Types of Joint Stock Companies

Which business unit could have its shares quoted on the Stock Exchange?

• Co-operative

• Partnership

• Private Limited Company

• Public Limited Company

All of the following re legal requirements for the formation of a company EXCEPT

• drawing up of memorandum and articles of association by the promoters

• filing of a prospectus with the Registrar of Companies if shares are offered for sale to the public

• publication and filing of a copy of its audited balance sheet and other related documents with the Registrar of Companies

• undertaking that all profits realized will be distributed among the different classes of shareholders

The term 'Limited' after the name of a company means that

• a shareholder can purchase only a limited number of shares in a company

• a member's liability is limited to the amount which he has purchased as shares in the company

• the company engages in the sale of a limited range of products

• the company is legally registered and can commence operations

Invitations to th public to subscribe share capital are made in a

• certificate of trading

• memorandum of association

• prospectus

• share certificate

A person elected by the shareholders or appointed to share responsibility for policy making in a company is

• company director

• company secretary

• general manager

• management consultant

A dividend is

• income of a company after shareholders have been paid

• income which a shareholder receives from his investment in the company

• portion of the profits available for distribution to shareholders

• purchase price of an ordinary share

Fifty (50) Maximum number of members in Public Limited company

• TRUE

• FALSE

Management of Joint stock company is done by Board of Directors elected by Shareholders.

• TRUE

• FALSE

Which of the following company need to compulsory issue the Prospectus

• Private Limited Company

• Partnership

• Cooperatives

• Public Limited Company

Shares are freely transferable in case of Private company

• TRUE

• FALSE