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Business Studies · 2022 · 2 marks
CBSE 2022 · Region 4 · Set 1 · Q1
Virat has 2500 shares of Suraj Bulb Ltd. He received an offer from Suraj Bulb Ltd. to purchase two shares for every ten shares held by him. Identify…
Virat has $\displaystyle 2500$ shares of Suraj Bulb Ltd. He received an offer from Suraj
Bulb Ltd. to purchase two shares for every ten shares held by him.
Identify and explain the method of floatation of new issue reflected in the
above lines.
Marking-scheme solution
The method of floatation of new issue reflected in the
• above lines is Right issue.
It is a method of floatation of new issue in which the
shareholders are offered the ‘right’ to buy new shares in
• proportion to the number of shares that they already possess.
It is the privilege given to existing shareholders to subscribe
to a new issue of shares according to the terms and conditions
of the company.
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CBSE Class 12 Business Studies past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.