Question : What is the Minimum Subscription in case of Public Company?
Option 1: 75% of the Issue size
Option 2: 90% of the Issue size
Option 3: 50% of the Issue size
Option 4: None of the Above
Correct Answer: 90% of the Issue size
Solution : The term "minimum subscription" refers to the lowest sum needed by the business to perform its initial duties. The Companies Act stipulates that to prevent businesses from starting with insufficient funds, the company must receive applications for a specific minimum number of shares before moving on with the allotment of shares. The phrase "minimum subscription" refers to this. The minimum subscription amount cannot be less than 90% of the issue's size.
Hence the correct answer is option 2.
Question : When is the dividend received considered an operating activity?
Option 1: In the case of non-finance company
Option 2: In case of finance company
Option 3: Both 1 and 2
Option 4: None of the above
Question : The minimum number of directors in the case of Public Company is-
Option 1: 5
Option 2: 10
Option 3: 8
Option 4: 3
Question : Public subscription of shares include:
Option 1: To issue prospectus
Option 2: To receive Application
Option 3: To make allotment
Option 4: All of the above
Question : Which company prohibits any invitation or acceptance of deposits from a person other than its member, directors, or their relatives?
Option 1: Public Company
Option 2: Private Company
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