Mar 26 Quiz 02

Which act governs companies in Sri Lanka?

• Companies Act No. 07 of 2007

• Business Names Act No. 06 of 1918

• Partnership Ordinance Act No. 24

• Prevention of Frauds Act No. 07 of 1840

Which of the following is NOT a type of company incorporated under the Companies Act?

• Private limited company

• Public listed company

• Sole proprietorship

• Unlimited liability company

What is the minimum number of directors required in a private limited company?

• One

• Two

• Three

• Four

What is a key characteristic of a private limited company?

• Shares can be freely transferred to the public

• Business does not have a separate legal personality

• Liability of shareholders is limited to the value of shares purchased

• Business is owned by the government

Which is a difference between a private limited company and a public limited company?

• Private limited companies must have at least five directors

• Public limited companies can issue shares to the general public

• Private limited companies have no limit on the number of shareholders

• Public limited companies cannot be listed in CSE

Which of the following is NOT a type of share?

• Ordinary shares

• Preference shares

• Public shares

• Non-voting ordinary shares

What is a dividend?

• The company’s total profit before tax

• The price at which a company sells its shares

• The registration fee for a company

• The amount paid to shareholders as profit

What is the purpose of a solvency test in a public limited company?

• To check if the company has sufficient assets to pay dividends

• To determine the number of directors required

• To calculate shareholder liability

• To decide the interest rate on debentures

Which of the following is a feature of preference shares?

• They carry voting power

• They guarantee ownership in the company

• They are the same as non-voting ordinary shares

• They receive dividends before ordinary shareholders

What are corporate debentures?

• A form of short-term security issued by companies

• A document allowing shareholders to transfer shares

• A long-term financial security issued by a company to raise credit capital

• A company’s legal ownership certificate