Shares 6

Equity shares cannot be issued for the purpose of

• Cash receipts

• Purchase of assets

• Redemption of debentures

• Distribution of dividend

A company may issue

• Equity shares

• Preference shares

• Equity and preference both shares

• None of the above

A company cannot issue

• Redeemable equity shares

• Redeemable preference shares

• Redeemable debentures

• Fully convertible debentures

To whom dividend is given at a fixed rate in a company

• To equity shareholders

• To preference shareholders

• To debentureholders

• To promoters

Preference shareholders have

• Preferential right as to dividend only

• Preferential right in the management

• Preferential write as to repayment of capital at the time of liquidation of the company

• Preferential right as to dividend and repayment of capital at the time of liquidation of a company

The shares on which there is no any pre fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called

• Equity share

• Non cumulative preference shares

• Non convertible preference share

• Non guaranteed preference share

Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called

• Cumulative preference shares

• Non commulative preference shares

• Convertible preference shares

• Non convertible preference shares

A preference share which does not carry the right of sharing in surplus profits is called

• Non cumulative preference share

• Non participating preference share

• Irredeemable preference share

• Non convertible preference share

Which share holders have a right to receive the arrears of dividend from future profits

• Redeemable preference shares

• Participating preference shares

• Cumulative preference shares

• Non cumulative preference shares

Which shareholders are returned their capital after some specified time

• Redeemable preference shares

• Irredeemable preference shares

• Cumulative preference shares

• Participating preference shares