Corporate Tax Planning

Corporate Tax Planning (EDL 405)-
Semester IV
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1st Module Assessment
Case Study
Case Study # Chasing Taxes
Indonesia and India have embarked on big, bold and historic hunts for hidden assets. The moves
come amid a global shift in attitude toward tax avoidance and offshore holdings but the emerging
economies have singular reasons for seeking undeclared riches. Each wants fresh cash for much-
needed infrastructure projects and a chance for a fairer distribution of wealth.
In the last days of September, in the dark of 3 a.m., people began queuing outside a single
government building in central Jakarta. They were clutching financial papers that in some cases
exposed offshore accounts worth billions of rupiah. Two months earlier, President Joko Widodo
had launched a massive tax amnesty campaign to repatriate hidden assets to Indonesia. As the
first reporting deadline loomed, crowds swelled into the office that handles the tax affairs of the
country's wealthiest individuals and companies.
More than 10,000 people a day answered the president's pitch in September: declare assets now
and take advantage of a discounted tax rate -- as little as 2% compared to 25% -- and, in turn, be
part of Indonesia's future. Revenue from the nine-month amnesty, continuing through March, is
promised to build railway networks, ports and airports in a country whose prospects, politically
and economically, have been on the ascent.
Widodo, who was elected in 2014, has cast the program as good for business -- and pivotal to the
next generation. Twice before Indonesia tried amnesties to lure money back home but those
efforts in 1964-65 and in 1984 failed, in part, due to poor incentives. Now Indonesia has
calculated that political stability and a dramatic drop in the tax rate could help to bring in an
estimated 11,400 trillion rupiah ($851 billion) parked overseas.
We have a large amount of money outside, Widodo told a group of businessmen in Jakarta this
summer. "What is most important now is to bring this money back to our country. We need your
participation right now to build the nation."
Indonesia's call for revenue echoes across many countries in Asia where private wealth has risen
steeply in the past decade. New wealth accounts for about 60% of the total wealth growth in the

Asia-Pacific region excluding Japan and, by 2019, the region is expected to account for 26% of
all global financial wealth, according to a recent Boston Consulting Group report. It is those
potential taxpayers that emerging economies want to rein in as partners in their next phase of
development.
People streamed to banks in New Delhi to try to withdraw or deposit old currency notes banned
on Nov. 8. India has taken more radical steps this year, starting with amnesty and then launching
a wholesale assault on its shadow economy by banning high-denomination bank notes. Life in
the cash-starved society has morphed into a kind of collective suffering. But both India and
Indonesia see their experiments as helping to secure economic ballast at a critical time to attract
domestic and global investment. Transparent accounting at home will help each country to
prepare for tougher global standards for financial information that will go into effect next year.
Indonesia's hunt for revenue is spurred by ambition for this country of 20 million taxpayers. It
has enjoyed 5% annual growth for the past few years. In order to keep this growth momentum,
the country needs to build and improve its infrastructures such as airports and power grids. The
government has estimated 5,500 trillion rupiah is needed through 2019 for infrastructure; the
state budget can likely cover a quarter of that.
Amnesty became appealing first to trade associations, law firms and major developers that liked
the lower tax rate -- and possibly saw future government contracts for big construction. Wealth
managers said tax rates were locked in depending on how early declarations were made. That
sparked the September rush. "Just with 2% or 4%, you can bring the 'dark' money under the sun,"
said a private banker in Singapore. "Once you declare amnesty, the money is no longer 'dark.'"
10 on 10 
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2nd Module Assessment
Case Study
Case: Accounting for Merger and Acquisitions
Mergers and acquisitions are types of business combinations in which separate entities or
operations of entities are merged into one reporting entity. There are three common forms of
mergers that are the result of the relationship between the merging parties.
In a horizontal merger, a company acquires a competitor firm that produces and sells an identical
or similar product in the same geographic area.
In a vertical merger, a company acquires a customer or supplier.
Conglomerate mergers include a number of other types of business combinations, regardless of
common geographic location or industry affiliation. Conglomerate mergers may arise when a

