Question

7) Subscribed capital can be
a) More than called up capital
c) More than authorized capital
b) More than issued capital
d) Equal to reserve capital​

Answer 1

Answer:

1. The subscribed capital of a company is:

(a) never more than the issued capital

(b) never less than the issued capital

(c) always equal to the issued capital

(d) prescribed percentage of the issued capital

A

2. Part of the capital for which application have been received from the public and shares allotted to them

(a) nominal capital

(b) issued capital

(c) Subscribed capital

(d) Called up capital

C

3. Shares which are issued by a company to its directors or employees at a discount or for a consideration:

(a) Equity Shares

(b) Preference Shares

(c) Sweat Equity Share

(d) Redeemable preference shares

C

4. A public company may issue securities-

(a) To public through prospectus, public offer, initial and further offer:

(b) Through private placement:

(c) Through right issue or bonus issue .

(d) All of the above.

ANSWER- D

5. The amount of capital that a company can issue at par value is called

A. Authorised Capital

B. Share Premium

C. Issued Capital

D. Fixed Capital

Ans. A

6. 2. What is the nominal value of share?

A. The Book value of share

B. Fixed amount that represent the notional value of the share’s worth

C. The current market value of share

D. The maximum value that can be paid for share.

Ans A

7. 3. The allotment of shares refers to the process whereby a person’s name entered into the registered of the members.

A True

B False

Ans A

8. The amount to be collected on the application share should be …………

A. Not less that 5% of nominal value of shares

B. Not more that 5% of nominal value of shares

C. More than 5% of called up price of share

D. Not more that 5% of issued price of share

Ans A

9. The dividend of preference share capital paid

A. Whenever there are profit

B. When there is loss

C. even if there are no Profits

D. After dividend is paid to Equity shares

Ans A

10. Are the terms initials public offer /further public offer applicable to an issue of securities by a private company .

a. yes

b. no

Ans:- b

Explanation:

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Answer 2

Answer:

subscribed capital is increased when members have subscribed to share of the company