Types of Capital and Finance Quiz

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What is the primary focus of Public Finance (Capital)?

Providing funds for profit-seeking business organizations
Investing in fixed assets for production facilities
Supporting individual investors in managing their finances
Dealing with government institutions' fund requirements, receipts, and disbursements (correct)

Which category of capital is required for the purchase of raw materials and day-to-day expenses?

Medium Term Capital
Short Term Capital (correct)
Fixed Capital
Long Term Capital

What are examples of fixed assets that fall under Fixed Capital?

Bank Credit and Customer Advances
Debentures and bank loans
Plant, machinery, land, and building (correct)
Trade Credit and Commercial Papers

Which source falls under Short Term Source of finance according to period?

Trade Credit (D) Signup and view all the answers

What does Private Finance (Capital) primarily deal with?

Managing funds for an individual, profit-seeking business organizations (C) Signup and view all the answers

What is the purpose of Working Capital?

For short-term purposes such as purchase of raw material and day-to-day expenses (D) Signup and view all the answers

What is the unit of ownership of a company usually termed as?

Share (A) Signup and view all the answers

Who are the persons who own the share known as?

Stockholders (A) Signup and view all the answers

What does common stock or shares represent?

The final residual interest in a company’s assets (C) Signup and view all the answers

What measure is used to identify the company’s worth in terms of market value?

Share Price (B) Signup and view all the answers

What type of stocks/shares represent the greatest level of risk to an investor?

Common Stocks/Shares (B) Signup and view all the answers

What do corporations issue stocks/shares for?

To raise money for capital and operating expenses (A) Signup and view all the answers

What do preferred stocks/shares represent?

A fixed interest rate (A) Signup and view all the answers

What is the distribution of shares in a company an indication of?

Ownership distribution (A) Signup and view all the answers

What are common stocks/shares also referred to as?

'Ordinary shares' (C) Signup and view all the answers

'The share value of a company or the investment is based on what?'

'The price at which a share is sold in the market' (A) Signup and view all the answers

According to the text, how many members should the board of directors have in the case of a closed joint stock company?

Three members (A) Signup and view all the answers

What is the maximum number of members permitted for the board of directors in either a public joint stock company or a closed joint stock company according to the text?

Eleven members (B) Signup and view all the answers

In which type of company should the board of directors have an uneven number of members according to the text?

Both public and closed joint stock companies (C) Signup and view all the answers

What is the minimum number of members required for the board of directors in the case of a public joint stock company according to the text?

Five members (C) Signup and view all the answers

How are the members of the board of directors selected according to the text?

Elected from among the shareholders or others (C) Signup and view all the answers

What is the requirement for the number of board members' selection in terms of gender diversity according to the text?

It should not be specified by gender (B) Signup and view all the answers

What is the term of office for a member of the board of directors?

3 years from the date of convening the general meeting (B) Signup and view all the answers

Who is responsible for implementing the resolutions of the board of directors?

The chairman of the board (A) Signup and view all the answers

How many Joint-stock Companies can a person be a Chairman of?

3 (A) Signup and view all the answers

What is the maximum number of Joint-stock Companies a person can be a member of the Board of Directors?

5 (D) Signup and view all the answers

Who is ineligible to become a director of a company?

A person convicted by criminal offences inside and outside the country (A) Signup and view all the answers

What is the role of the deputy chairman in the board of directors?

To act for the chairman in case of absence (C) Signup and view all the answers

What should the financial statements disclose according to the text?

The privileges obtained by the directors (C) Signup and view all the answers

What does the term 'board of directors' refer to?

The elected members managing company operations (B) Signup and view all the answers

What does a person need to hold to be eligible for chairmanship in Joint-stock Companies?

Clean criminal record inside and outside the country (C) Signup and view all the answers

What is an elected member of the board responsible for immediately after their election?

Election from its members a chairman and a deputy thereof, and appointing a secretary for the board (B) Signup and view all the answers

What does an individual need to be disqualified as a potential director within a company?

Criminal convictions inside or outside their country (D) Signup and view all the answers

What is one limit on how many companies an individual can be involved with as part of their responsibilities as an official?

No involvement with more than 5 Joint-stock Companies (C) Signup and view all the answers

Public Finance (Capital)

Deals with government institutions' fund requirements, receipts, and disbursements.

Short Term Capital

Capital required for raw materials and daily expenses.