Equity Capital

Q.

Who are called the owners of the company?

1. Depositors

2. Preference shareholders

3. Creditors

4. Equity shareholders

Q.

List sources of raising long term and short term finance.

Q. Equity shareholders are the owners of the company. The capital raised by the issue of such shares is known as .

1. owner's funds
2. creditors
3. depositors
4. equity share

Q.

Shareholder wealth in a firm is represented by ______________. (a) The number of people employed in the firm (b) The book value of the firms assets less the book value of its liabilities (c) The amount of salary paid to its employees d) The market price per share of the firms common stock

Q.

Who are equity shareholders?

Q.

Equity shareholders are called:

1. Owners of the company

2. Partners of the company

3. Executives of the company

4. Guardian of the company

Q.

The capital of a company is divided into number of parts each one of which are called

(a) Dividend

(b) Profit

(c) Interest

(d) Share

Q.

Why are promoters neither the agents nor the trustees of a company?

Q. The capital, which is raised in exchange for the share of ownership in the company, is called .

1. equity capital
2. share capital
3. debentures
4. capital

Q.

Which concept is involved in the sale of equity shares to the private and the public sector?

Q.

What are the different types of equity share capital?

Q.

______ is a prerequisite to creation of a company.

1. Issuing preference shares

2. Issuing equity shares

3. All of the above

4. Retaining earnings

Q.

What Is Meant by a ‘share’ ? Give Any Two Differences Between ‘preference Shares’ and ‘equity Shares’.

Q.

What is the difference between equity share and preference share?

Q.

The directors of a famous I.T company have decided to set up a new firm in Pune, with an estimated cost of rupees of eight crores. Which of the following sources of finance would be most suitable?

1. Commercial papers, Debentures, Equity shares

2. Equity shares, Preference shares, Debentures

3. Public deposits, Short-term loans from commercial banks, Trade credit

4. Trade credit, Factoring, Banks

Q.

Whats the difference between equity and shares?

Q. Minimum number of members to form a public company is ________.

1. 7
2. 12
3. 21
4. 5

Q.

How much did Organic Corner raise as equity share capital?

1. 8 lakhs

2. 6 lakhs

3. 4 lakhs

4. 10 lakhs

Q. To which of these persons, sweat equity shares can be issued by a company?

1. Employees
2. Directors
3. Providers of know-how or intellectual property rights or value addition
4. All the above

Q.

Equity shareholders are ___owners.

Q.

Capital obtained by issuing shares is known as___capital.

Q. ___fund are provided by the shareholders of the company.

Q. Identify the point of merit of equity shares?

1. Both (a) and (b)

2. None of the above

3. Credit worthiness

4. No compulsion to pay dividend

Q. Name the company which raises it's capital by issuing shares to public.

1. Joint stock company
   
2. Private company
   
3. Public company
   
4. Government organisation
   

Q.

Shareholder wealth in a firm is represented by___________. A.) the number of people employed in the firm B) the book value of the firms assets less the book value of its liabilities C) the amount of salary paid to its employees D) the market price per share of the firms common stock.

Q. Select the correct option given below:

1. once in a life time
   
2. twice in a life time
   
3. every year
   
4. none of the above
   

Q.

Is share capital equity?