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Question : Authorised share capital is also known as:

Option 1: Called up Capital

Option 2: Issued Capital

Option 3: Reserve Capital

Option 4: Nominal Capital


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 6th Jan, 2024

Correct Answer: Nominal Capital


Solution : The amount of share capital that a company may at any time raise by issuing new shares is known as authorised capital, sometimes known as nominal capital, and it is specified in the Memorandum of Association (MOA). A company is not permitted to issue shares worth more than its authorised capital.

Hence the correct answer is option 4.

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