Multiple choice

Which of the following is not correct?

  1. Nominal capital is the maximum amount that a company is authorized to issue to the public without alternating the memorandum of a association.

  2. Subscribed capital is that part of nominal capital that is offered to the public for subscription

  3. Subscribed capital will be equal to the issued capital, when all the shares offered to the public are taken up by the public

  4. Called up capital is that part of the subscribed capital that has been called up.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Issued Capital is that part of nominal capital that is offered to the public for subscriptionSubscribed Capital is that part of the issued share capital, which is subscribed by the public i.e., applied by the public and allotted by the company. It also includes the face value of shares issued by the company for consideration other than cash.

Keep practicing — related questions