4 Views

Question : The law permits a Company to offer 2,00,000 shares for sale for Rs.2 per share. The general public purchased three-quarters (3/4) of these shares. How much issued share capital is there?

Option 1: 4,00,000

Option 2: 5,00,000

Option 3: 1,00,000

Option 4: 3,00,000


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: 3,00,000


Solution : If a company is allowed by law to sell 2,00,000 shares at Rs.2.00 each, then the total Authorised Share Capital will be Rs.2,00,000*2 = Rs.4,00,000. Out of this Rs.4,00,000, 3/4th was bought by the general public, So the Issued share capital will be  400000*3/4 = Rs.3,00,000.

Hence, the correct answer is option 4.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University | LLM Admiss...
Apply
Ranked as India’s #1 Not for profit pvt. University by India Today.
Geeta Institute of Law Admiss...
Apply
18 years of shaping legal professionals | In-house judicial coaching | Proven success in National Moot Court Competitions
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Sharda University Admissions ...
Apply
North India's Largest Educational Group | NIRF Ranked 86 | NAAC A+ Grade | Highest Package 1.6 Cr | Applications Closing on 20th Aug'25
Sanskaram University LLM Admi...
Apply
100+ Industry collaborations | 10+ Years of legacy
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books