Question : Which shares are awarded by a Company to its directors or workers in recognition of their commitment and hard work towards the company?
Option 1: Bonus Shares
Option 2: Sweat Equity Shares
Option 3: Prefrence Shares
Option 4: None of the above
Correct Answer: Sweat Equity Shares
Solution : Sweat Equity Shares are defined as equity shares that a corporation issues to its directors or workers at a discount or in exchange for something other than cash in exchange for their expertise or the provision of rights that resemble intellectual property rights or value (Section 2(88) of the Companies Act).
Hence the Correct Answer is option 2.
Question : Shares issued by a company to its employees or directors in consideration of 'Intellectual Property Rights'(IPR) are called ........
Option 1: Right equity Shares
Option 2: Private Equity shares
Option 3: Sweat Equity Share
Option 4: Bonus Equity shares
Question : A company may issue __________.
Option 1: Equity shares
Option 2: Preference shares
Option 3: Equity and preference share
Question : Which type of shares can be issued at a discount?
Option 1: Preference Shares
Option 2: Equity Shares
Option 3: Sweat Equity Shares
Option 4: All of the Above
Question : Preference shares provide the right to:
Option 1: Vote in company meetings
Option 2: Receive a fixed dividend before equity shareholders
Option 3: Convert into equity shares
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