Question 7.
payable on the application and allotment of each class of share.
If he is satisfied then he enters the name of the company in his Register.
2. 3.
[IAS 33.58], The calculation of basic and diluted EPS for all periods presented is adjusted retrospectively when the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalisation, bonus issue, or share split, or decreases as a result of a reverse share split. Answer: Question 4. Separation of ownership and control – Management of company is in the hands of elected representatives of shareholders known individually as director and collectively as board of directors. By using this site you agree to our use of cookies.
4. The revision notes help you revise the whole chapter in minutes.
A bank certificate issued in more than one country for shares in a foreign company. You've been redirected from a site that no longer exists The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares.
7. The objective of IAS 33 is to prescribe principles for determining and presenting earnings per share (EPS) amounts to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity.
Commercial paper is not usually backed by any form of collateral, so only firms with high-quality debt ratings will easily find buyers without having to offer a substantial discount (higher cost) for the debt issue.
[IAS 33.65], If EPS is presented, the following disclosures are required: [IAS 33.70]. Presume that the contract will be settled in ordinary shares, and include the resulting potential ordinary shares in diluted EPS if the effect is dilutive.
The calculation of Basic EPS is based on the weighted average number of ordinary shares outstanding during the period, whereas diluted EPS also includes dilutive potential ordinary shares (such as options and convertible instruments) if they meet certain criteria. 1. It is dependent on public response and can’t be relied on if financial needs are urgent. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.
NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. • Terms governing admission, retirement & expulsion of a partner, preparation on of accounts & their auditing. Once entered, they are only
Transferability of shares – Shares of public Co. are easily transferable.
It gives them a relief.
GDR can be issued to anyone but ADRs can be issued only to an American citizen.
• Where goods are unstandardized like artistic jewellery. Answer: Different types of preference shares are discussed below: Question 2.
However, if you sold 3 investors 20% each and kept 40%, you would still have control. Last updated: 11 December 2018.
Equity Shares: Equity shares are the most important source of raising long term capital by a company. Professional management – A company can afford to employ highly qualified experts in different areas of business management. There is a greater degree of operational freedom and flexibility as the funds are generated internally. Answer: John’s investment depends on many factors: Question 2.
(c) 9.
Shortage of capital – It suffers from shortage of capital as it is usually formed by people with limited means. A loss incurring firm has no source called retained earnings. If only equity shares are issued, the company cannot take the advantage of trading on equity. (v) Agreement with proposed managing director. CBSE Class 11 Business Studies Revision Notes CHAPTER : 2 Forms of Business Organisation class 11 Notes Business Studies. Allotment of Shares: Allotment of shares means acceptance of share applied. Non-recourse factoring allows for insurance against bad debts. What are retained profits? Answer: Following financial instruments are used in international financing: Question 6. It Contains information much similar to that of a prospectus. Agreement: It is an outcome of an agreement among partners which may be oral or in writing. Specify the objective of I.D.B.I. Two common classes of shares are 'ordinary' and 'preference' shares. 3. Application to Stock Exchange: It is necessary for a public company to list their shares in the stock exchange therefore the promoters apply in stock exchange to list company shares. 3.
A declaration that all directors have paid in cash in respect of allotment of shares made to them. As soon as a decision is taken to start a business, requirement of funds initiates. The use of retained earnings as opposed to new shares or debentures avoids issue costs. Bank Credit: Borrowings from banks are an important source of finance to companies. Then it is their right to get exceptional returns in good times. 3. Answer: Question 10. But there can be no mortgage shares. Without registration no company can come into existence.
What are the differences between Equity Shares and Preference Shares? A company is not legally entitled to do any business other than that specified in the object clause.
(b) Providing information to the client on credit worthiness of prospective client.
What is the status of debenture holders? The management of many companies believe that retained earnings are funds which do not cost anything, although this is not true.
Differentiate between:
If you need money to grow your business, one way is to issue shares in the business and sell them to investors. Nominal Partner – Such a partner only gives his name and goodwill to the firm. Under the lease agreement, the lessee gets the right to
But it is always beneficial to get the firm registered. The main object of the company 3. Answer: Public deposits.
myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT solutions, NCERT Exemplar solutions, quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. American Depository Receipts (ADRs): The depository receipts issued by the company in the USA are called American Depository Receipts. (d) Internal Sources and External Sources
These are explained below: Explain.
Answer: Different types of debentures that a company can issue are described below: Question 7. Though he invested money, shares profit & Loss and unlimited liability.