Owned Capital and Retained Earnings Quiz

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12 Questions

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

Shares

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

Face value

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

Shareholder

What document represents the ownership of shares in a company?

Share certificate

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

Face value

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

Demat share

What is another term for owned capital?

Shareholders' capital

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

Retained earnings

When is owned capital returned back to shareholders?

Only at the time of winding up of the company

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

Share capital

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

Authorised capital

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

A unit of stock in a company

Test your knowledge on owned capital and retained earnings in business finance. Learn about the different forms of owned capital and how companies raise capital through shareholders and reinvesting profits.

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