Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
The portion of the authorized share capital given out to the public for subscription is
called-up capital
issued capital
paid-up capital
reserved capital
Correct answer is B
The Issued Capital refers to the number of shares issued by the company to the shareholders.
A business organization can obtain long term financing through
bank overdraft
the sale of shares
credit purchases
bureau de change
Correct answer is B
Share capital is a longterm means of sourcing for business funds. It is the part of the capital of a company that comes from the issue of shares.
A feature common to public and private limited liability companies is that
both can sue and be sued
the minimum number of their shareholders is five
the transfer of their shares is not restricted
their annual accounts are published for public use
Correct answer is A
Common Features of Private and Public Limited Companies
In case of a liquidation of a public limited liability company, those that are first paid are
ordinary shareholders
prefernce shareholders
cumulative preference shareholders
debenture holders
Correct answer is D
Debenture-holders are the subscribers to debentures. Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. In the event of liquidation, they are paid first before any other class of lenders.
The most important business objective is to
improve investments
provide quality products
target consumers for satisfaction
carve a niche for the business
Correct answer is C
No explanation has been provided for this answer.