company wants to expand for reasons not directly related to competition in the marketplace, such
as when a furniture manufacturer buys an appliance manufacturer or when a sales agency in
Ohio buys a sales agency in Florida. There are two main methods of mergers.
Under the pooling method, all assets and liabilities were recorded at existing book values while
goodwill was not recorded. As a result, the values for the assets and liabilities listed in the
accounting records and financial statements of each company involved in a merger or acquisition
were carried forward to the surviving company that remained or was created after the business
combination. Under the pooling method, no new assets or liabilities were created by the business
combination. Further, the income statement of the surviving company included all of the
revenues and expenses of the fiscal year for each company. Ultimately, the operating results for
both companies were combined for all periods prior to the closing date, and previously issued
financial statements were restated as though the companies had always been combined.
The purchase method is now the preferred accounting method used for business combinations.
Under the purchase method, the purchase price and costs of the acquisition are allocated to the
identified assets that are acquired, whether tangible or intangible and to any liabilities that are
assumed based on the current fair market value of the assets and liabilities. If the purchase price
exceeds the fair value of the purchased company's net assets, the excess is recorded as goodwill.
Goodwill or the excess of the cost of an acquired entity over the net of the amounts assigned to
assets acquired and liabilities assumed, is almost always present because the purchase price of a
target or its assets is almost always higher than the sum of the fair values of all of the assets
being purchased. This is because a company is more than just the sum of its assets. It also has
intangible qualities such as its reputation in the business community that add to its value beyond
the market value of its assets. However, the purchase method does not allow the allocated
purchase price for any asset to exceed its fair value. Thus, the excess is recorded as goodwill as a
type of catchall category.
Question-1: .................... statement of the surviving company included all of the revenues and
expenses of the fiscal year for each company.
a. Loss
b. Profit
c. Income
d. All
Question 2. Goodwill is a ????.. Asset.
a. Precious
b. Tangible
c. Intangible
d. Accounting
Question 3. If the purchase price exceeds the fair value of the purchased company's net assets,
the excess is recorded as ?????..
a. Profit
b. Loss
c. Goodwill
d. None
Question 4. In which type of merger, a company acquires a customer or supplier.
a. Horizontal
b. Vertical

c. Conglomerate
d. All
Question 5. In which type of merger, company acquires a competitor firm that produces and sells
an identical or similar product in the same geographic area.
a. Horizontal
b. Vertical
c. Conglomerate
d. All
Question 6. Under the ???.. method, all assets and liabilities are recorded at existing book values
while goodwill is not recorded.
a. Balance
b. Vertical
c. Pooling
d. Purchase
Question 7. Under the ????. method, no new assets or liabilities were created by the business
combination.
a. Balance
b. Vertical
c. Pooling
d. Purchase
Question 8. What actually comes in business combination?
a. Merger
b. Acquisitions
c. None
d. Both
Question 9. Which merger includes a number of other types of business combinations?
a. Horizontal
b. Vertical
c. Conglomerate
d. All
Question 10. Which method is now the preferred accounting method used for business
combinations.
a. Balance
b. Vertical
c. Purchase
d. Pooling
10 on 10 
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3rd Module Assessment
CASE STUDY-
Valuation of Goodwill and Shares
VALUATION OF GOODWILL
I. Methods for Valuation of Goodwill:
Ø Capitalisation Method Ø Super Profits Method Ø Annuity Method
Capitalization Method Steps:
o Future Maintainable Profits (FMP) o Normal Rate of Return (NRR) o
Normal Capital Employed (NCE = FMP/NRR)
o Actual Capital Employed (ACE) o Goodwill = NCE – ACE
Super Profits Method Steps:
o Average Capital Employed (Avg CE) o NRR o Normal Profits (NP = Avg
CE x NRR) o FMP
o Super Profits (SP = FMP – NP) o Goodwill = SP x No of Years
Annuity Method Steps:
o SP o Goodwill = SP x Annuity Factor
II. Capital Employed:
Ø Liabilities Side Approach = Equity Share Capital + Reserves and Surplus – Non-Trading
Assets – Misc Expenditure (+/-) Adjustments in values of Assets or Liabilities
Ø Assets Side Approach = Total Assets (Excld Misc Expenditure and Non Trading Assets) –
Outside Liabilities – Preference Share Capital
Notes:
o Non Trading assets shall be excluded (Investments mentioned in the balance sheet shall be
excluded, if nothing is mentioned assume it as non trading investments. If nothing is given
regarding purchase date of investment it is assumed it is purchased at the beginning of the year.
o Asset must be taken at current cost. If nothing is mentioned take value given in the balance
sheet.
o If we already have goodwill in balance sheet that shall be excluded.
o Proposed dividend is not an outside liability whereas preference dividend is an outside
liability. (Appearing in Balance Sheet)
o Dividend Paid last year if there is no proposed dividend then the dividend paid shall be taken
into consideration for capital employed.
o Sinking Fund is a part of Reserves and Surplus
o Workmen’s Compensation fund is a part of Shareholders fund.
o Preference shares are treated as cumulative and non-participating if nothing is mentioned
o Unclaimed dividend is considered as outside liability it is different from proposed dividend.
o If the profits for past and profits for future are given we have to take profits of future for
FMP. And less weightage shall be allotted to future profits.
o Gratuity fund, workmen’s compensation fund is an outside liability.

