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Types of capital - SS2 Commerce Past Questions and Answers - page 1

1

What does authorized capital represent?

 

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A

The maximum amount of capital a company can issue

 

B

The portion of issued capital that shareholders have paid

 

C

The residual value of a company's assets

 

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2

Which type of capital represents the actual value of shares issued to shareholders?

 

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A

Authorized capital

 

B

Issued capital

 

C

Called-up capital

 

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3

What is called-up capital?

 

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A

The maximum amount of capital a company can issue

 

B

 The portion of issued capital that shareholders have paid

C

The portion of issued capital that shareholders have paid

 

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4

What does capital owned (shareholders' equity) represent?

 

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A

The maximum amount of capital a company can issue

 

B

The portion of issued capital that shareholders have paid

 

C

The net value of a company's assets belonging to shareholders

 

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5

Define authorized capital in simple terms.

 

 

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6

What does capital owned (shareholders' equity) include?

 

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