Free Printable Issue of shares (theory)

1.

A company has ……………

a)

(A) Separate Legal Entity

b)

(B) Perpetual Existence

c)

(C) Limited Liability

d)

(D) All of the Above

2.

Shareholders are:

a)

(A) Customers of the Company

b)

(B) Owners of the Company

c)

(C) Creditors of the Company

d)

(D) None of these

3.

Who are the real owners of a company?

a)

(A) Government

b)

(B) Board of Directors

c)

(C) Equity shareholders

d)

(D) Debenture holders

4.

A Company is created by:

a)

(A) Special act of the Parliament

b)

(B) Companies Act

c)

(C) Investors

d)

(D) Members

5.

The liability of members in a Company is:

a)

(A) Limited

b)

(B) Unlimited

c)

(C) Stable

d)

(D) Fluctuating

6.

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

a)

(A) Paid up Value

b)

(B) Called up value

c)

(C) Face value

d)

(D) Reserve Price

7.

Maximum number of members in a private company is:

a)

(A) 7

b)

(B) 200

c)

(C) 20

d)

(D) No Limit

8.

Shareholders receive from the company:

a)

(A) Interest

b)

(B) Commission

c)

(C) Profit

d)

(D) Dividend

9.

A Company may issue ……………….

a)

(A) Equity Shares

b)

(B) Preference Shares

c)

(C) Equity and Preference both shares

d)

(D) None of the Above

10.

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

a)

(A) To equity shareholders

b)

(B) To preference shareholders

c)

(C) To debenture holders

d)

(D) To promoters

11.

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called :

a)

(A) Equity Share

b)

(B) Non-cumulative preference share

c)

(C) Non-convertible preference share

d)

(D) Non-guaranteed preference share

12.

Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called :

a)

(A) Cumulative Preference Share

b)

(B) Non-cumulative Preference Share

c)

(C) Convertible Preference Share

d)

(D) Non-convertible Preference Share

13.

A preference share which does not carry the right of sharing in surplus profits is called ……………

a)

(A) Non-Cumulative Preference Share

b)

(B) Non-participating Preference Share

c)

(C) Irredeemable Preference Share

d)

(D) Non-convertible Preference Share

14.

Nominal Share Capital is

a)

(A) that part of authorised capital which is issued by the company

b)

(B) the amount of capital which is actually applied by the prospective shareholders

c)

(C) the amount of capital which is actually paid by the shareholders

d)

(D) the maximum amount of share capital which a company is authorised to issue

15.

The portion of the capital which can be called-up only on the winding up of the Company is called

a)

(A) Authorized Capital

b)

(B) Called up Capital

c)

(C) Uncalled Capital

d)

(D) Reserve Capital

16.

_________ is transferred to Capital Reserve.

a)

(A) Profit from sale of fixed assets

b)

(B) Premium on issue of shares

c)

(C) Profit on forfeiture of shares

d)

(D) All of the Above

17.

Reserve Capital is also known by:

a)

(A) Capital Reserve

b)

(B) Called up Capital

c)

(C) Subscribed Capital

d)

(D) None of the above

18.

Reserve Capital is:

a)

(A) Subscribed Capital

b)

(B) Capital Reserve

c)

(C) Uncalled Capital

d)

(D) Part of the uncalled capital which may be called only at the time of liquidation of the Company

19.

Which of the following statements is true?

a)

(A) Authorized Capital = Issued Capital

b)

(B) Authorized Capital > Issued Capital

c)

(C) Paid up Capital > Issued Capital

d)

(D) None of the above

20.

In case of private placement of shares, the lock in period is :

a)

(A) 1 Year

b)

(B) 2 Years

c)

(C) 3 Years

d)

(D) None of the above

21.

Shares issued by a company to its employees or directors in consideration of ‘Intellectual Property Rights’ are called :

a)

(A) Right Equity Shares

b)

(B) Private Equity Shares

c)

(C) Sweat Equity Shares

d)

(D) Bonus Equity Shares

22.

A Company may issue the shares :

a)

(A) By Private Placement of Shares

b)

(B) By Public Subscription of Shares

c)

(C) For Consideration other than cash

d)

(D) By All of the Above

23.

Which of the following will define, when appropriation of a certain number of shares is made to an applicant in response to his application?

a)

(A) Share allotment

b)

(B) Share forfeiture

c)

(C) Share trading

d)

(D) Share Purchase

24.

According to Companies Act, Minimum Subscription has been fixed at ……….. of the issued amount.

a)

(A) 25%

b)

(B) 50%

c)

(C) 90%

d)

(D) 100%

25.

Persons who start a company are called ……………….

a)

(A) Shareholders

b)

(B) Directors

c)

(C) Promoters

d)

(D) Auditors

Issue of shares (theory)

Total questions: 25

Worksheet time: 25mins

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