Assertion (A) & Reason (B) MCQ

MCQ 11 Mark

Assertion (A): If a share of 100 is selling at 88 , then it is said to be selling at a discount of 12 or at 12 below par.
Reason (R): If the market value of a share is less than its nominal value the share is called at discount or below par.

✓
Both assertion and reason are correct and reason is the correct explanation of assertion.
B
Both assertion and reason are correct but reason is not the correct explanation of assertion
C
Assertion is correct but reason is incorrect.
D
Assertion is incorrect but reason is correct.

Answer

Correct option: A.

Both assertion and reason are correct and reason is the correct explanation of assertion.

(a) Both assertion and reason are correct and resason is the correct explanation of assertion.
Explanation:
... Nominal value $=100$
Market value $=88$
Market value < Nominal value

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MCQ 21 Mark

Assertion (A): If a share of 100 is selling at 88, then it is said to be selling at a discount of 12 or at 12 below par.
Reason (R): If the market value of a share is less than its nominal value the share is called at discount or below par.

✓
Both assertion and reason are correct and reason is the correct explanation of assertion.
B
Both assertion and reason are correct but reason is not the correct explanation of assertion
C
Assertion is correct but reason is incorrect.
D
Assertion is incorrect but reason is correct.

Answer

Correct option: A.

Both assertion and reason are correct and reason is the correct explanation of assertion.

(a) Both assertion and reason are correct and resason is the correct explanation of assertion.
Explanation:
... Nominal value $=100$
Market value $=135$
Market value $>$ Nominal value

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MCQ 31 Mark

Assertion (A): A man purchase 600 shares of face value 40 at par. It a dividend of 1680 was received at the end of the year, the rate of dividend is 7%
Reason (R): If annual income = number of shares rate of dividend face value of one share.
Then, Rate of dividend
$=\left(\frac{\text { annual income }}{\text { investment }} \times 100\right) \%$

✓
Both assertion and reason are correct and reason is the correct explanation of assertion.
B
Both assertion and reason are correct but reason is not the correct explanation of assertion
C
Assertion is correct but reason is incorrect.
D
Assertion is incorrect but reason is correct.

Answer

Correct option: A.

Both assertion and reason are correct and reason is the correct explanation of assertion.

(a) Both assertion and reason are correct and resason is the correct explanation of assertion.
Explanation:
The value of all the shares (investment)
$=40 \times 600=2,4000$.
Annual income = 1680
The rate of dividend $=\left(\frac{\text { Annual income }}{\text { investment }} \times 100\right) \%$
$=\left(\frac{1680}{24000} \times 100\right) \%=7 \%$

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MCQ 41 Mark

Assertion (A): The equity shareholders are paid dividend on the shares held by them.
Reason (R): As the equity shareholders are the owners and dividend form their earning.

A
Both assertion and reason are correct and reason is the correct explanation of assertion.
✓
Both assertion and reason are correct but reason is not the correct explanation of assertion
C
Assertion is correct but reason is incorrect.
D
Assertion is incorrect but reason is correct.

Answer

Correct option: B.

Both assertion and reason are correct but reason is not the correct explanation of assertion

(b)Both assertion and reason are correct but resason is not the correct explanation of assertion.
Explanation:
Equity shareholders receive dividends based on the number of shares they possess from the firm's profits, and they own the company to the extent that their shares are held.

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Mathematics Assertion (A) & Reason (B) MCQ

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