To which of the following does the term “subscribers” refer?
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1 .A promoter is forming a company and delivering documents to the Registrar of Companies.Which of the following would be included in the Memorandum of Association of thecompany?
A The objects clause B A statement of initial capital C Subscribers’ declaration
2 .The authorised share capital of Wye Ltd is £250,000 divided into 250,000 ordinary £1 shares.The market value of each share is £2. Angela and Brian are the only shareholders. Each hastaken 50,000 shares and each has, so far, paid £10,000.What is the issued share capital and paid-up share capital?
A Issued £250,000;Paid-up £100,000 B Issued £200,000;Paid-up £20,000 C Issued £100,000;Paid-up £20,000 D Issued £50,000;Paid-up £10,000
3 .A company cannot generally do which of the following?
A Invest in other companies unless authorised by the article of incorporation B Be funded by loans C Hold treasury shares
4 .Mr Wally buys a share in a company on 1 January.To whom does Mr Wally become contractually bound?
A The company only B The members as on 1 January C The company and the present members D The company and the members as on 1 January
5 .Which of the following statements is correct in relation to company shares?(1) All ordinary shares must be voting shares.(2) Preference shares never entitle the holder to a vote.(3) All preference shares carry cumulative rights.
A 1 only B 2 only C 3 only D None of the above
7 .Which of the following describes a person who invests in both the shares and debenturesof a company?
A A member B A creditor C A member and a creditor
8 .Which of the following statements concerning shares in a company are correct?(1) Shares are personal property of a shareholder.(2) A shareholder may hold a fraction of a share.(3) Two or more people may hold the same share.
A 1 and 2 only B 1 and 3 only C 2 and 3 only D All of the above
9 .What does issued share capital represent?
A The extent of the company’s funding by its members B The market value of the company’s net assets C The amount of cash injected by the members
10 .What type of share may give the right to cumulative dividends?
A Ordinary share B Preference share C Treasury share
