Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

What is a share?

Options:

Capital of only Private Company

Capital of the company divided into small denominations

Capital of only Public Company

Capital of unlimited company

Correct Answer:

Capital of the company divided into small denominations

Explanation:

The correct answer is option 2- Capital of the company divided into small denominations.

Shares, refer to the units into which the total share capital of a company is divided. Thus, a share is a fractional part of the share capital and forms the basis of ownership interest in a company. The persons who contribute money through shares are called shareholders.