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</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</p> Signup and view all the answers

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

    <p>Shareholder</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</p> Signup and view all the answers

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

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

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

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

    Why is owned capital considered permanent?

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

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