Banking Awareness Quiz for Bank Exams 2021- 4th May

Q1. Equity share holders are:
(a)Creditors
(b) Customers of company
(c) Owners
(d)All the above
(e)None of the above

Q2.The capital of a company is divided into a number of equal parts, each part is called
(a)Debenture
(b)Share
(c)General Reserve
(d)All the above
(e)None of these

Q3. Company receives more application than shares issued in?
(a)Nominal subscription
(b)Over subscription
(c)Routine subscription
(d)Under subscription
(e)None of these

Q4. What is the minimum required paid up capital of a public company?
(a)15 Lakhs
(b)20 Lakhs
(c)10Lakhs
(d)5 Lakhs
(e)25Lakhs

Q5. Ordinary shares are also called?
(a) Equity shares
(b) Founders shares
(c) Deferred shares
(d) Preference shares
(e)None of these

Q6.The shares of a public limited company generally?
(a)Not transferable
(b)Freely transferable
(c)Restricted freely transferable
(d)Restricted not transferable
(e)None of these

Q7. When a Company makes an offer or invites the Public in general to subscribe its shares, it is known as ___________?
(a)Basic Offering
(b) Private placement Offering
(c) Initial Public Offering (IPO)
(d)Issues of shares of premium
(e)None of these

Q8. Authorized shares Capital is also known as ________
(a) Nominal Capital
(b)Issued Capital
(c) Paid up Capital
(d)Called up Capital
(e)None of these

Q9.Discount on issue of shares is a?
(a) Revenue profit
(b) Capital profit
(c) Capital loss
(d) Revenue loss
(e)None of these

Q10.Which of the following statement is false?
(a)A company can buy its own share
(b)Company is not affected by death of its member
(c) A Company is legal entity distinct from its owner
(d) Company is managed by all the member
(e)None of these

Practice More Questions of Banking Awareness for Competitive Exams:

Solutions

S1.Ans(c)
Sol. Equity shares represent the ownership of a company, hence the capital raised by issue of such shares is referred to as ownership capital and shareholders are called owners of the company.

S2.Ans(b)
Sol. The capital of a company is divided into a number of equal parts, each part is called as share.

S3.Ans(b)
Sol.Company receives more application than shares issued in over subscription.

S4.Ans(d)
Sol. A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such a higher amount as prescribed under the act.

S5.Ans(a)
Sol. Ordinary shares are also called Equity shares.

S6.Ans(b)
Sol. The shares of a public limited company generally are freely transferable.

S7.Ans(c)
Sol. When a Company makes an offer or invites the Public in general to subscribe its shares, it is known as Initial Public Offering (IPO).

S8.Ans(a)
Sol. Authorized shares Capital is also known as Nominal Capital.

S9.Ans(c)
Sol. Discount on issue of shares is a Capital loss.

S10.Ans(d)
Sol.‘Company is managed by all the member’ is not correct because it is not mandatory for all the members to run the company.