Limited Companies

How many types of shares are there?

• 1

• 2

• 3

• 4

Who are the owners of limited company businesses?

• Sole Traders

• Partners

• Share holders

• Ventures

Which of the following sources of finance is described below?

This type of share is where a fixed dividend is received in return for investing in the company.

• Preferred Shares

• Ordinary Shares

• Debentures

• Preference Shares

Which of the following sources of finance is described below:

Selling shares in return for a share of the profits in the form of a variable dividend. A successful year means high dividend/poor year no or low dividend.

• Preference Share

• Ordinance Share

• Debenture

• Ordinary Share

________ 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

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.

• Debenture

• Dividend

• Share

• Loan

A company has?

• Perpetual existence

• Limited liability

• Separate legal entity

• All of the above

A portion of a company’s earnings distributed to its shareholders.

• Income

• Profit

• Dividend

• Earning

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

• Debenture

• Ordinary share

• Preference share

• Limited liability