Q283
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is
A.
Issued capital
B.
Reserve capital
C.
Nominal capital
AnswerD.
Subscribed capital
Answer: Option C
Solution
Answer: Option C
Solution:
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is Nominal capital. Nominal capital, also known as authorized capital, represents the securities that are designated for shareholders.