Limited Companies (Only for 4E and 5N students)

Question 1

Define issued share capital.

Answer 1

Refers to the shares that a company has issued to its shareholders.

Question 2

Define dividends.

Answer 2

Dividends are the portion of the profits that are distributed to the shareholders.

Question 3

Define retained earnings.

Answer 3

Retained earnings are the portion of the profits that are retained and not distributed to the shareholders.
It also represents the accumulated profits since the start of business.