o Capital Employed for Long term funds = Capital Employed as calculated above + Loans and
Preference Share Capital
o The difference in Balance sheet is outside liability if it appears on liability side and assets if
vice versa.
Question-1: ......................Fund is a part of Reserves and Surplus.
a. Profit
b. Loss
c. Suspense
d. Sinking
Question 2. ACE stand for Average ????? Employed.
a. Money
b. Profit
c. Expense
d. Capital
Question 3. Difference in Balance sheet is outside liability if it appears on Asset side and liability
if vice versa.
a. TRUE
b. FALSE
c. Sometimes
d. Never
Question 4. Gratuity fund, workmen?s compensation fund is a outside liability.
a. TRUE
b. FALSE
c. Sometimes
d. Never
Question 5. NRR stands for ?????? rate of return
a. Nominal
b. Negative
c. Normal
d. Average
Question 6. Unclaimed ???????.is considered as outside liability it is different from proposed
dividend.
a. Dividend
b. Liability
c. Asset
d. Loss
Question 7. Which is not the outside liability?
a. Proposed Dividend

b. Average Return
c. Interest Income
d. Principle Amount
Question 8. Which is not the part of Capitilisation Method Process.
a. FMP
b. NRR
c. ACE
d. All
Question 9. While calculating/Valuating goodwill, asset must be taken at current cost.
a. TRUE
b. FALSE
c. Sometimes
d. Never
Question 10. Workmen?s Compensation fund is a part of ??????. fund.
a. Stakeholder
b. Propreitor
c. Owners
d. Shareholders
10 on 10 
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4th Module Assessment
Case Study # Lessening Income Tax Burden
If you are reading this, you are likely to be someone whose income exceeds the threshold of Rs
2.5 lakhs for paying taxes. There are some legitimate ways of saving taxes and the good thing is
that most of them also help you grow your wealth. These options usually have a lock-in period
and vary in the nature and amount of return they provide. You must also remember that each of
these alternatives also serves specific purposes and tax saving is not the purpose but an ancillary
benefit of that.
With the current financial year’s end approaching, there is precious little room for
procrastination. According to various research reports, less than 3% of the Indian population
(~35 million taxpayers) bears the total income tax burden of the country, of which, 89% fall in
the tax slab of 0-5 lakh.

