Chapter 21: Limited Companies

A ___________ is a legal entity which has a separate identity from it shareholders, whose liability for the company’s debts is limited.

• Limited liability

• Limited company

• Partnership

• Unlimited liability

________ is the amount of capital issued to the shareholders.

• Paid up capital

• Called up capital

• Issued share capital

• Authorised capital

___________ is that part of the issued share capital for which payment has been requested from shareholders.

• Paid up capital

• Called up capital

• Issued share capital

• Authorised capital

__________ is that part of the called-up share capital for which the company has received payment from shareholders.

• Authorised capital

• Issued share capital

• Called up capital

• Paid up capital

______________ are those preference shares which must be bought back by the company at an agreed data and for an agreed price.

• Ordinary shares

• Redeemable preference shares

• Preference shares

________ is the total funds provided by the shareholders of the company.

• Equity

• Dividend

• Debenture

A __________ is a long-term loan which has a fixed rate of interest, payable irrespective of the profit of the company. It is also known as Loan Notes.

• Debenture

• Equity

• Reserves

• Ordinary shares

__________ are part owners of a limited company. They are people or institutions who hold one or more shares in a company.

• Share

• Equity

• Shareholders

• Debenture

___________ means that the risk or liability that each shareholder bears is limited to the value of the shares they hold.

• Limited liability

• Unlimited liability

• Equity

• Limited company

A __________ is a unit of investment in a company. These make up the capital of the company. They can have a nominal or face value of $ 0.50 , $ 1, $ 10 etc.

• Share

• Shareholders

• Debenture

• Dividend