Accounting for AQA: Part 1: Chapter 17

Question 1 Introduction

A debenture is a form of long-term limited company finance, often at a fixed rate of interest.

Question 1

The main advantage of owning shares in a limited company is that the investment of the owner or investor is safe because liability for the debts of the company is limited.

True

False

Question 2

Ownership of ordinary shares in a limited company entitles the shareholder to a share of profits in the form of dividends; the amount of the dividend normally varies in line with the amount of profit made.

True

False

Question 3

The Companies Act 2006 requires that every year companies pay out all of their profits in the form of dividends.

True

False

Question 4

The nominal value of shares in a limited company will fluctuate with the market value of the shares.

True

False

Question 5

A debenture is a form of long-term limited company finance, often at a fixed rate of interest.

True

False

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Accounting for AQA: Part 1: Chapter 17

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

The main advantage of owning shares in a limited company is that the investment of the owner or investor is safe because liability for the debts of the company is limited.

Question 2

Ownership of ordinary shares in a limited company entitles the shareholder to a share of profits in the form of dividends; the amount of the dividend normally varies in line with the amount of profit made.

Question 3

The Companies Act 2006 requires that every year companies pay out all of their profits in the form of dividends.

Question 4

The nominal value of shares in a limited company will fluctuate with the market value of the shares.

Question 5

A debenture is a form of long-term limited company finance, often at a fixed rate of interest.

AAT Q2022 Books

Accounting for AQA: Part 1: Chapter 17

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

The main advantage of owning shares in a limited company is that the investment of the owner or investor is safe because liability for the debts of the company is limited.

Question 2

Ownership of ordinary shares in a limited company entitles the shareholder to a share of profits in the form of dividends; the amount of the dividend normally varies in line with the amount of profit made.

Question 3

The Companies Act 2006 requires that every year companies pay out all of their profits in the form of dividends.

Question 4

The nominal value of shares in a limited company will fluctuate with the market value of the shares.

Question 5

A debenture is a form of long-term limited company finance, often at a fixed rate of interest.