You might have cough up high amounts if you fail to plan your taxes judiciously. Note that any
delays in implementing your tax plans invariably result in non-accrual of tax benefits.
Public provident fund
The amount invested in public provident fund can be claimed as a deduction from gross total
income under Section 80C. The interest on PPF account is also exempted from income tax. Most
experts reckon that this is one of the preferred investment options.
National pension scheme
This scheme offers a good tax exemption benefit under Section 80CCD of the act. The
contribution made by an employee to the NPS qualifies for this tax benefit and the upper limit of
1.50 Lakh (one lakh up to AY 2014-15) under Section 80C of the act.
Equity savings schemes
If you are invested in the stock market or are interested in doing so, invest in listed equity tax
savings schemes (under 80C), for example, Equity Linked Savings Scheme (ELSS).
National savings certificate
National Savings Certificate is a scheme introduced by the government to promote the habit of
savings among people. Under this scheme, the money is accepted by the government through
post offices. An investor can avail tax deduction under Section 80C for such investments.
Life insurance
Apart from offering risk coverage, life insurance premium for self and family are applicable for
tax deductions. Premiums for life insurance plans covering you, spouse, and dependent children
are eligible for a deduction up to Rs. 1 lakh under Section 80C of the Income Tax Act.
Health insurance
Not only certain expenses incurred during medical treatment, but health insurance premiums are
also eligible for tax deduction. Premiums paid up to Rs. 25,000 for medical coverage for
yourself, your spouse, and children are eligible for deduction. Further deduction of Rs. 25,000 is
available for medical insurance premiums paid for parents. The limit of Rs. 25,000 gets extended
to Rs. 30,000 if the plan is for a senior citizen. Always opt for those tax-saving instruments,
which fulfil your financial goals and cut your income tax payments.
Question-1: According to income tax act, how much percentage people fall in the tax slab of 0-5
lakh.
a. 25,000
b. 98%
c. 89%
d. 2.5 Lakh
Question 2. As per this case, up to which amount, there is no tax.
a. 2 Lakh
b. 2.5 Lakh
c. 3 Lakh
d. Not Clear
Question 3. Do senior citizens get some extra advantage under 80 C, for health insurance
expenses.
a. Always
b. Sometimes

c. Only 80 Years above
d. Only Ex Govt Employees
Question 4. ELSS investments are made in ???. Market.
a. Money
b. Capital
c. Treasury
d. All
Question 5. Not only certain expenses incurred during medical treatment, but health insurance
premiums are also eligible for tax deduction.
a. TRUE
b. FALSE
c. Sometimes
d. Never
Question 6. NSCs are sold by ?????.
a. Banks
b. Insurance Companies
c. Post Offices
d. Government
Question 7. Premiums for life insurance plans covering ??????... are eligible for a deduction.
a. Insurer
b. Sopouse
c. Kids
d. All
Question 8. The interest on PPF amount is tax free.
a. TRUE
b. FALSE
c. Sometimes
d. Never
Question 9. Under which section of Income Tax act, individuals can do savings and save tax.
a. 80 C
b. 80 D
c. NPS
d. ELSS
Question 10. Who is covered under health insurance.
a. Self
b. Spouse
c. Kids
d. All
10 on 10 

