BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Authorized or Registered Capital
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Maximum Capital
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Maximum or Altered Capital
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Authorized or Altered Capital
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Detailed explanation-1: -The correct option is D All of them. Authorized Capital, Registered Capital, Nominal Captial are the following terms used for maximum capital which the company can raise in its lifetime.
Detailed explanation-2: -Known as the registered capital or nominal capital of the company, Authorised Capital is the maximum amount of share capital that a company is allowed to issue to its shareholders as per its constitutional documents.
Detailed explanation-3: -The maximum amount of capital a company is given permission to raise via the sale of stock is called its authorized capital.
Detailed explanation-4: -The capital so stated is called authorised capital. Issued capital is that part of authorised capital which is offered to the public for subscription in the form of shares. Subscribed capital is that part of issued capital for which applications are received from the public.