Issue of shares (theory)

 A company has ……………
                             
                                       

• (A) Separate Legal Entity  

• (B) Perpetual Existence

• (C) Limited Liability

•   (D) All of the Above

Shareholders are:
             
                   

• (A) Customers of the Company 

•   (B) Owners of the Company

• (C) Creditors of the Company

• (D) None of these

Who are the real owners of a company?
                                         
                               

• (A) Government      

• (B) Board of Directors

• (C) Equity shareholders    

• (D) Debenture holders

A Company is created by:
                   
                                                     

• (A) Special act of the Parliament 

• (B) Companies Act

• (C) Investors  

•   (D) Members

The liability of members in a Company is:
                                                     
                                                 

• (A) Limited 

• (B) Unlimited

• (C) Stable      

•   (D) Fluctuating

 Liability of a shareholder is limited to ………………… of the shares allotted to him :

• (A) Paid up Value

• (B) Called up value

• (C) Face value

• (D) Reserve Price

Maximum number of members in a private company is:
                                     
                                   

• (A) 7     

• (B) 200

• (C) 20     

• (D) No Limit

Shareholders receive from the company:
                                   
                                 

• (A) Interest

• (B) Commission

• (C) Profit    

•   (D) Dividend

 A Company may issue ……………….

• (A) Equity Shares

• (B) Preference Shares

• (C) Equity and Preference both shares

• (D) None of the Above

 To whom dividend is given at a fixed rate in a company?

• (A) To equity shareholders

• (B) To preference shareholders

• (C) To debenture holders

• (D) To promoters