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5th Module Assessment
Case Study
The merger between AOL and Time Warner
The merger between AOL and Time Warner was declared on 10 January 2000 and it was worth
$183 billion. That was the biggest merger in the history of American business world. AOL had
about 40% share of online service in the United States and the Time Warner have more than 18%
of US media and cable households. The merger is taken into account to be a vertical merger
between one amongst the most important web service suppliers and this one amongst the biggest
media and entertainment firm. The new company was formed and named as AOL Time Warner
and was the fourth biggest company in the US, as evaluated by stock market valuation. After the
merger deal, AOL become a subsidiary the Time Warner Company at stage and has operations in
Europe, North American countries and Asia. As a web service supplier, AOL on look severely
rival from Microsoft, Yahoo and different low price net access suppliers. Thus, the corporate
tries to induce advertising and e-commerce growth, thereby separate it by rival (BBC, 2000).
Impact of deal on the performance: After the official announcement of deal merger between
AOL and Time Warner growth rate in revenue has dramatically declined. The profitability
suffered a good plunge when the alliance. The potency of the new united firm was terribly poor
as determined from the asset turnover ratio. Even the liquidity of the firm suffered once the
merger as evident from this ratio. There are several reasons for failure however the foremost vital
reason was the unequal size of the companies, wherever AOL was overvalued as a result of web
bubble. According to New York share exchange before the deal the share price of AOL is 73 and
Time Warne is 90 but after announcement of the merger deal the shareholders dissatisfaction
shown on share market of AOL and Time Warner and the shares drop down to 47 and 71
respectively. AOL and Time Warner fail to keep up shareholders satisfaction levels this
conjointly one among the rationale to loosing stability of share holders according to the Times
magazine.
The market valuation of both the companies AOL and Time Warner were decline from the
starting of the merger to end of the deal. AOL has drop down approximately 60 percent and
Time Warner around 30 percent of market value once the deal has been closed. The market
valuation of both the companies from 2000 to 2011 was dropped down drastically. The AOL
market value has dropped from 167$ billion to 107$ billion and the Time Warner 124$ billion to
99$ billion and is the biggest dropped down of any company in American history.

Reasons for merger Failures: 1+1 = 3 sounds great but in practice or reality every time it's not
working properly and go awry. Historical trends show that roughly 2 thirds of huge mergers can
let down on their own terms, which implies they're going to lose worth on the stock exchange.
The motivations that mainly drive mergers are frequently blemished and efficiencies from
economies of scale might prove elusive (Investopedia, 2010).
Adoption of the new technology takes time for the normal company. In late twentieth century
dramatic changes has occur in web. Migration of recent mode of web service is connected with
high barricade and a number of other social and legal problems was encircled around and
recently established firms like Yahoo, MSN etc was giving high edge competition. Economical
rate of inflation is high, to create economy stronger American government has modified the
policy and taxation rules have throwing a dispute for AOL to beat this things merger with Time
Warner became a fruit to the AOL. Public and private policies are one of the reasons for the
merger failure. The reasons of merger failure is overvaluation of AOL shares has shown a
dramatic impact on the deal, whereas stake holders are not satisfied and improper
communication with consumers damages the trust of user. The merger's fail was a result not only
because of the replete of the dot-com bubble but it also the failings by AOL Time Warner
management to ever really integrate the two firms.
Conclusion
One size does not match all. Several firms think that the most effective way to get ahead is to
expand business boundaries through mergers and acquisitions (M&A). Mergers produce
synergies and economies of scale, increasing operations and cutting prices. Investors will take
comfort within the idea that a merger can deliver increased market power. The same thing
happens with the America's biggest merger deal between AOL and Time Warner. They think that
merger is helpful for both the companies but it not matched for both of them. Both AOL and
Time Warner synergies shows diversification is that the main goal of the firms to extend the
revenue and to attain the value gain because of the amendment in mode of technology and
increase in the competition for the well established firms. Throughout the phase of merger web
bubbles also the main cause for over valuation of shares. In distinction Time Warner was the
victim of net bubble. This type merger failure cases shows support the European Commission to
restrict the American companies to merge with the European companies. European commission
has a right to govern the European market and make stable the Euro Zone market. The European
commission (EC) is thought of defending domestic companies from foreign rival and they
encourage their zone mergers. So the European commission doesn't want any problems like dis-
economies of scale, clashes of cultures and reduction of flexibilities by the merger of American
companies. So the merger is highly regulated by European Union to avoid major concentration
of economic power in euro zone. The merger deals cases like AOL and Time Warner helps the
European Commission (EC) to make strict rules to restrict the merger and acquisition (M&A) of
American companies with the Euro Zone companies.
Question-1: After the deal announced, the sales growth of both the companies noticed ????
a. Fall
b. Increase
c. Stability
d. Can't Say

