Module 1 Test: Accounting Mechanics
Module 1 • 10 Questions
Question 1 of 10
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A milk producers' co-operative society and a public limited company both raise Rs. 50 lakh from a member or shareholder who already holds a large stake. Which statement correctly describes the difference in the voting consequence?
A
In the co-operative the contributor gains extra votes, while in the company voting stays at one vote per shareholder
B
In the company voting power rises with the number of shares held, while in the co-operative each member keeps one vote regardless of investment
C
Neither form allows the contribution to affect voting, because both are governed by the Companies Act
D
In both cases voting power rises in proportion to the amount contributed, because contribution is the basis of control in Indian law