Shares and Debentures

21. When a Company make an offer or invites the Public in general to subscribe its shares, it is known as ___________?1. Issues of share at per
2. Initial Public Offer (IPO)
3. Private placement of shares
4. Issues of shares of premium
5. None of The Above

Option “2” is correct.
When a Company make an offer or invites the Public in general to subscribe its shares, it is known as Initial Public Offer (IPO).
22. Authorized shares Capital is also Known As ________.1. Paid up capital
2. Issued Capital
3. Nominal Capital
4. Called up Capital
5. Reserve Capital

Option “3” is correct.
Authorized shares Capital is also Known as Nominal Capital.
23. Which of the following represent the excess of issued price over the nominal value of shares?1. Premium of issues of share
2. Discount on issues of share
3. Shared Capital
4. Profit of Company
5. Secondary of issues of share

Option “1” is correct.
When a company issued its share at a price which is more than the actual face value, it is known as shares issued at premium.
24. Discount on issue of shares is a?1. Revenue loss
2. Capital loss
3. Capital profit
4. Revenue profit
5. None of these

Option “2” is correct.
Discount on issue of shares is a Capital loss.
25. Which of the following statement is false?1. Company is not affected by death of its member
2. A company can buy its own share
3. Company is managed by all the member
4. A Company is legal entity distinct from its owner
5. only A and B

Option “3” is correct.
‘Company is managed by all the member’ is not correct because it is not mandatory for all the members to run the company.
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