6. Which of the following are not issued by the companies according to the?

Question

6. Which of the following are not issued by the companies according to the

Companies ordinance 1984?

a) Ordinary shares

b) Fractional shares

c) Bonus shares

d) Right shares

7. Which one of the following is used to increase the share capital of the company

without the adverse affect on the working capital if the company has the surplus

profit and reserves?

a) Cash dividend

b) Cash bonus

c) Pay of any share capital that is in excess of its needs

d) Bonus shares

8. ABC Co. Ltd. has a paid up capital of Rs. 800,000 divided into 8,000 shares of

Rs.100 each. Two bonus shares are issued for every four shares held in the

company. How many bonus shares will be issued by the company?

a) 2,000 bonus shares

b) 8,000 bonus shares

c) 16,000 bonus shares

d) 4,000 bonus shares

9. XYZ Company has paid up capital of 20,000 shares of Rs. 100 each. The

company offers to existing shareholders the right to buy 3 shares of Rs. 100 each

at Rs. 125 for every 5 shares held. How many right shares will be issued by the

company?

a) 10,000 shares

b) 15,000 shares

c) 25,000 shares

d) 12,000 shares

10. What will be the effect on earning per share in case of issuance of new right

shares?

a) Reverse effect

b) Major positive effect

c) Minor positive effect

d) No effect

Answer 1

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