34 Questions
What is the primary focus of Public Finance (Capital)?
Dealing with government institutions' fund requirements, receipts, and disbursements
Which category of capital is required for the purchase of raw materials and day-to-day expenses?
Short Term Capital
What are examples of fixed assets that fall under Fixed Capital?
Plant, machinery, land, and building
Which source falls under Short Term Source of finance according to period?
Trade Credit
What does Private Finance (Capital) primarily deal with?
Managing funds for an individual, profit-seeking business organizations
What is the purpose of Working Capital?
For short-term purposes such as purchase of raw material and day-to-day expenses
What is the unit of ownership of a company usually termed as?
Share
Who are the persons who own the share known as?
Stockholders
What does common stock or shares represent?
The final residual interest in a company’s assets
What measure is used to identify the company’s worth in terms of market value?
Share Price
What type of stocks/shares represent the greatest level of risk to an investor?
Common Stocks/Shares
What do corporations issue stocks/shares for?
To raise money for capital and operating expenses
What do preferred stocks/shares represent?
A fixed interest rate
What is the distribution of shares in a company an indication of?
Ownership distribution
What are common stocks/shares also referred to as?
'Ordinary shares'
'The share value of a company or the investment is based on what?'
'The price at which a share is sold in the market'
According to the text, how many members should the board of directors have in the case of a closed joint stock company?
Three members
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
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
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
How are the members of the board of directors selected according to the text?
Elected from among the shareholders or others
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
What is the term of office for a member of the board of directors?
3 years from the date of convening the general meeting
Who is responsible for implementing the resolutions of the board of directors?
The chairman of the board
How many Joint-stock Companies can a person be a Chairman of?
3
What is the maximum number of Joint-stock Companies a person can be a member of the Board of Directors?
5
Who is ineligible to become a director of a company?
A person convicted by criminal offences inside and outside the country
What is the role of the deputy chairman in the board of directors?
To act for the chairman in case of absence
What should the financial statements disclose according to the text?
The privileges obtained by the directors
What does the term 'board of directors' refer to?
The elected members managing company operations
What does a person need to hold to be eligible for chairmanship in Joint-stock Companies?
Clean criminal record inside and outside the country
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
What does an individual need to be disqualified as a potential director within a company?
Criminal convictions inside or outside their country
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
Test your knowledge of classifications of capital, sources of finance, types of stocks/shares, bonds payable, debentures, securities, and bonds with this quiz. Practice questions included!
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