is unsecured short term financial instrument issued at a discount by financially stable Open …
(i) What is a stock exchange index? (ii) Outline four drawbacks of the Nairobi Stock Exchange index
(i) What is a stock exchange index? (ii) Outline four drawbacks of the Nairobi Stock Exchange index ANSWER (i) An index in general terms is a measure of relative change from one point in price to another. Stock indices measure Open …
Explain how the Capital Authority can ensure: (i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country (ii) Development of other stock exchanges in Kenya or in your country.
Explain how the Capital Authority can ensure: (i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country (ii) Development of other stock exchanges in Kenya or in your country. ANSWER i) 1. Establishes Rules Open …
What economic advantages are created by the existence of: (i) Primary markets (ii) Secondary markets (iii) Portfolio management firms
What economic advantages are created by the existence of: (i) Primary markets. (ii) Secondary markets (iii) Portfolio management firms. ANSWER i) Economic advantages are created by the existence of Primary Market • Raising Capital Business • mobilizing savings • Government Open …
Explain the classes of persons who may petition the court for the compulsory winding up of a company
Explain the classes of persons who may petition the court for the compulsory winding up of a company ANSWER Under the Companies Act a petition for the compulsory winding up of a company may be presented to the court by Open …
In a company with a share capital: i) What is the members right to appoint a proxy ii) What are the rights of the proxy so appointed?
In a company with a share capital: i) What is the members right to appoint a proxy ii) What are the rights of the proxy so appointed? ANSWER i) Members right to appoint a proxy • At common law a Open …
Outline the various matters that require to be sanctioned by members through a special resolution
Outline the various matters that require to be sanctioned by members through a special resolution ANSWER Various matters that require to be sanctioned by members through a special resolution • Voluntary change of name • Alteration of the objects clause Open …
State what is meant by underwriting commission and distinguish it from brokerage
State what is meant by underwriting commission and distinguish it from brokerage ANSWER Underwriting Commission This is the amount or sum paid by the company to a person who agrees to underwrite the company’s shares i.e. take up all the Open …
State the circumstances under which a company would be required to maintain an index of the register of members
State the circumstances under which a company would be required to maintain an index of the register of members ANSWER Under the provisions of the Companies Act every company with more than fifty members must have an index of the Open …