1st Year Principles of Commerce Chapter 6 TestJoint Stock Company-II

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. What has to be bought in order to become shareholder of a company:

   1. Shares

   2. Debentures

   3. Dividend

   4. None of the above

2. The memorandum and articles of company are:

   1. Two names of the same document

   2. Two different documents

   3. They are not documents

   4. Both have the same objective

3. A company formed by the royal order is:

   1. Modarba company

   2. Chartered company

   3. Statutory company

   4. Registered company

4. A company established by the order of parliament or president is called:

   1. Government company

   2. Chartered company

   3. Statutory company

   4. None of the above

5. Modarba company is formed under:

   1. Modarba companies ordinance 1980

   2. Modarba companies ordinance 1984

   3. Modarba companies ordinance 1960

   4. Modarba companies ordinance1970

6. What does a company get from the prospectus:

   1. Capital

   2. Fame

   3. Registration

   4. All the above

7. On which type of shares a company gives the profit on preferential basis:

   1. Ordinary shares

   2. Preference shares

   3. Elementary shares

   4. On all the three

8. The debentureholders of the company are its:

   1. Workers

   2. Managers

   3. Directors

   4. Creditors

9. What does a company issue to get loan from the public:

   1. Shares

   2. Debentures

   3. Dividend

   4. All the above

10. In case of cumulative preference shares, the profit not paid for one year is:

    1. Expired

    2. Not expired

    3. Included in company’s capital

    4. None of the above