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
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.
Question : Minimum subscription amount of 90% is related to which share capital..........
Option 1: Authorised Capital, Nominal capital
Option 2: Issued Capital and subscribed capital
Option 3: Called up and Paid up Capital
Option 4: Reserve Capital
Question : The portion of the capital that may only be accessed during the company's dissolution/winding up is referred to as-
Option 2: Authorised Capital
Option 3: Nominal Capital
Question : Arrange the following in proper sequence as a type of share capital :
(a) Paid up Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Called up Capital
Option 1: Issued, Called-up, Paid-up, Subscribed
Option 2: Issued, Paid-up, Subscribed, Called-up
Option 3: Issued, Subscribed, Called-up, Paid-up
Option 4: None of the above
Question : Reserve capital is a part of_____________.
Option 2: Forfeited share Capital
Option 3: Unsubsribed capital
Option 4: Capital to be called up only on liquidation of company
Question : Which of the following assertions is accurate?
Option 1: Authorised Capital < Issued Capital
Option 2: Authorised Capital > Issued Capital
Option 3: Paid up Capital > Issued Capital
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile