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Commerce · Q237

Accounting

Graduate and Post Graduate · Commerce · question 237

Q237

Which of the following capital is required for the registration of the company?

A.
Issued capital
B.
Subscribed capital
C.
Authorized capital
Answer
D.
Reserve capital

Answer: Option C

Solution

Answer: Option C
Solution:
Authorized capital is required for the registration of the company. The authorized capital of a company (sometimes referred to as the authorized share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorized by its constitutional documents to issue (allocate) to shareholders.