BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The minimum amount of capital required by law for enterprises to do business
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Amount of capital contributed by members of the enterprise
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Amount of capital contributed or committed to contribute by members, shareholders or committed to contribute within a certain period of time and recorded in the company’s charter
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Sentence (B) and (C) are correct
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Detailed explanation-1: -Charter Capital means the total value of assets that are contributed or promised to be contributed by members/partners when establishing a limited liability company or partnership; or the total face value of shares that are sold or registered when establishing a joint-stock company.
Detailed explanation-2: -Charter capital is defined as the capital contributed or undertaken to be contributed by the member/owner within a statutory period (usually 90 days from the issuance date of enterprise registration certificate).
Detailed explanation-3: -In business law, contribution may refer to a capital contribution, which is money or assets given to a business or partnership by one of the owners or partners. The capital contribution increases the owner or partner’s equity interest in the entity.
Detailed explanation-4: -A capital contribution is a contribution to the equity capital of a company, but is not made in exchange for shares issued to the contributor and it does not constitute a separate asset in its own right.
Detailed explanation-5: -Cash or assets given to an entity in exchange for an equity interest or as part of an ongoing obligation, or capital commitment, to fund the entity.