Owned Capital and Retained Earnings Quiz

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Questions and Answers

What is the term used to describe the small parts into which the total capital of a company is divided?

  • Fund
  • Bonds
  • Shares (correct)
  • Stocks

What is the term used to describe the value of each share in a company?

  • Market value
  • Face value (correct)
  • Net worth
  • Book value

What is the term used to describe a person who purchases shares of a company?

  • Shareholder (correct)
  • Trader
  • Investor
  • Banker

What document represents the ownership of shares in a company?

<p>Share certificate (C)</p> Signup and view all the answers

What type of value is written on the share certificate and mentioned in the text?

<p>Face value (B)</p> Signup and view all the answers

In which form is a share shown if it is not in physical paper form?

<p>Demat share (D)</p> Signup and view all the answers

What is another term for owned capital?

<p>Shareholders' capital (C)</p> Signup and view all the answers

Which form of owned capital involves reinvestment of profits by the company?

<p>Retained earnings (A)</p> Signup and view all the answers

When is owned capital returned back to shareholders?

<p>Only at the time of winding up of the company (B)</p> Signup and view all the answers

Which term refers to the initial source of capital for a new company?

<p>Share capital (B)</p> Signup and view all the answers

What is the term used for the share capital decided by the promoters of a company?

<p>Authorised capital (B)</p> Signup and view all the answers

According to Section 2 (84) of the Companies Act 2013, what is the definition of a share?

<p>A unit of stock in a company (B)</p> Signup and view all the answers

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