Chapter 7 Multiple choice questions

Chapter 7 Multiple choice questions

Capital and capital maintenance

Quiz Content

not completed
What is a share's 'nominal value?'

not completed
What is a company's 'issued share capital?'

not completed
Ethos plc commences business and issues one million shares with a nominal value of £3 each. The company allows its allottees to pay £1.25 on allotment and the remainder at a later date. All the allottees chose to do this and all the shares are sold. What is Ethos plc's paid-up share capital?

not completed
The allotment of shares refers to the process whereby a person who has purchased shares has their name entered on the register of members. True or false?

not completed
Regarding the company's power to allot shares, which ONE of the following statements is NOT true?

not completed
Which ONE of the following statements regarding pre-emption rights is NOT true?

not completed
In order to reduce capital, a public company must pass a special resolution and obtain court approval. True or false?

not completed
There are limitations on the issuing and redemption of redeemable shares. Which ONE of the following is NOT an actual limitation?

not completed
Which ONE of the following statements is true?

not completed
Regarding the distribution of profits, which ONE of the following statements is NOT true?

not completed
There are several differences between fixed charges and floating charges. Bearing this in mind, which ONE of the following statements is NOT true?

not completed
Which is the effect of the failure to register a charge with the registrar of companies?

Back to top