1. A company has ……………
   1. Separate Legal Entity
   2. Perpetual Existence
   3. Limited Liability
   4. All of the Above
2. Shareholders are :
   1. Customers of the Company
   2. Owners of the Company
   3. Creditors of the Company
   4. None of these
3. Who are the real owners of a company?
   1. Government
   2. Board of Directors
   3. Equity shareholders
   4. Debenture holders
4. A Company is created by :
   1. Special act of the Parliament
   2. Companies Act
   3. Investors
   4. Members
5. An artificial person created by Law is called :
   1. Sole Tradership
   2. Partnership Firm
   3. Company
   4. All of the Above
6. The liability of members in a Company is :
   1. Limited
   2. Unlimited
   3. Stable
   4. Fluctuating
7. Liability of a shareholder is limited to ………………… of the shares allotted to him :
   1. Paid up Value
   2. Called up value
   3. Face value
   4. Reserve Price
8. Maximum number of members in a private company is :
   1. 7
   2. 200
   3. 20
   4. No Limit
9. Capital of a Company is divided in units which is called :
   1. Debenture
   2. Share
   3. Stock
   4. Bond
10. Shareholders receive from the company :
    1. Interest
    2. Commission
    3. Profit
    4. Dividend

MCQs Questions of Class – 12 Accountancy Chapter 7 – Issue of Shares

Answer Key

1. (d)  2. (b)   3. (c)     4. (b)   5. (c)    6. (a)    7. (c)    8. (b)    9. (b)   10.  (d)