Tag: AQA

The amount of the issued share capital of a company is. . . ?

Select ONE answer:

1. always equal to the amount of its authorised share capital.
2. equal to the amount of its issued preference share capital.
3. equal to the reserves of the company.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct – The amount of the issued share capital of a company may be less than, or equal to, the company’s authorised share capital.
2. Not correct – The total issued share capital of a company cannot equal its issued preference share capital, because every company must have at least two ordinary shares.
3. Not correct – There is no relationship between the amount of the issued share capital of a company and its reserves.
4. Correct – The issued share capital of a company is the total amount of share capital, both ordinary share capital and preference share capital, which it has actually sold to shareholders.

 

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A company‘s authorised share capital is. . . ?

Select ONE answer:

1. the amount of share capital the company has issued.
2. the amount of share capital which the directors of the company intend to issue.
3. the amount of share capital stated in the company‘s original Memorandum of Association.
4. the maximum amount of share capital which the company currently has the power to issue.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – A company’s authorised share capital can be increased, if the shareholders so approve, by vote.

 

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The right to transfer shares in a private company . . . ?

Select ONE answer:

1. may be restricted.
2. must be restricted.
3. cannot he restricted.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – This is the essence of a private company – the Companies Acts require that shares in a private company cannot be freely bought and sold by the public.
3. Not correct
4. Not correct

 

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A public limited company registered in the United Kingdom must have an authorised share capital of at least . . .?

Select ONE answer:

1. £7,500
2. £30,000
3. £50,000
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Per the Companies Acts
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

A PLC is . . .?

Select ONE answer:

1. a company whose shares are ‘listed’ on a recognised Stock Exchange.
2. a public limited company.
3. a private limited company.
4. a public sector body.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Although shares in most PLCs are traded on a recognised Stock Exchange they do not have to be in order for the company to be a PLC.
3. Not correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.