Share Capital

Separate legal entity is not a feature of a company

• True
• False

Shares cannot be issued at ……………….. by a new company.

• par
• premium
• zero
• discount

Share capital of a company is divided into small units. Every unit is known as a (a)   .

The options granted by the company to its employees and employee directors at a price that is lower than the market price is (a)   .

Actual number of shares offered to the public by the company for subscription is known as (a)   .

The application money should be refund within (a)   days from the closure of the issue.

X Ltd purchase the running business of Y Ltd consist total asset of Rs. 10,00,000 liabilities of Rs. 2,00,000. X Ltd paid Rs. 2,00,000 immediately in cash and balance by issuing 7,000 share of Rs. 100 each at a premium of Rs. 20 per share. The goodwill A/c will be debited by Rs. (a)   .

A Company allotted 20,000 shares to applicants of 50,000 shares after rejecting 10,000 applications. The ratio in which company allotted the share will be

• 5:2

• 5:3

• 2:1

• 3:1

Subscribe share capital can be less than or equal to the issued share capital but cannot be more

• True

• False

Securities premium reserve can be used for issuing partly paid bonus shares

• True

• False