Question 2. After the historical merger announced, the US share market???
a. Increased
b. Decreased
c. No Impact
d. Welcomed
Question 3. After the said merger, new company had which position in the US market.
a. First
b. Second
c. Third
d. Fourth
Question 4. AS per the case, most of the mergers in US have been ????.
a. Successful
b. Failed
c. Welcomed
d. Stable
Question 5. The AOL and Warner merger took place in which year.
a. Not Given
b. 2001
c. 2000
d. 2010
Question 6. The main reason for failure of a merger is not to get the benefit of ?????
a. Goodwill
b. Economies of Scale
c. Reputation
d. All
Question 7. The market valuation of both the companies AOL and Time Warner were ????..from
the starting of the merger to end of the deal.
a. Up
b. Down
c. Stable
d. Can't Say
Question 8. The same thing happens with the America's biggest merger deal between AOL and
Time Warner.
a. TRUE
b. FALSE
c. Not Given
d. Can't Say
Question 9. What is normally expected from a merger initiative?

a. Economies of Scale
b. Synergy
c. Cutting Prices
d. All
Question 10. What kind of merger it is?
a. Horizontal
b. Vertical
c. Conglomerate
d. None
10 on 10 
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Assignment 2
Case Study # Is FDI the new engine of growth?
The official discussion paper (DP), Industrial Policy—2017, (goo.gl/jEPs6u) is a welcome effort.
That said, while it sets down a laundry list of known constraints, it ignores serious analyses of
poor industrial performance. Pedantically discussing competitiveness, the policy paper makes
very little reference to trends in global trade, or inadequate domestic industrial demand, falling
capacity utilization or negative credit growth (“Economic Reforms And Manufacturing Sector”
by R. Nagaraj, Economic And Political Weekly, 14 January 2017).
There is an exception, however. Flagging the boom in foreign direct investment (FDI) inflows,
the paper claims it as a badge of success for the official policy. The report says, “Total FDI
inflow was $156.53 billion since April 2014 ($45.15 billion in 2014-15, $55.56 billion in 2015-
16, and $60.08 billion in 2016-17). Highest ever annual inflow ($60.08 billion) was received in
2016-17. FDI equity inflows increased by 52% during 2014-16 and 62% since the launch of
Make In India. India is now ranked amongst top 3 FDI destinations (World Investment Report
2016, Unctad) and ninth in the FDI Confidence Index in 2016, up two places from 2015 (AT
Kearney)”.
Laudable as that may be, what did the FDI inflow do for the economy? Did it augment industrial
output and investment growth (meeting Make In India goals) as expected in theory? The official
paper claims it has. But has it really?
In principle, FDI—as against foreign portfolio investment which flows into the secondary capital
market—brings in long-term fixed investments, technology and managerial expertise, together
with foreign firms’ managerial control. FDI in green field investment is for fresh capital

