Equity Capital

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.

How much did Organic Corner raise as equity share capital?

1. 8 lakhs

2. 6 lakhs

3. 4 lakhs

4. 10 lakhs

Q.

Who are called the owners of the company?

1. Depositors

2. Preference shareholders

3. Creditors

4. Equity shareholders

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. ___fund are provided by the shareholders of the company.

Q.

Equity shareholders are ___owners.

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.

Capital obtained by issuing shares is known as___capital.

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. 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