Podcast
Questions and Answers
What is the term used to describe the person involved in forming a company?
What is the term used to describe the person involved in forming a company?
- Director
- Incorporator
- Registrar
- Promotee (correct)
How many persons are required to form an incorporated public company?
How many persons are required to form an incorporated public company?
- 5
- 7 (correct)
- 10
- 8
When can a private company commence its business after incorporation?
When can a private company commence its business after incorporation?
- After 6 months
- After filing annual financial statements
- After obtaining a Certificate of Commencement of Business
- Immediately (correct)
Which document is required to be filed to get the Certificate of Incorporation from the Registrar?
Which document is required to be filed to get the Certificate of Incorporation from the Registrar?
What is the next step for a public company after obtaining the Certificate of Incorporation?
What is the next step for a public company after obtaining the Certificate of Incorporation?
What is the minimum number of persons required to form an incorporated private company?
What is the minimum number of persons required to form an incorporated private company?
What are the three important stages in the formation of a company?
What are the three important stages in the formation of a company?
How is share capital divided into different divisions?
How is share capital divided into different divisions?
What is the par value of a share known as?
What is the par value of a share known as?
How are shares primarily classified?
How are shares primarily classified?
What are the three types of responses for the offer of issue of shares by a company?
What are the three types of responses for the offer of issue of shares by a company?
What condition must be met before a public company can commence business?
What condition must be met before a public company can commence business?
When does a company treat the money received from shareholders as 'calls in advance'?
When does a company treat the money received from shareholders as 'calls in advance'?
What is the term used when a company receives applications for fewer shares than offered to the public?
What is the term used when a company receives applications for fewer shares than offered to the public?
If a company issues shares at a price higher than its face value, what is this premium amount called?
If a company issues shares at a price higher than its face value, what is this premium amount called?
What is the term used for the remaining amount that a shareholder must pay on the shares allotted, after the initial payment?
What is the term used for the remaining amount that a shareholder must pay on the shares allotted, after the initial payment?
If a company receives applications for more shares than offered to the public, what is this situation called?
If a company receives applications for more shares than offered to the public, what is this situation called?
What is the term used when a company issues shares at a price lower than its face value?
What is the term used when a company issues shares at a price lower than its face value?
What entry is made when a company issues shares for cash at a premium?
What entry is made when a company issues shares for cash at a premium?
If a company issues 20,000 convertible preference shares of Rs. 10 par value each, convertible into equity shares at a ratio of 1:2 after 5 years, how many equity shares will be created upon conversion?
If a company issues 20,000 convertible preference shares of Rs. 10 par value each, convertible into equity shares at a ratio of 1:2 after 5 years, how many equity shares will be created upon conversion?
What is the entry made when a company issues shares at a discount?
What is the entry made when a company issues shares at a discount?
For subsequent calls after the first call money receipt, what type of entries will be passed?
For subsequent calls after the first call money receipt, what type of entries will be passed?
In the case of winding up of a company, which of the following is the correct order of payment?
In the case of winding up of a company, which of the following is the correct order of payment?
When should a company get approval to issue shares at a discount?
When should a company get approval to issue shares at a discount?
What is the term used to refer to the nominal or face value of a share?
What is the term used to refer to the nominal or face value of a share?
If a company has issued cumulative preference shares and has unpaid dividends, how are these unpaid dividends treated?
If a company has issued cumulative preference shares and has unpaid dividends, how are these unpaid dividends treated?
What is the treatment of proceeds when a company issues no-par stock?
What is the treatment of proceeds when a company issues no-par stock?
When issuing both equity and preference shares, what must be used in all circumstances?
When issuing both equity and preference shares, what must be used in all circumstances?
Which type of shares can be converted into equity shares according to the terms of issue?
Which type of shares can be converted into equity shares according to the terms of issue?
What is the term used to refer to the fixed amount into which the share capital of a company is divided?
What is the term used to refer to the fixed amount into which the share capital of a company is divided?
