1.

There are a number of ways in which investors can take an interest in a company and such different interests have different rights attached to them.

Which of the following NORMALLY participate in surplus capital?

Debentures secured by a floating charge

Debentures secured by a fixed charge

Ordinary shares

2.

It is not unusual for some company investments to carry cumulative dividend rights.

Which of the following statements about the declaration of cumulative dividends is correct?

They are paid when profits are available for that purpose

They are not paid until profits reach a certain percentage

They are paid in the form of a bonus issue

They are paid out of capital

Preference shares

3.

Kate, who is 66 years of age, has just retired from her employment with a pension and a lump sum payment of 100,000. She is keen to invest this money but has absolutely no knowledge of business or investment.

She does not wish to take any great risk with her investment but she would like to have a steady flow of income from it.

She has been advised that she can invest in the following range of securities:

(1) Preference shares (2) Ordinary shares (3) Debentures secured by a fixed charge (4) Debentures secured by a floating charge

In relation to the above investment forms, which is the most secure?

Debentures secured by a fixed charge

Preference shares

Ordinary shares

Debentures secured by a floating charge

4.

An annual general meeting must be held by which of the following companies?

Public limited company

Private limited company

Company limited by guarantee

None of the answers listed