Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 10 of 18

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Q91.
When did ICICI Venture Capital, the first Venture Capital Institution in India, come into existence?

a.

1970

b.

1988

c.

1996

d.

2000

Discuss
Answer: (b).1988 Explanation:ICICI Venture Capital, the first Venture Capital Institution in India, was formed in 1988.
Q92.
What is one of the basic features of venture capital?

a.

Guaranteed low-risk investments

b.

Long-term investment horizon of 20 years or more

c.

High degree of risk in anticipation of high return

d.

Fixed return with no risk involved

Discuss
Answer: (c).High degree of risk in anticipation of high return Explanation:Venture capitalists are supposed to assume and accept a high degree of risk in anticipation of high return.
Q93.
What is the typical time frame within which venture capitalists generally try to liquidate their investments in a new project or firm?

a.

2-3 years

b.

5-7 years

c.

10-15 years

d.

20 years or more

Discuss
Answer: (b).5-7 years Explanation:Venture capitalists generally try to liquidate their investments in the new project or firm after 5-7 years.
Q94.
Which regulation aims at regulating, controlling, and directing the development of venture capital funds in India?

a.

RBI (Venture Capital Funds) Regulation, 1990

b.

SEBI (Venture Capital Funds) Regulation, 1996

c.

IRDAI (Venture Capital Funds) Regulation, 2000

d.

Ministry of Finance (Venture Capital Funds) Guideline, 2005

Discuss
Answer: (b).SEBI (Venture Capital Funds) Regulation, 1996 Explanation:The relevant regulation for regulating venture capital funds in India is SEBI (Venture Capital Funds) Regulation, 1996.
Q95.
According to the regulations, what is the definition of a "venture capital fund"?

a.

A fund with unlimited capital

b.

A fund established as a trust only

c.

A fund established as a company only

d.

A fund with a dedicated pool of capital, raised in a specified manner, and investing in venture undertakings

Discuss
Answer: (d).A fund with a dedicated pool of capital, raised in a specified manner, and investing in venture undertakings Explanation:A venture capital fund as a fund with a dedicated pool of capital, raised in a specified manner, and investing in venture undertakings.
Q96.
How does the regulation define a "venture capital undertaking"?

a.

Any company listed on a recognized stock exchange in India

b.

Any foreign company engaged in manufacturing

c.

Any domestic company listed on a recognized stock exchange in India

d.

Any domestic company not listed on a recognized stock exchange in India, engaged in specified business activities

Discuss
Answer: (d).Any domestic company not listed on a recognized stock exchange in India, engaged in specified business activities Explanation:According to the regulation, a venture capital undertaking is a domestic company not listed on a recognized stock exchange in India, engaged in specified business activities.
Q97.
What condition must be fulfilled by a company applying for registration as a venture capital fund?

a.

Its Memorandum of Association must prohibit any investment in securities.

b.

It must not have a dedicated pool of capital.

c.

Its director or principal officer must be involved in litigation connected with the Securities Market.

d.

Its Memorandum of Association must have as its main objective the carrying on the activity of a venture capital fund.

Discuss
Answer: (d).Its Memorandum of Association must have as its main objective the carrying on the activity of a venture capital fund. Explanation:For a company applying for registration as a venture capital fund, its Memorandum of Association must have as its main objective the carrying on the activity of a venture capital fund.
Q98.
What condition must be fulfilled by a trust applying for registration as a venture capital fund?

a.

The trust must not be involved in any litigation connected with the Securities Market.

b.

The trust deed must not be registered under the provisions of the India Registration Act, 1908.

c.

The trust's main object in the trust deed must not be to carry on the activity of a venture capital fund.

d.

The trust deed must have been duly registered under the provisions of the India Registration Act, 1908, and its main object must be to carry on the activity of a venture capital fund.

Discuss
Answer: (d).The trust deed must have been duly registered under the provisions of the India Registration Act, 1908, and its main object must be to carry on the activity of a venture capital fund. Explanation:For a trust applying for registration as a venture capital fund, the trust deed must have been duly registered under the provisions of the India Registration Act, 1908, and its main object must be to carry on the activity of a venture capital fund.
Q99.
What conditions must a body corporate fulfill when applying for registration as a venture capital fund?

a.

It must be set up or established under the laws of the Central Legislature only.

b.

Its director or any trustee must not be involved in any litigation connected with Securities Market.

c.

Its director or any trustee must have been convicted at some point in time.

d.

It is not required to be a fit and proper person.

Discuss
Answer: (b).Its director or any trustee must not be involved in any litigation connected with Securities Market. Explanation:For a body corporate applying for registration as a venture capital fund, one of the conditions is that its director or any trustee must not be involved in any litigation connected with Securities Market.
Q100.
What is the procedure for granting a certificate of registration to a venture capital fund by SEBI?

a.

The applicant must file a lawsuit against SEBI.

b.

The applicant must submit the requisite registration fee, and SEBI, after being satisfied, sends intimation to the applicant and grants a certificate.

c.

The applicant must request a meeting with SEBI officials.

d.

SEBI grants a certificate without any formalities.

Discuss
Answer: (b).The applicant must submit the requisite registration fee, and SEBI, after being satisfied, sends intimation to the applicant and grants a certificate. Explanation:The procedure for granting a certificate of registration to a venture capital fund involves the applicant submitting the requisite registration fee, and SEBI, after being satisfied, sending intimation to the applicant and granting a certificate.
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