Q1: 1. What is the primary purpose of issuing share capital?

• A) A. To raise funds for business expansion
• B) B. To pay off existing debts
• C) C. To increase shareholder salaries
• D) D. To reduce company expenses

Q2: 2. Which of the following is NOT a type of share capital?

• A) A. Ordinary shares
• B) B. Preference shares
• C) C. Debentures
• D) D. Equity shares

Q3: 3. What is the minimum face value of a share as per regulatory requirements?

• A) A. Rs. 1
• B) B. Rs. 10
• C) C. Rs. 100
• D) D. Rs. 500

Q4: 4. Which financial statement reflects the share capital of a company?

• A) A. Income statement
• B) B. Balance sheet
• C) C. Cash flow statement
• D) D. Statement of changes in equity

Q5: 5. What does the term "authorized share capital" refer to?

• A) A. The total number of shares issued by a company
• B) B. The amount of share capital a company is legally allowed to issue
• C) C. The market value of a company's shares
• D) D. The profit earned from share investments

Q6: 7. What is the term used to describe the process of converting securities or other assets into shares?

• A) A. Capitalization
• B) B. Recapitalization
• C) C. Liquidation
• D) D. Amortization

Q7: 8. A company issues 10,000 shares at Rs. 50 per share. What is the total share capital raised?

• A) A. Rs. 5,000
• B) B. Rs. 50,000
• C) C. Rs. 500,000
• D) D. Rs. 5,000,000

Q8: 9. Which type of shares typically carry a fixed rate of dividend?

• A) A. Ordinary shares
• B) B. Preference shares
• C) C. Equity shares
• D) D. Bonus shares

Q9: 10. What happens to share capital in the event of a share buyback?

• A) A. It increases
• B) B. It decreases
• C) C. It remains the same
• D) D. It becomes null and void

Q10: 11. A shareholder sells 500 shares of a company at a price of Rs. 100 per share. How much money does the shareholder receive?

• A) A. Rs. 50,000
• B) B. Rs. 5,000
• C) C. Rs. 10,000
• D) D. Rs. 500

Q11: 12. Which type of share capital represents ownership in a company?

• A) A. Preference shares
• B) B. Debentures
• C) C. Equity shares
• D) D. Bonus shares

Q12: 13. What is the term used for the process of dividing the share capital of a company into smaller units?

• A) A. Capitalization
• B) B. Dividend declaration
• C) C. Stock split
• D) D. Bonus issue

Q13: 14. When a company issues new shares to existing shareholders in proportion to their current shareholding, it is known as a

• A) A. Rights issue
• B) B. Bonus issue
• C) C. Private placement
• D) D. Public issue

Q14: 16. What is the term used for the total nominal value of shares that have been issued by a company?

• A) A. Issued share capital
• B) B. Authorized share capital
• C) C. Paid-up share capital
• D) D. Share premium

Q15: 17. When a company repurchases its own shares from the market, it is known as

• A) A. Share dilution
• B) B. Share buyback
• C) C. Share allotment
• D) D. Share redemption

Q16: 18. Which financial metric is calculated by dividing a company's share price by its earnings per share (EPS)?

• A) A. Price/Earnings ratio
• B) B. Dividend yield
• C) C. Return on equity
• D) D. Earnings before interest and taxes (EBIT)

Q17: 19. A company issues 1,000 shares at a premium of Rs. 20 per share. What is the total amount received by the company from the share issue?

• A) A. Rs. 10,000
• B) B. Rs. 20,000
• C) C. Rs. 30,000
• D) D. Rs. 40,000

Q18: 20. Which type of share capital is typically non-voting in nature?

• A) A. Ordinary shares
• B) B. Preference shares
• C) C. Equity shares
• D) D. Bonus shares

Q19: 21. What is the maximum number of shareholders allowed in a private company as per regulatory requirements?

• A) A. 50
• B) B. 100
• C) C. 200
• D) D. Unlimited

Q20: 22. A company decides to issue new shares to a select group of investors without making a public offering. This is known as

• A) A. Rights issue
• B) B. Bonus issue
• C) C. Private placement
• D) D. Public issue

Q21: 23. Which type of share capital represents a fixed claim on a company's assets and profits?

• A) A. Ordinary shares
• B) B. Preference shares
• C) C. Equity shares
• D) D. Bonus shares

Q22: 24. What is the term used to describe the process of converting profits or reserves into share capital?

• A) A. Capitalization
• B) B. Recapitalization
• C) C. Liquidation
• D) D. Amortization

Q23: 25. A company issues 5,000 equity shares at a price of Rs. 80 per share. What is the total share capital raised?

• A) A. Rs. 4,000
• B) B. Rs. 40,000
• C) C. Rs. 400,000
• D) D. Rs. 4,000,000