NISM Series XIX-C AIF Managers Certification Exam -31
NISM Series XIX-C AIF Managers Certification Exam -31
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Q 1. What is the most widely used market-related multiple in valuation?
a) EV/EBITDA
b) EV/Sales
c) Price-Earnings Multiple (P/E Ratio)
d) NAV per Share
Q 2. What are the major contributors to changes in the value of an investee company?
a) Changes in the global economy
b) Changes in the tax environment
c) Changes in the regulatory framework
d) Changes in consumer preferences
Q 3. What does Customer Lifetime Value (CLTV) represent?
a) Total revenue generated each month by the company
b) Total revenue generated annually by the company
c) Total revenue generated from a customer over their entire relationship with the company
d) Percentage of customers who discontinue using a product or service
Q 4. What does Return on Investment (ROI) measure?
a) Cash generated from a start-up's core business operations
b) Profitability of an investment relative to its cost
c) Rate at which a start-up spends its cash flows
d) Average revenue per order
Q 5. What is the maximum acceptable date for the valuation report by the Merchant Banker under Rule 11UA(2)(B)?
a) 60 days prior to the date of issue of CCPS
b) 120 days prior to the date of issue of CCPS
c) 180 days prior to the date of issue of CCPS
d) 30 days before the date of issue of CCPS
Q 6. What is the role of the Investment Manager in the calculation of NAV?
a) Allocating capital to different assets
b) Allocating unique numbers to a series of units
c) Calculating Series NAV
d) Allocating expenses to different series
Q 7. What percentage of investors must be approved for making in-specie distributions during the Liquidation Period?
a) 50%
b) 60%
c) 75%
d) 100%
Q 8. What type of information is covered under "specific details of deals executed by the fund" in fund reporting?
- A) Marketing initiatives undertaken by the fund
- B) Performance metrics of individual investments
- C) Transaction details such as new investments, follow-on investments, debt financing, exits, and liquidation of investments
- d) Changes in management structure
Q 9. What constitutes a change of control according to the AIF Regulations?
- A) Any change in the regulatory environment
- B) Any change in the fund's investment objectives
- C) Any change in the legal formation or ownership of the sponsor or manager, or a change in controlling interest
- d) Any changes in the fund's fee structure
Q 10. Which entity appoints a custodian for the safekeeping of the securities/goods of the fund?
a) Investment Manager
b) Compliance Officer
c) Sponsor
d) Board of Directors
Q 11. How is the value of unliquidated investments determined if bids are arranged for at least 25% of their value?
- A) Based on market value.
- B) Based on the highest bid.
- C) Based on the average bid value.
- d) Based on the valuation done by two independent valuers.
Q 12. What should AIFs disclose in their reports in case of a change in control of the Sponsor, Manager, or Investee Company?
- A) Nothing, as it's not relevant to investors
- B) Financial projections
- C) Information on key investment teams
- d) Change in control of the Sponsor, Manager or Investee Company
Q 13. What is the primary category of income under which dividend income is taxed for Category III AIFs?
a) Income from Business
b) Income from Salary
c) Income from Other Sources
d) None of the above
Q 14. What kind of companies can receive consideration for the issue of shares that exceed the fair market value without being charged tax under certain circumstances?
a) Publicly traded companies
b) Government-owned companies
c) Venture capital undertakings
d) None of the above
Q 15. Which tax does the Fund need to pay on delivery-based purchase/sale transactions in equity shares entered into a recognized stock exchange?
a) Securities Transaction Tax (STT) payable by purchaser: 0.1%
b) Securities Transaction Tax (STT) payable by seller: 0.1%
c) Securities Transaction Tax (STT) payable by purchaser: 0.025%
d) Securities Transaction Tax (STT) payable by seller: 0.2%