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Question : Reserve capital is a part of_____________.

Option 1: Called up Capital

Option 2: Forfeited share Capital

Option 3: Unsubsribed capital

Option 4: Capital to be called up only on liquidation of company


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Capital to be called up only on liquidation of company


Solution : Answer = Capital to be called up only on liquidation of a company

Reserve capital represents the portion of the authorized capital of a company that is not called up by shareholders during its formation. It serves as a safeguard against financial instability and can be called upon only in the event of the company's liquidation, providing an additional layer of security for creditors and investors.
Hence, the correct option is 4.

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