Share Capital Quiz

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Questions and Answers

What is the layman's perception of capital?

The layman's perception of capital is that it is the money invested in a business.

What is the proper use of the word 'capital' in a company limited by shares?

In a company limited by shares, the word 'capital' refers to the share capital i.e., the capital in terms of rupees divided into a specified number of shares.

What are the two types of capital mentioned in the text?

The two types of capital mentioned in the text are fixed capital and circulating capital.

What are the two types of capital mentioned in the text?

<p>The two types of capital mentioned in the text are fixed capital and circulating capital.</p> Signup and view all the answers

What does the phrase 'loan or borrowed capital' refer to?

<p>The phrase 'loan or borrowed capital' refers to money borrowed by the company and secured by issuing debentures.</p> Signup and view all the answers

What does 'capital' mean in the context of a company limited by shares?

<p>'Capital' in the context of a company limited by shares refers to the share capital, which is the capital in terms of rupees divided into a specified number of shares each having a fixed rupee value.</p> Signup and view all the answers

Which one of these is NOT considered as capital in the context of a company limited by shares?

<p>Money used to acquire business premises (D)</p> Signup and view all the answers

What is the proper use of the phrase 'loan or borrowed capital' in the context of a company?

<p>Money borrowed by the company and secured by issuing debentures (D)</p> Signup and view all the answers

How can the share capital of a company limited by shares be divided?

<p>10,000 shares of Rs.10 each (C)</p> Signup and view all the answers

Which one of the following is the proper use of the term 'capital' in a company limited by shares?

<p>Referring to the share capital divided into specified number of shares (B)</p> Signup and view all the answers

What is the difference between fixed capital and circulating capital?

<p>Fixed capital is the money invested in business premises, while circulating capital is the money used to acquire stock-in-trade (C)</p> Signup and view all the answers

What does the term 'loan or borrowed capital' refer to in the context of a company?

<p>Money borrowed by the company and secured by issuing debentures (C)</p> Signup and view all the answers

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