Sources of Owned Capital in Business Finance

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Questions and Answers

What is the value of each part or unit of share known as?

  • Face value (correct)
  • Ownership value
  • Distinctive value
  • Evidence of title value

What document serves as evidence of ownership of shares?

  • Issue statement
  • Balance sheet
  • Share certificate (correct)
  • Certificate of registration

What is the term used to describe the number that identifies each share for identification purposes?

  • Distinctive Number (correct)
  • Corporate ID
  • Unique Identifier
  • Ownership Number

What is the price at which a company sells its shares known as?

<p>Issue price (B)</p> Signup and view all the answers

What is the term used for the smallest unit in the total share capital of a company?

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

What term refers to the owner of a share in a company?

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

What is the term used to describe the capital raised by a company with the help of owners (shareholders)?

<p>Owned capital (A)</p> Signup and view all the answers

Which form of owned capital involves reinvesting profits back into the business?

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

What is another term for owned capital based on profit reinvestment within the business?

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

Why is owned capital considered permanent?

<p>It is returned only at winding up of the company (C)</p> Signup and view all the answers

In what document is the amount of share capital required by a company specified?

<p>Memorandum of Association (D)</p> Signup and view all the answers

What is defined as a share in the share capital of a company according to the Companies Act 2013?

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

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