formation, and in brown field investment for acquiring existing enterprises with the expectation
of improving the firm’s productivity and profits.
In practice, however, this may be different. Currently, FDI does not come from leading global
producers of goods and services, but from shadow banking entities such as private equity (PE)
funds. In 2014-15, PE accounted for 60% of total foreign inflows, and the top three recipients
were Flipkart, Paytm and Snapdeal (Bain & Co.’s “India Private Equity Report 2016”). These
funds are used to finance retail trade of mostly imported consumer goods to expand their market
shares, in order to boost the firm’s market valuations. Since PE investments are highly leveraged
(high debt-equity ratios), rising markets valuations help them reap disproportionate gains when
they make their exit.
PE firms do not commit to fresh capital formation or invest in technology, as expected of FDI.
India being a bright spot in world economy lately, global retailers such as Amazon are rushing
here to build their brand’s value and acquire market share using abundant low-cost international
capital. Could such financing of retail trade with short time horizons constitute the (new) engine
of India’s industrial growth and employment generation? I wonder.
This is why despite rising FDI inflows, domestic capital formation rate, or industrial capacity
utilization, have declined secularly. What is going on, I would contend, is foreign capital
financed import-led consumption growth, not augmenting domestic output to meet Make In India
goals. Therefore, the current growth pattern would only contribute to economic fragility under
free capital flows, as the social costs of servicing the external capital in rupee terms could be
significantly high in the longer run.
The official paper also pins hope on outward FDI to strengthen domestic industrial and services
capabilities. Since 2000, the outflow has risen remarkably, often seen as the coming of age of
domestic enterprises, acquiring factories and firms (and global brands) mostly in advanced
economies, best illustrated by Tata’s acquisition of luxury car maker, Jaguar Land Rover. After a
brief dip during the financial crisis, the outflows have maintained momentum. But Indian firms
are no longer chasing foreign acquisitions; if anything, they are licking the wounds of hasty
misadventures over the past decade—for instance, the Videocon group.
So where is the outflow going? Apparently, India is being used as a conduit for routing
international capital for tax arbitrage. Olivier Blanchard and Julien Acalin’s research paper
(What Does Measured FDI Actually Measure, Peterson Institute for International Economics,
October 2016) offers an insightful answer. It shows that inward and outward FDI flows across
emerging market economies are highly correlated, responding to the US policy rate. India ranks
sixth in descending order among 25 emerging market economies (far higher than China). The
study’s sharp conclusions seem instructive: “...‘measured’ FDI gross flows are quite different
from true flows and may reflect flows through rather than to the country, with stops due in part
to (legal) tax optimization. This must be a warning to both researchers and policy makers.”
Put simply, inward and outward FDI flows apparently represent channelling of global capital via
India to take advantage of tax concessions (called “treaty shopping”). Hence such short-term
foreign capital movements in and out of the country may contribute little to augment domestic
capability. If the findings are correct, then there is a need to re-examine recent FDI’s true
contribution.
Subject to closer verification, if the foregoing arguments and evidence are valid, then the recent
FDI flows have contributed little by way of augmenting domestic capabilities, output and
employment growth. Inward FDI, increasingly from PE funds, has largely financed e-commerce
firms, driving import-led consumption boom. Outward FDI, instead of enabling domestic

enterprises to access external markets and technology, has instead helped international capital to
take advantage of India’s tax treaties to optimize tax burden of global firms. If the proposed
industrial policy is serious about realizing the vision of Make In India, it needs to look
elsewhere, not at FDI.
Question-1: Amazon is a ??????.. Brand.
a. Indian
b. Gujrati
c. Canadian
d. USA
Question 2. Despite rising FDI inflows, domestic capital formation rate, or industrial capacity
utilization, have declined secularly.
a. TRUE
b. FALSE
c. Can't Say
d. Sometimes
Question 3. Fdi from 2014 - 17 has shown ??????.. Trend.
a. Decreasing
b. Increasing
c. Neutral
d. Disturbed
Question 4. FDI in green field investment is for ?????. capital formation.
a. Green
b. Red
c. Traditional
d. Fresh
Question 5. FDI stands for foreign ??????.. Investment.
a. Dear
b. Direct
c. Distance
d. Demote
Question 6. Foreign Portflio Investment flows in ??????. Market.
a. Bullian
b. Mutual Funds
c. Capital
d. Money
Question 7. Indian firms are chasing foreign acquisitions.
a. Right
b. Wrong
c. Sometimes

d. Can't Say
Question 8. Inward FDI, increasingly from PE funds, has largely financed ???... Firms.
a. Science
b. Pharma
c. e-commerce
d. Manufacturing
Question 9. PE firms do not commit to fresh capital formation.
a. TRUE
b. FALSE
c. Can't Say
d. Sometimes
Question 10. which Indian Company didn't recive decent FDI amount?
a. Flipkart
b. Paytm
c. Snap Deal
d. Amazon
10 on 10 
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